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The Psychology of Apartment Leasing – Is Selling Sleazy? (+ 10 Tips to Emphasize Your Genuineness)

Apr 18th, 2011
by jameswb.
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I have been surprised lately by how many people react negatively to using psychology in selling situations.  In fact, many site managers have turned up their nose and commented, “We don’t sell.  Selling is beneath us.”  Well, vacancy loss is beneath me.

A friend and I were chatting about this when she commented:  “When a kid wants to get something in the store and the parents are not convinced they need it…. here is born our first concept of sales.  ‘I will die if we do not get a box of Cap’n Crunch cereal!’”

The reality is that all of us are selling all of the time.  Common non-selling selling situations include:  asking your boss for a raise, presenting a budget to an owner, going on a job interview, proposing marriage, trying to get your partner to go to a football game instead of the latest Jennifer Anniston flick, a meeting with your parole board or negotiating the bigger slice of the pie.

Is understanding human behavior and why we do what we do sleazy?  Is understanding how to motivate your child to study sleazy?  Is understanding when the best time to bring an idea to your partner’s attention (vacation spot, home addition, mother-in-law visit) sleazy?  There is a time and a place and a way for everything.

Everyone has to find a technique that is genuine to them.  If you are real you will not come across as contrived.  It is when we try to be someone we are not or we put on a mask of who we think we are supposed to be that we come across as fake.

Solution selling

Hate selling?  Try “Solution Selling”. This is a buzz phrase in our industry today—and it has a nice warm glow to it.  We are selling solutions to our customers’ problems—and that cannot be bad, can it?  When a customer walks into your office, instead of thinking of yourself as a sales person ask, “What can I do to help this customer solve her problems today?”  Frankly, all it takes is a few easy ingredients:

  1. A caring, helpful attitude (This is a basic first step; make sure you really care about your job, your product and your customers.  If you do not, ask yourself why?)
  2. An understanding of your product and how it can benefit your customers.
  3. A ready smile
  4. An ability to listen, answer questions and ask for the sale.

However, if we knowingly sell someone something that we know they do not want or cannot afford, that is sleazy.

Manipulative?

In our firm, we have spent a lot of time training clients on understanding personality profiles and how different personality types behave, interact and prefer to communicate (in both sales and management).  This helps us gain a deeper psychological understanding of our customers (and they could be internal—your boss—or external). For example, I once had a boss who preferred e-mail. He also hated information overload—so I learned to condense and bullet point everything.  If he wanted more information, he would ask.  If I left a voice mail it would likely be deleted unheard.  Is my attempt to communicate in a way he could best receive the information manipulative?  This same approach to our customers is really just good customer service.

Emphasizing Your Genuineness

Here are a few tips on creating positive nonverbals to emphasize your genuineness:

  • Smile (a real smile includes the eyes)
  • Start by being genuine. (Leave ‘masks’ at home.)
  • Speak your customers’ language in a respectful way; don’t talk down to them.
  • Take the time to listen to your customer.
  • Don’t cross your arms (indicates defensiveness)
  • Lean forward slightly (indicates interest)
  • Don’t sit across a desk from your customer—this creates a barrier. Try and find a position that indicates that you are on their team.
  • Maintain good eye contact (unless it is offensive in their culture to do so).
  • Don’t speak too quickly.
  • Laughter is good:  it is a sign that you are relaxed and at ease with your customer.
  • Don’t rub your nose or cover your mouth.  (Benjamin Franklin said:  “Look at someone’s mouth while they’re talking, and at their eyes while you’re talking.”)

Don’t be afraid to show the positive aspects of your personality at work.  It is when we put on masks that people get confused.  Your customers will positively respond to who you genuinely are.

I think I’ll go have that bowl of Cap’n Crunch now!

Cheers! 

Jim Baumgartner

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Building Apartment Revenue: Yield Management

Apr 15th, 2011
by jameswb.
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It is no mystery that the past few years have been tough on the multi family industry.  We are seeing pockets of recovery while other regions are still suffering.  Despite overall vacancy issues, you often will see certain floor plans or views maintain high demand.  This is where market rate properties can boost revenue by practicing yield management. 

I first started practicing yield management when I worked with a client that primarily owned hotels.  They taught me a lesson that I would never forget.  When occupancy is high, the prices go up.  When occupancy is low, prices drop.  Basic right? The key; however, was to look for opportunities to grow revenue even when overall occupancy is down.

