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Anniversary Edition: To BE or not to BE?

tO bE OR nOT TO BE!

November 1st marks the 2nd anniversary for RENT SODA! Time flies when you’re having fun, and the past 2 years have been a BLAST. When I took the plunge to venture out on my own in 2009, it was:

  1. now or never
  2. sink or swim
  3. do or die
  4. all or nothing
  5. to be or not to be! (This last one is SOOO important!)
What terrible choices. What wonderful choices. What EXCITING choices. What dangers! What risks! My heart was beating FAST, ERADICALLY, I was scared > no terrified. I took a breathe, I took LOTS of deep breathes, and then…and THEN
…I made the decision, and on November 1st, I was on my own.

For the first time in my life, I was on my own.

Looking back, there really was no other choice. Eventually, all roads, all training, all experiences had led me to this road > the road where I I had to CHOOSE to create your my own path, my own way.

So, I chose.

And every day since, that little spark that drove me to dive off the deep end 2 years ago > continues to grow. The spark became a FIRE, then an obsession, until eventually, it consumed me. That spark, that light, that energy to create, to discover, to BE.

Shakespeare asks the question, “To be or not to be?

The answer is always, TO BE.

To be happy.

To be inquisitive.

To be driven.

To be passionate.

To be in love – with life, with love, with work.

To be able to make mistakes.

To be TOTALLY BADASS in every imaginable way.

To be me.

Thank you to all my clients who hire me to be ME. And all of you who read my blog, because I am ME. And for all those on facebook who “like” me for ME. And all those on twitter that follow ME. Thank you from the bottom of my heart for letting me BE.

PS. Mom, I know you’re reading, Thank you for having ME. For having me – as I am. And teaching me to BE.

tO bE OR nOT TO BE!

tO bE OR nOT TO BE! by Daisy Nguyen

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Facing Failure: Why Excuses Never Lease Apartments

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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Success Stories: Two Apartment Managers Who Started Small & Making A BIG Splash!

This is the first blog in a series of blogs that takes a closer look at success in the multi-family apartment industry – Who’s successful? Who’s Being promoted? How did they do it? and most importantly to YOU as the reader – can their stories help YOU become successful in your apartment industry career?

This blog examines:

Two SUCCESS Stories of Apartment Managers Who Started Small

and Currently Making a BIG Splash!

I interviewed Kate Heitzman of Greco Properties – General Manager at BLUE in Uptown Minneapolis, a 242 unit luxury market rate property and Toni Powell of Bigos Management – Community Manager at Calhoun Greenway also in Uptown Minneapolis, a 350 unit market rate property. Both management companies operate in Minnesota.

Q: How did you get your start in the apartment industry?


Above: Toni Powell of Bigos Management

Toni: By accident! I moved to the twin cities from St. Cloud. The apartment building I moved into didn’t have my apartment ready – they needed a manager, and there I was. It was a 40 unit 1st tier

Minneapolis suburb, class A property. Eventually, they asked me to take over a different 38 unit luxury townhouse project. I did. When my manager left, I asked to take over both properties. I was bored and I needed MORE. They didn’t think I would be able to handle both properties, but they gave it to me, and I made it work.

Above: Kate Heitzman of Greco Properties

Kate: I had always worked in retail management, and didn’t want it anymore. Once I had a kid, the hours didn’t work for me. I did my research and felt that as a single mom, property management would fit into my lifestyle. I applied for a full-time caretaker position at Laurel Village. As you may know, Laurel Village is one of the largest properties in the twin cities metro area with 720 units across 7 buildings spanning 3 city blocks in downtown Minneapolis. On a site this large – there’s a lot of miscellaneous stuff that needed to get done. THAT was me. It gave me a good introduction into property management – I’ve seen a lot and done ALOT. I’ve been surprised by people many times, and they STILL surprise me to this day! That’s property management for you – never a dull or predictable moment.

Q: How Long did you stay in your first property management job before you decided to move on? What made you decide to move on?

Toni: (I stayed with my first company)…for 3 years and then started to look for opportunities. I get bored REALLY easily, so I need to have challenges!

Kate: I was there (at Laurel Village) for 3.5 years. In the last year, I realized that I would definitely stay in property management, but I REALLY wanted to have my own property to manage. While I was at Laurel Village, I was promoted from Caretaker to Operations Assistant.

