© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042 LEASING & MARKETING MULTIFAMILY...

LEASING & MARKETING MULTIFAMILY

E-mail with attachments

How to fill out:• The weekly source of traffic report

• The weekly measurement report

Staffing -- Sufficiently

Trained or Under-trained?

Sales:

Tenure of Labor

Sales:

Insufficient Labor –

Call Centers

Competitive Rent Analysis and Pricing

Net Effective Rents

Availability Specific

by Floor Level

Price Weekly

Price Ranges Based on Supply, Demand and Location of Other

Income Producing Fixed Assets

Pricing Structure

Base Rents +

Amenities +

Premiums =

Street Rent by Address

Flat Line Pricing = No Absorption Velocity

Consumers Make a

Value Choice

“Consumers form their price image of providers by their shopping

experiences. It is this price-value perception that drives consumer

behavior.”

Source: Tim Flanagan,

The Partnering

“Desire, along with utility and scarcity, is considered

in relation to purchasing power.”

Source: The Appraisal of Real Estate- Eleventh Addition Appraisal Institute

Supply [or Inventory]

What’s Your Inventory Management Strategy?

High Low

Dumping Inventory

Days Required for Sufficient Notice

Lease Status:

Month-to-Month

Lease Status:

Corporate Leases

Minimize

Congested

Activity

Lease Signing Appointments

Strategy:

Every great organization has a strategy before it embarks on a

mission.

What’s Your

Leasing Strategy?

Do you reward the behavior that’s in the best interest of

the real estate asset?

LEASING WITHOUT CONCESSIONSFast In … Fast Out --200 Residents – Four Cities

ApplicationDate

Move-inDate

Less than21 days------------NOW

72 Rentals

Under 1 Year1-2 Years

Still There

45% or

90 Rentals

21 to 60day lead----------SOON

37 or 51%26 or 36%9 or 13%

14 or 16%43 or 48%33 or 37%

5 or 13%11 or 29%22 or 58%

38 Rentals

More than60 days------------FUTURE

Source:

Edward Kelley 1994

Used with permission.

Leasing Strategy

Address Selling

Price Sheet with Effective Dates

Leasing Strategy

Point of Depletion

Minimizing Hold-Time Period on Possession

Excessive Income

Erosion

Product Differential – Sell Towards Your Asset’s

Uniqueness

Model ApartmentsShould You Have a Model

Apartment or Not?

YES! When the floor plan unit mix exceeds 50%.

NO! If you have fewer than 220 apartments.

Model apartment homes should always be on the first floor except when the unit type access is only on the second or higher floor level.

300 – 400 units should have one model.

Put the model in the unit type that historically has the most availability (“Screaming Mimi”).

For models, use an interior designer that will make it ‘real’ using items found at places that people shop.

Three Types of Concessions

1. Value Added

2. Tangible Goods

3. Free Rent

Homogeneous Groups

Availability Profile Case Study

Income Classification – Concessions Can Be

Recurring or Non-recurring

“Sluggish purchasing power keeps the pressure on supply in check. If

purchasing power expands, the supply of a relatively fixed commodity will dwindle

and create a market-driven demand to increase the supply.”

Source:

The Appraisal of Real Estate- Eleventh Addition/ Appraisal Institute

Each Percentage of Occupancy has a

Corresponding Level of Rental Rate

Market Demand Curve Specific Unit Type$1000

80% 85% 90% 95% 100%

Occupancy Rate

$740$730

$710 $690

Market Demand Curve Specific Unit Type $1000

80% 85% 90% 95% 100%

Occupancy Rate

Corresponding Rent

Market Demand Curve Specific Unit Type $1000

80% 85% 90% 95% 100%

Occupancy Rate

Income Management Performance$1000

80% 85% 90% 95% 100%

Occupancy Rate

“A market in which the forces of supply and demand are in balance will result in prices significantly different from those produced by a market in which supply and demand are out of equilibrium.”

Source:

The Appraisal of Real Estate-Eleventh Addition/ Appraisal Institute

“Sluggish purchasing power keeps the pressure on supply in check. If

purchasing power expands the supply of a relatively fixed commodity, it will dwindle and create a market-driven

demand to increase the supply.”

Source:

The Appraisal of Real Estate-Eleventh Addition/ Appraisal Institute

Decisions:

Concession?Change Net Effective Rent?

Specific Address?

Consider discretionary discounting to build

market share.

Look in the mirror … is it the market or is it our behavior?

Playing the Pricing Game

First, ensure market demand

Second, inspect available apartment inventory and question whether it meets the expectations of management.

Third, show only unassigned vacants for a greater closing ratio.

Fourth, take steps to ensure that sales training becomes more concentrated and focused on service.

Fifth, categorize your apartment addresses in homogenous groups.

Sixth, price specific apartment addresses with the longest days vacant at a lower price [net effective rent, not a concession] with the condition that the offer expires within 48 hours.

Seventh, reward leasing professionals with higher bonuses on leases with no concessions offered.

Eighth, re-contact potential lease renewals one at a time.

RESOURCE DIRECTORY

www.SMMOnline.comwww.Realhound.comwww.e-tsonline.com

www.TheMarketSherGroup.comwww.TrendLook.comwww.BeaconTech.net

www.ApartmentExpert.comwww.SatisFacts.net

Jennifer A. Nevitt

775. 786. 4242 or 704. 332.7042

Info@BravoStrategicMarketing.com

Info@ApartmentMarketingCoach.com

© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042 LEASING & MARKETING MULTIFAMILY...

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