I was curious as to what Wikipedia had for a definition and really like what they had to say:

There are three essential conditions for yield management to be applicable:

  • That there is a fixed amount of resources available for sale.
  • That the resources sold are perishable (there is a time limit to selling the resources, after which they cease to be of value).
  • That different customers are willing to pay a different price for using the same amount of resources.

Airlines jumped on yield management after deregulation.  In essence, they cannot manufacture more seats just as we cannot add more rental units.  Hotels quickly jumped on this trend as well.  We all sell space for a specified time frame.  We have a time limit—and if we don’t maximize that time we lose money.

There are software programs available that will help you to do this; however, if you want to experiment without the investment, gather your front-line team, take a look at your property and ask, “Which styles always rent the fastest?”  Every property has apartments that rent quickly.  This is an opportunity to create revenue where there was none before.  Push the rents on those styles. 

Create a base price.  This may be as simple as taking your current pricing and adjusting from there.  However, if upon review you find that some unit styles are always full and you have occupancy issues on others, you may have a pricing problem.  If you aren’t already doing so, do a market analysis to compare your pricing with your comps.  Are their rents higher or lower than yours?  (You can look at rents per square foot; however, most customers do not take the time to analyze this.  They are more concerned with “What do I get for my money and how much will it cost me each month?”)  Are their amenities better or not as nice?  Is the location comparable?  Put yourself in your customers’ shoes.  Be as unbiased as possible.  If you were your customer, how much would you pay?  As a result of this exercise you will discover where you can push rents and perhaps where some should be pulled back a bit.

Increase rents for value items.  Increase the base price for amenities such as fireplace, vaults, extra windows, upgraded finishes (appliances, carpet, remodels, etc.), which floor it is on (top floor is generally premium—unless you do not have an elevator, walk-outs are a premium due to convenience for dog owners and active residents) and views (pool or nature views).  (One of the benefits of going through this exercise with your team and manually adjusting rents is that everyone understands the reasoning behind the pricing and can therefore explain it to their customers.  This has been a frustration with yield management software.)

Invariably, when we have gone through this process we have ended up creating the equivalent of several units worth of revenue.  So, on a 100-unit site, we have ended up with revenue generation equivalent to 103 to 107 units (based on former average rents).  At the high end you can end up with almost an extra month’s worth of revenue per year!

You will also find that you have enough income to more than offset reduced rents on the apartment styles that typically do not move quickly.  This gives you the benefit of a lower ‘loss leader’ for advertising purposes as well.  There is also snobbery on the upper end of the market so this increases your total range and broadens your appeal to a larger slice of the market.

At the end of this process you may find that you love the extra income that yield management brings you.  (Undoubtedly your ownership will!)  At that point you will want to look at the benefits of utilizing a yield management software versus doing it yourself.  There are pros and cons to both.  Regardless of which you choose, you will grow your asset and hopefully increase bonuses and your career growth!  Seize the opportunity!

Jim Baumgartner is Senior Vice President of RentSoda, a consulting company offering apartment marketing, business & operations consulting as well as industry-specific training.

www.rentsoda.com |8 blog.rentsoda.com| jim {at} rentsoda(.)com | 

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Five Easy Phone Tools to Convert Your Phone Leads into Appointments!

Mar 31st, 2011
by jameswb.
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When your phone rings, the goal is to set an appointment so the prospective resident comes out to see you and rents an apartment!  While attitude is key; there are some things that you can do to make your phone interaction more successful.

  1. Smile on the phone.  It sounds simple and it is.  People can hear the warmth of your smile over the phone.  Remember, the majority of prospects have already narrowed their choice down to a final few.  Their goal now is to find the right ‘chemistry’. 
  2. Use the name exchange:  “By the way, my name is Jim and you are….?”  End with an upward inflection and then just wait.  The vast majority of the time your customer will fill in the blank.  Once they do, use their name in conversation.  Every time you use their name it brings their focus back to the call and it takes the conversation to a more personal level.
  3. Sell the benefits:  Take some time to write down a list of everything your current residents like about your property.  Then note why they like that specific item.  This is the benefit to them.  For example, many of your residents comment that they like your Indoor Pool with an adjacent outdoor tanning deck. Help your customer understand why this is a good thing.  “Our residents love the indoor pool because you can always use it—not just during the warm weather months.  And tanning is a dream because it’s steps away.  You know how it works…’Bake, dip, flip, dip!’”  Not everyone will want the same features so think about who is attracted to which feature and keep a list close to your phone so you are always prepared. 
    1. Other items that people want to know about include anything that makes life easier:  washer and dryer in the home, ice maker, self-cleaning ovens, etc.
    2. Convenience factors including bus stop nearby, adjacent parks, fitness facilities, free cappuccino in your lobby, etc.
    3. Social opportunities:  happy hour by the pool on Thursday nights, free movie nights, yoga classes, etc.
  4. Discover hot buttons:  your job is to ask questions.  This will help you better know and understand your customer.  Examples include:
    1. Is the home just for yourself?
    2. Is there anything special you are looking for in your new home?
  5. Ask for an appointment.  “You have to come see us!  Would 5:15 tonight or right now be better for you!”  (The goal is to get them to see you as soon as possible.  The longer they wait to visit, the less excited they are.)

