Multi Housing News May 2012 : Page 24
marketing A New Game Plan Plenty can be done to revive a dated and underperforming property By Diana Mosher, Editorial Director As multifamily assets are bought and sold, one of the challenges facing owners and operators is how to reposition older properties that are underper-forming. Whether the goal is to better compete with new product in the neighborhood or to mend a tarnished reputation, there are a number of tips that can help. Many of the marketing techniques that are work-ing for high-end apartment communities can also be applied to mature properties that are struggling, according to Kevin Thompson, senior vice presi-dent of marketing at Bell Partners Inc., a multifam-ily real estate investment and management com-pany based in Greensboro, N.C. The Bell portfolio includes 225 communities and more than 64,000 units in 15 states, spanning a spectrum of ages and market classes. To ensure marketing success, Thompson suggests fi nding the competitive edge by looking at the as-that advertises a $250 or $500 referral fee for not just their community, but for any sister referrals as well. A picture’s worth a thousand words, and this shows that your apartment company is bigger than just this one older asset. “It lets renters know you have a variety of apartment communities and some-thing to meet everyone’s needs,” adds Thompson. It’s also important to be comfortable embracing new technology. “You can portray your older asset as a techno-friendly property if you have an attrac-tive, well-functioning website. Overall, websites are affordable to build these days, whether you build it in-house or outsource. Online rent pay and mainte-nance requests are examples of services that today’s renters demand,” says Thompson. Social media falls under the umbrella of new technology, and today’s apartment consumers—of all ages and socio-economic backgrounds—will no-tice if your apartment community doesn’t have a ` Get residents’ opinions on where they’d like to see your renovation dollars spent: in the apartments or in common areas. a set from the prospect standpoint. “What feature or amenity stands out the most, from a marketing and advertising perspective? An older asset may have a better location and bigger fl oor plans. Perhaps it’s more affordable, or can be marketed at ‘lower rent per square footage,’ or located in a well-established neighborhood,” says Thompson. These are a few examples of features to emphasize. A community referral program can also help. “An older asset can ‘coat tail’ on the marketing of a newer asset by playing up the attributes and ben-efi ts of sister properties in the same market,” says Thompson. Showcase your sister properties with enticing photography on a t-stand sign in the lobby presence on Facebook, Twitter, etc., or worse yet, if you aren’t keeping an existing social page up-to-date and responding to feedback/questions. Renter expectations are certainly defi ned by experiences with other industries. “You can do your banking and shopping on your phone, so renters now expect to be able to pay the rent on their phone as well,” explains Thompson. “Once they get used to the convenience factor there’s no turning back.” But keep reputation man-agement in mind before diving into social media and create templates and protocols for how associ-ates will respond to customer feedback on forums such as Yelp and Apartmentratings.com. Another strategy that can give older communi-ties a competitive edge is to implement a lease buy-out program. “We conducted a few pilots of this program at AvalonBay [Thompson spent 12 years there, most recently as vice president of Market-ing] and found that many renters appreciated this new twist on lease terms. Given that recent Apart-ments.com research has shown that job relocation is currently the number one reason for moving, pro-viding the resident options can give an older com-munity a competitive advantage,” says Thompson. Furthermore, with new revenue management software programs, communities can offer a range of lease terms versus the traditional 12-month con-tract. Not only can this entice prospects during their shop, but it can also provide a more balanced lease expiration pattern and higher rent revenues. In fact, good customer service not only tran-scends the age of your brand—it’s married to your marketing plan. Customer service is how you bring your brand to life. Therefore Thompson suggests surveying residents before undertaking renovations. “Get their opinion about where they would like to see your renovation dollars spent: in the apart-ment homes or in the common areas,” he adds. You’ll fi nd that some residents will think manage-24 May 2012 | Multi-Housing News
Marketing: A New Game Plan
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