Start integrating these tools into your telephone technique and you will be surprised at how positively your customers respond.  These tools will increase the number of appointments you set—and more appointments mean more opportunities to lease an apartment!

Cheers!  Jim Baumgartner | Rent Soda

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Renting Apartments: Am I Who I Say I Am—& Do I Know You?

Mar 25th, 2011
by jameswb.
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I was doing cardio last week when I noticed a striking woman with long brown hair.  Now generally when people are doing cardio, hair (for both women and men) is strapped down with bandanas, caps or scrunchies.  This hair was flowing.  I figured she was in her early- to mid-thirties and ‘working’ that great hair.

Then she turned around. 

On the flip side of this flowing dark hair was a 75-year-old face. I was startled; then I started to chuckle.  I recalled an interview by Beverly Johnson, the first African-American model to appear on American Vogue (1974).  She relayed a story of how, a few years earlier, a young guy on a golf course approached her from behind, “Hey, babe!”  When she turned around he started to stammer, apologize and back up.  At that point she asked herself why she worked so hard to stay looking so young!

Am I Who I Say I Am?

If you find that you are getting a lot of hits, calls to the site and no-shows for appointments, ask yourself, does our advertising reflect who we really are?  Often our advertising paints a picture that overshoots who we actually are.

Our customers have figured this out.  They are pretty cynical about our integrity!  This is one of the reasons video is so popular—we haven’t figured out how to photoshop a video yet!  [Update: Photographer Jacque Rosenau just informed me that she is doing it with Adobe After Effects software. However, until this becomes widely known, there will still be a perception that video is reality.]  Coco Chanel said, “Hard times arouse an instinctive desire for authenticity.”  (It’s a fashion-theme day.)

Mixed messages are confusing.  Our customers do not like to be confused.  When they are confused they will just keep on moving.

Do I Know You?

We also need to make sure we know who our target market is.  In everything we do, we should visualize who our reader/viewer/listener is.  (If you are not sure, a great place to start is by looking at who is living in your building now.  What is the average age and income?  Where do they work?  Where did they move from?  What amenities attracted them to your community?)

I was recently having lunch with Kari Shideman of Move.com.  We were discussing all the exciting technology that supports our ability to rent apartments.  We landed on the subject of Facebook.  Over the course of a day one apartment community had posted several interesting messages on their Facebook page (*small print:  names have been changed to protect the innocent):

  1. Just a reminder, we will be performing snow removal clean-up at 3:00 today.  Any vehicles left in the parking lot will be towed at your expense.
  2. Have any friends or family looking for a great new place to live?  Refer them to us and get a $500 rent credit the month they move in!
  3. Will the person driving a black Camry parked in the Future Resident’s Parking space PLEASE move your car?!  If you don’t get it out in the next 30 minutes we are towing it!
  4. Friendly reminder!  Your rent is due by 5:00 today!  Any rent not received by then should include a $50 late fee.  Thank you!
  5. WE LOVE OUR RESIDENTS!  Stop by the clubhouse this Friday night for a “Resident Appreciation potluck”.

If you see this, ask yourself, ‘Do I know you?’ Or, more clearly stated, ‘Do I know WHO this Facebook page is for?  What is the purpose of our Facebook page?’  As with any other marketing source, we have to establish what function we want it to have.  It should take the following into consideration:

  1. Facebook is all about the positive.  On your personal page, you quickly delete anyone who is consistently negative.  The same is true for your community page.  Give every message a positive spin.  Using the snow removal as an example: “Can you believe we got MORE snow?!  Thanks for your patience as we have been trying to find places to push it!  Our snow removal company is coming out for a clean-up this afternoon at 3:00.  The city has given us permission to park on the street all day today.  If you have questions, please call Kitty in the office.  Thanks!”
  2. Facebook is a place for messages you want the entire world to read.  Don’t single people out on Facebook.  It is a social network.  The example about the person who parks in Future Resident Parking should be handled one-on-one.  This is not an event that you want your entire following to enjoy.  The same is true for late payers.  You know who they are.  THEY know who they are.  Having a talk with them one-on-one (and preferably early) is the most effective method of rent collection.  The rest of your residents really don’t want to be bothered with reminders to do things that they already do.
  3. Facebook is eternal…okay, maybe it isn’t forever, but your posts have a long life.  If you are having a bad day, are angry or suffering from a bad attitude do not post.  Wait a day.  If you aren’t sure, have someone else review what you have written before you put it up.
  4. Facebook works best when you pick a target audience that you want to consistently message.  Once you start messaging; run with it.  Kari Shideman adds:  “If the main “fans” or “friends” on FB are your current residents and their friends, focus your message on resident retention – pool parties, neighborhood and community events, fun trivia on the area, “meet the office team”, “meet the maintenance team”, referral offers, etc.  No negative comments, rules, regulations, etc – this is your opportunity to build positive rapport with your residents and to show other non-residents on your page how wonderfully you treat the people that live at your community.  If your target audience is future residents – then include the community and neighborhood events, along with the benefits of living at your community.”
  5. Skip the Features – Give me the benefits!  As in all sales, don’t give a laundry list.  People want to know the benefits.  For example, instead of “washer & dryer in each unit”, your post to prospects could read “Life is busy!  Our residents love that they can throw in a load of laundry on the way out the door, and put it in to dry when they get back!”  Or offer testimonials from current residents.  In the words of Kari: Make it targeted, relevant and personally engaging.

This is just the tip of the iceberg.  But if you cover these items, it will go a long way towards making Facebook a positive component of your overall marketing program.  Take the time to look at your other advertising sources as well.  Are you who you say you are? Is your marketing message pointed directly at your target market?  Eliminating confusion will strengthen your place in the market—and improve your closing ratio.    

Cheers!  Jim Baumgartner | Rent Soda

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Renting Apartments: Am I Who I Say I Am—& Do I Know You?

Mar 25th, 2011
by jameswb.
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I was doing cardio last week when I noticed a striking woman with long brown hair.  Now generally when people are doing cardio, hair (for both women and men) is strapped down with bandanas, caps or scrunchies.  This hair was flowing.  I figured she was in her early- to mid-thirties and ‘working’ that great hair.

Then she turned around. 

On the flip side of this flowing dark hair was a 75-year-old face. I was startled; then I started to chuckle.  I recalled an interview by Beverly Johnson, the first African-American model to appear on American Vogue (1974).  She relayed a story of how, a few years earlier, a young guy on a golf course approached her from behind, “Hey, babe!”  When she turned around he started to stammer, apologize and back up.  At that point she asked herself why she worked so hard to stay looking so young!

Am I Who I Say I Am?

If you find that you are getting a lot of hits, calls to the site and no-shows for appointments, ask yourself, does our advertising reflect who we really are?  Often our advertising paints a picture that overshoots who we actually are.

Our customers have figured this out.  They are pretty cynical about our integrity!  This is one of the reasons video is so popular—we haven’t figured out how to photoshop a video yet!  [Update: Photographer Jacque Rosenau just informed me that she is doing it with Adobe After Effects software. However, until this becomes widely known, there will still be a perception that video is reality.]  Coco Chanel said, “Hard times arouse an instinctive desire for authenticity.”  (It’s a fashion-theme day.)

Mixed messages are confusing.  Our customers do not like to be confused.  When they are confused they will just keep on moving.

Do I Know You?

We also need to make sure we know who our target market is.  In everything we do, we should visualize who our reader/viewer/listener is.  (If you are not sure, a great place to start is by looking at who is living in your building now.  What is the average age and income?  Where do they work?  Where did they move from?  What amenities attracted them to your community?)

I was recently having lunch with Kari Shideman of Move.com.  We were discussing all the exciting technology that supports our ability to rent apartments.  We landed on the subject of Facebook.  Over the course of a day one apartment community had posted several interesting messages on their Facebook page (*small print:  names have been changed to protect the innocent):

  1. Just a reminder, we will be performing snow removal clean-up at 3:00 today.  Any vehicles left in the parking lot will be towed at your expense.
  2. Have any friends or family looking for a great new place to live?  Refer them to us and get a $500 rent credit the month they move in!
  3. Will the person driving a black Camry parked in the Future Resident’s Parking space PLEASE move your car?!  If you don’t get it out in the next 30 minutes we are towing it!
  4. Friendly reminder!  Your rent is due by 5:00 today!  Any rent not received by then should include a $50 late fee.  Thank you!
  5. WE LOVE OUR RESIDENTS!  Stop by the clubhouse this Friday night for a “Resident Appreciation potluck”.

If you see this, ask yourself, ‘Do I know you?’ Or, more clearly stated, ‘Do I know WHO this Facebook page is for?  What is the purpose of our Facebook page?’  As with any other marketing source, we have to establish what function we want it to have.  It should take the following into consideration:

  1. Facebook is all about the positive.  On your personal page, you quickly delete anyone who is consistently negative.  The same is true for your community page.  Give every message a positive spin.  Using the snow removal as an example: “Can you believe we got MORE snow?!  Thanks for your patience as we have been trying to find places to push it!  Our snow removal company is coming out for a clean-up this afternoon at 3:00.  The city has given us permission to park on the street all day today.  If you have questions, please call Kitty in the office.  Thanks!”
  2. Facebook is a place for messages you want the entire world to read.  Don’t single people out on Facebook.  It is a social network.  The example about the person who parks in Future Resident Parking should be handled one-on-one.  This is not an event that you want your entire following to enjoy.  The same is true for late payers.  You know who they are.  THEY know who they are.  Having a talk with them one-on-one (and preferably early) is the most effective method of rent collection.  The rest of your residents really don’t want to be bothered with reminders to do things that they already do.
  3. Facebook is eternal…okay, maybe it isn’t forever, but your posts have a long life.  If you are having a bad day, are angry or suffering from a bad attitude do not post.  Wait a day.  If you aren’t sure, have someone else review what you have written before you put it up.
  4. Facebook works best when you pick a target audience that you want to consistently message.  Once you start messaging; run with it.  Kari Shideman adds:  “If the main “fans” or “friends” on FB are your current residents and their friends, focus your message on resident retention – pool parties, neighborhood and community events, fun trivia on the area, “meet the office team”, “meet the maintenance team”, referral offers, etc.  No negative comments, rules, regulations, etc – this is your opportunity to build positive rapport with your residents and to show other non-residents on your page how wonderfully you treat the people that live at your community.  If your target audience is future residents – then include the community and neighborhood events, along with the benefits of living at your community.”
  5. Skip the Features – Give me the benefits!  As in all sales, don’t give a laundry list.  People want to know the benefits.  For example, instead of “washer & dryer in each unit”, your post to prospects could read “Life is busy!  Our residents love that they can throw in a load of laundry on the way out the door, and put it in to dry when they get back!”  Or offer testimonials from current residents.  In the words of Kari: Make it targeted, relevant and personally engaging.

This is just the tip of the iceberg.  But if you cover these items, it will go a long way towards making Facebook a positive component of your overall marketing program.  Take the time to look at your other advertising sources as well.  Are you who you say you are? Is your marketing message pointed directly at your target market?  Eliminating confusion will strengthen your place in the market—and improve your closing ratio.    

Cheers!  Jim Baumgartner | Rent Soda

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Facing Failure: Why Excuses Never Lease Apartments

Mar 15th, 2011
by jameswb.
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OWN IT

At some point in my career I realized that owning up to my mistakes made sense.  I am a perfectionistic over-achiever so this was not an easy thing for me to do.  I always want to do it right and to be seen as doing it right—there is a fair amount of pride attached to that.

However, I saw that covering mistakes or covertly fixing them after-the-fact involved more blood, sweat and stress than I was comfortable with.  Invariably, when I admitted my omission or mistake, my boss would offer direction or advice.  (Both of these responses helped me grow.)  Rarely was it anything to cause my boss’ blood pressure to rise.  In fact, it would allow for constructive dialogue and open communication.

I also realized that when I failed at something I had to face the failure head-on.  I had counseled employees that failure is a course in the University of Life.  We pay the tuition, learn from our mistakes and move on.  In addition, as a supervisor/mentor/coach I couldn’t help my team if they didn’t bring the problem to me. 

 

REFRAIN FROM THE BLAME GAME

Another great temptation is to play the blame game.  “I didn’t get that report to you when you wanted it because accounting didn’t deliver the revised numbers on time.”  “We didn’t hit our occupancy goal for March because traffic is slow/the ads are bad/no one is qualified.”

No one is to blame except for me. 

Conversely, no one can fix it except for me.  When leasing apartments (as in every other area in life) success is all in our approach and mind-set.  Sure, your ad might be bad but your job is to figure out what is wrong with it, shout it to the world and see that it gets fixed.  Or take matters into your own hands and start a rotation of Craigslist ads.  The same is true for slow traffic:  what can you do to generate more?  Who do you know?  Who can you call?  Can you go through old guest cards and start making calls?  How about the guest cards from last year?  Chances are your old prospects are facing renewals wherever they landed and perhaps are regretting their decision NOT to rent from you last time.  As for all of the unqualified traffic (there IS a lot of it and we will see more) make sure your prospects understand your Resident Selection Criteria.  If someone is close to being approvable, help them clean up their credit (NOTE:  We are not credit reporting bureaus and cannot reveal what is on their credit reports; however, you should refer them to whoever does your checks so they can see what is on it.)  Prepare a handout with resources for credit counseling; discuss policy changes to allow for co-signers, etc.

Or you could wait for someone to fix it for you.  But be prepared for a long wait.

ASSESS IT

Facing failure means being honest with yourself.  Step out of your head for a second.  The goal is to strip the emotions away.  It’s just you—no one is watching this and recording it to use against you later!  Honestly ask yourself:  How could I have done this better?  Why didn’t I ask for the sale?  Was I afraid?  What am I afraid of?  Be relentlessly truthful with yourself. 

If you are responsible for leasing apartments at your property, the fastest way to success is to stay at 95%-plus (depending on your company philosophy).  In the world of apartments, bonuses are based on income, the ability to make upgrades to your property is based on income and salary increases are based on income.  It is all a numbers game.  If you close 30% of your prospects, and you have nine apartments available, you need 30 prospects.  (If you are closing at 50%, you just need 15.  Sadly, if you close at 15% you need 60!  Has anyone figured out that life gets easier—meaning you have more free time—if your closing ratio is higher?!)  If your closing ratio is low, ask yourself why?  Research closing techniques, ask your company experts for help and advice, and ask someone with a great closing ratio to mentor you.  The only one who can do this is you.

You will find that if you are in the mindset of blaming and shifting responsibility you will be unsuccessful and unhappy.  I love loving to go to work!  We spend a lot of time there.  Why not face your frustrations and failures squarely, address and fix them so you can love work again?  Oh—and as a result you will rent a lot of apartments and then your team will love having you at work too!

Cheers!  Jim Baumgartner | Rent Soda

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The Psychology of Apartment Leasing – Are you a Process or Procedural Buyer?

Mar 8th, 2011
by jameswb.
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When making the decision to buy, we make decisions in one of two ways.  As an apartment leasing professional it is important to understand these two styles and what makes them tick.  These styles are Process Buyers or Procedural Buyers. 

Process Buyers

Process Buyers have a need to do extensive research.  They exhaust all the possibilities.  They will use as many resources as they can find (web sites, friends, print, driving neighborhoods, etc.)  They devote substantial periods of time to the endeavor.  They are the customer who after researching your paid on-line advertising will then go in search of your Facebook page and apartment ratings to verify that you stack up.  Process Buyers have a secret fear that when they make a decision, a better deal will surface the next day! 

Procedural Buyers

The Procedural Buyer often will go through an extensive search as well; however, they want to get it done.  Therefore they do the search at lightning speed.  Their goal is to take the universe of rental options and cut it down to three or four options as quickly as possible.  They make decisions quickly and then move on with no regrets.

So how does this apply to leasing apartments?  Take the time to understand your prospect’s buying style.  Ask questions.  If your prospect responds to your question “So how many apartments have you looked at?” by saying, “We’ve been looking for two years“(this is an actual response I received) you will know they are a Process Buyer.  They are not in a hurry to be closed.  However, do not give up!  Your job is to give them the information and then reassure them that this is the best deal at the best time for them.  If they still refuse to be closed, establish a relationship and continue to feed them confidence-building information.  While this may seem time-consuming, the benefit is that once they move in it will take them another two years to give notice and find a new apartment!

Conversely, when a Procedural Buyer enters your office door, they are ready to do the deal.  Stay on point, answer their questions and ask for the sale.  If they weren’t convinced you were a viable rental option they would not have darkened your door in the first place.  At this point they are just verifying that the chemistry is there before jumping into a relationship with you and your property.

These two styles are vastly different and need a different approach.  If you overload the Procedural Buyer with too much information they will get frustrated with you.  If you go right for a direct close with a Process Buyer they will not have the confidence that this is the best option and will delay their buying decision.

Boost your closing ratio by better understanding your prospects’ style of buying and match your selling and closing techniques to it.  This will make them comfortable with you and confident in making the choice to live at your property. 

Cheers!  Jim Baumgartner | Rent Soda

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The heART of the Deal: Psychology of Apartment Leasing – the Evidence Fundamental

Mar 1st, 2011
by jameswb.
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Our customers have been trained to question claims and promises.  People expect lies.  How do we demonstrate our credibility?

Key:  I can’t deny what I see.

In a situation where we are being sold we tend to approach it from a negative perspective.  We are prepared to disagree. Our brains spend a great deal of time looking for evidence to support what we have already decided is true.  Therefore, when a sales person says something that runs counter to what we already believe, we deny it by labeling it as a mistake or an out-and-out lie.  This is why it is so important to have proof of what we say—and any proof that your customer can see with their own eyes has the most power.  The strength of this proof is that when you bring it to the attention of your customer, they have to judge it independently and cannot immediately deny it.  Some examples include:

  • A market study showing average rents or occupancies in your area - “See!  I told you that you better not wait too long to put your application in on this apartment home!”
  • Newspaper articles, journal articles or blog entries showing rental trends, the cost of home ownership, discussing the planning, development or construction of your property, etc.  Any positive PR regarding your property should be framed in your leasing center.  More topical information should be placed in a notebook within easy view of your customers.
  • Consumer report information on appliances – some customers question the quality, reliability and energy efficiency of the appliances they will be using.  Provide documentation that you are green and that the quality of the appliances will reduce their face time with your maintenance team.
  • Blueprints or architectural reports on sound attenuation, staggered stud common walls, R-factors, etc. – Often in a renovation or new construction scenario, we are selling what will be; not what is!  As such, we are selling the dream.  Provide concrete evidence whenever you possibly can.
  • Actual photographs of the available home in Craigslist ads or e-mail enquiry responses – “Jan, here is a photo of the view from the apartment we talked about on the phone…”
  • Youtube videos –  showing construction in progress or of actual available apartments.
  • A print out of your apartment ratings web pages showing actual customer comments regarding your property.
  • Meeting your residents and staff – one of the beauties of the internet is that the majority of our customers have narrowed their choice based on what they have seen on-line.  Their eventual buying decision is hinging on whether or not there is chemistry.  By taking the time to greet other residents while touring you demonstrate that you care about your customers after the sale.  In addition, when they meet other members of your team, it gives them more evidence that you are good people and will take care of them.

Evidence depends on its source for credibility.  For example, many customers today realize that apartment ratings sites are often used for revenge so while they may read them; they take these comments with a grain of salt.  The same is true for the photos we use in our advertising.  Our customers are used to ‘models’ (both human and structural) being airbrushed and photo-shopped.  This is one reason that videos have become increasingly effective (they demonstrate what the customer would actually see if they were in the apartment).  Look for credible evidence that supports your sale.

Evidence is especially important when we are uncertain.  Uncertain moments for most of us include when we are going through a life-change (going away to school, divorce, death of a partner, relocating to a new city, etc.).  This is when we go into a hyper-research mode looking for any evidence we can about our potential buying decision.

Take the time to pull together evidence that supports your customer’s decision to rent at your property.  Look for material that is hard to deny (and thus supports your position and gives them comfort).  Prove that you are a leasing professional with integrity!  When you add this supportive evidence to your already flawless leasing technique, you will be unstoppable!

Cheers!  Jim Baumgartner | Rent Soda

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The heART of the Deal: The Psychology of Leasing – the Exchange Fundamental

Feb 4th, 2011
by jameswb.
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In all human interactions there is a great deal going on below the surface.  This is psychology.  We all bring different understandings, intents and cultural references to relationship; however, there are some concepts that are relatively universal.  In order to be a better salesperson, it pays to understand the psychology of human interactions.

One of these key concepts is the Exchange Fundamental.  In effect, it is the Golden Rule in reverse:  When I do something for you; you are obligated to do something in return for me.  Have you ever been on the receiving end of something nice and the giver says, “Now you owe me one!”  This is an example of the Exchange Fundamental.

Back in the day you might have encountered religious folks in white robes passing out flowers in the airport.  While it appeared to be a gift, an obligation to give something back was created.  The obligation could be paid in the form of money (donation) or your time to listen to their message.

We don’t always exchange cash or concrete things.  It’s really about the perceived value.  For example, when I volunteer to teach, a note of thanks afterwards means so much—it is an acknowledgement that I have given my time and shared my knowledge. The other day, I got a call from a seminar participant thanking me for some practical applications on profiling. This helped her build a positive relationship that will mean a lot of revenue for her company. That call brightened my day.  Likewise, when I give my son a cash ‘infusion’, his hug and ‘thanks, Dad’ means the world to me.

What happens if someone violates the Exchange Fundamental?  As we learn to mimic the behaviors we see on reality television, we may be tempted to take—but not give back.  Doing this risks being rejected by your peer group.  (We subconsciously keep score.) The exception to this is if you are dealing with someone of a higher status.  However, even a higher status person will find that people are less forthcoming as they begin to learn how he or she operates—all take and no give.  At some point, without adequate rewards, the giving on the part of the subordinate will stop—or the least, the quality will drop.

Pay it forward – The Exchange Fundamental gives us confidence that if I help others today, I can count on their help when I need it in the future.  In fact, we can even help people we do not know with the understanding that in our hour of need, there will be someone there to help us.  Carol Burnett, in an interview on William Shatner’s show, Raw Nerve, described how a California businessman invested in her career.  His stipulation was that if she made it big, she had to help others.  So she has set up numerous scholarships to pay back this debt.

So how does this apply to leasing apartments?  Offer gifts just for stopping by.  When you receive a gift, you feel obligated to do something in return.  Some examples include site-monogrammed key lariats at student housing fairs, inviting senior housing prospects to ice cream or pie socials, offering a Target or IKEA gift card as a close or participation in drawings ‘just for stopping by’. 

Consider the guest card exchange:  if you do not fill it out for your prospect, hand the guest card to them and say, “Let me get you a cup of coffee or bottle of water while you fill this out.”  (It’s most positive to lead with what you will do for them.)

If, at the end of the demonstration, you are unable to close your prospect, ask if they have any friends that are looking for housing.  Turn up the heat by offering a small referral bonus.  This creates the opportunity for you to leverage that relationship into a new relationship—and thereby make it easier to close a new sale.  The majority of prospects will search their minds for referrals in an effort to ‘even the Exchange score’.

Whether we are comfortable with it or not, there is a lot going on below the surface!  Take the time to understand how the Exchange Fundamental can work for you.  You will find that it positively impacts your closing ratio—and it will increase your network of friends and supporters as well!

Cheers!  Jim Baumgartner | Rent Soda

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What’s In a Name?

Feb 1st, 2011
by jameswb.
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I just came from working out at my gym.  Although I really shouldn’t call it a gym because it’s one of those shiny places with new equipment, wallpaper, carpet and amazing equipment.   Midway through my workout, they announced a special add-on membership deal through the end of the month.  They closed with an invitation to see a Membership Engagement Associate.

Say what?

My first thought was, “Is my gym offering matchmaking services?”

Nope.  A Membership Engagement Associate is a sales person.  Their job is to sell—in an engaging way I’m sure—memberships.

That got me thinking about a discussion I had a while back with a site Leasing Consultant (aka sales person).  We had just hired a corporate leasing consultant and given her the title of “Corporate Leasing Specialist” (aka sales person).  This caused envy amongst the ranks.  In fact the site Leasing Consultant with whom I was having the conversation had just had his business cards reprinted with the title “Leasing Specialist” under his name.  He was pretty stoked about it.  It struck me at the time that this simple title change had a hugely motivating impact.

Fast forward to a few weeks ago:  During participant introductions in a training class I led, a leasing consultant proudly announced her title (it was far grander than Leasing Consultant) and her company name.  Her pride struck a chord.  I had seen similar pride in other employees from that organization in the past.  The company is a good one but in her mind it is bigger than life!  Her employer has done a great job of naming the position, training the staff that fills their sales positions and creating an amazing sense of team.  The result of this has been an ability to close more Leases (sell) at a higher rate than their competitors.

How cool is that?

I don’t think that just the title resulted in all that.  However, using a cool title as a starting point, the company has built an entire culture that values their sales people.  This sense of value and esteem is reflected in all aspects of their work.  They are able to represent themselves as elite professionals to their customers which is reflected in several ways:  1) the sales people have greater confidence in themselves, 2) the customers have greater confidence in the sales people and 3) the customers have greater confidence in the product being sold.  It is a self-fulfilling prophecy that has resulted in a greater ability to close the sale.

So from now on, please refer to me as an Organizational Behavior Modification Advisor.

Cheers!  Jim Baumgartner | Rent Soda

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