Daisy’s observations: It looks like for both Toni & Kate, stayed a decent amount of time with their first employers and learned as much as they could learn. As it does to many people I have talked to in the apartment industry, it HOOKS you, it gets in your blood, and then you’re left looking for MORE. They both wanted MORE > which is the catalyst that prompted them to look for the next step in their career. Interesting!

Q: Where did you go next? What did you decide to look for? How did you find your next job?

Toni: Another peer I networked with worked for Bigos and LOVED the company. So I found a job posting they had listed and interviewed with a Regional Manager at Bigos. I didn’t hear back from him! But I KNEW I wanted to work there (at Bigos), so I decided to call him once a week for 2 months. I had heard that the “word on the street” was that I was not a good fit for the property I had applied for, but I knew in my heart, I wanted to work for Bigos. My persistence DID pay off. Another Regional Manager at Bigos called me and offered me a job at Mallard Creek – 120 units in Golden Valley. It was a market rate, older property (20 years old) in a GREAT area.

Daisy: Here’s a woman who doesn’t take “no” for an answer!

Toni: I stayed at Mallard Creek for 3 years, and during that time, I handled a total rehabilitation of the property (interior and exterior) – it kept me challenged and I was constantly learning new things.

Kate: I started to look for opportunities where I could manage my own site, and saw an ad for a Section 8 property in Edina. It was 80 units spread across 4 different buildings – similar in set-up to Laurel Village, but that was where the similarities ended. It was MUCH different in size and demographics. I stayed there for 1.5 years – I worked hard, I did everything from ripping out carpet with my Maintenance guy, plunging toilets, to doing Section 8 paperwork. You name it, I did it. I’ve not only become pretty handy with tools, when I work with Maintenance, they respect me, as I’ve done many of the things they’ve done right alongside them. I learned everything I could about managing my own site, and my next opportunity was a larger site in Chanhassan – 162 units. I stayed there for a year before realizing I didn’t like being so far out. From there, I was contacted by someone I knew in the industry to manage a 290 unit property in St Louis Park. My sites kept getting bigger and bigger, my responsibilities grew, and I learned A LOT during this time!

Q: Why/How did you decide to go about finding your next opportunity?

Toni: I love working for Bigos. I have great managers/supervisors. I communicate with my supervisors that I want something new, and that I can get bored really easy. They always find ways to challenge me. I love new challenges. After Mallard Creek, when I started getting bored again, I started to apply to other openings in our company, but I didn’t get the positions I applied to. In hindsight, it was a GREAT decision both for myself and for Bigos – because I got to do all the things I did, learned a lot, then when I WAS ready, Bigos was there to challenge me. My next challenge was a 245 unit market rate property in Plymouth called Willow Creek – I stayed at Willow Creek for 1.5 years before applying for other challenges within the company. From Willow Creek, I was promoted to Shadow Hills, a 322 unit market rate property – we won property excellence last year at the MADACS – this property is one that I consider my biggest challenge and triumph so far! I’ve been with Shadow Hills now for exactly 12 months, and just when I thought I might get bored, along comes another challenge. (At the time of the interview) – Next month, I will be transferring to a Calhoun Greenway. This is in Uptown – I’ve always been in the first tier suburbs. This will be a whole new area and demographic for me. This is a new acquisition and total rehab of 350 units. It’ll be totally different than anything I’ve done, its different clientele, different location, with lots of moving parts. I’m going to LOVE it.

Kate: Working in the suburbs, I realized I missed the hustle bustle of a densely populated urban area. I knew I wanted to either return to downtown or uptown in Minneapolis. I began networking with people I knew, putting my feelers out for opportunities that met my need. I now had experience, so I didn’t want to go just anywhere. I wanted to find the right match for me & my family. I knew what I wanted, and I was willing to be patient and look for the right opportunity. That’s when I heard about Greco Properties and their new project in Uptown Minneapolis, called Blue. 242 units of luxury market rate apartments in Uptown. This was a new project with a new lease-up – something I had never done, but couldn’t wait to do.

Q: What are the biggest challenges going from a smaller property to bigger properties?

Toni: It wasn’t much different. The more units you had, the more people you have to get everything done. For me it wasn’t a change. You just learn to manage and increase your employee base, and work on larger numbers when thinking about resident retention. The challenges in property management are the same from a small property to a large property – those challenges are resident relations, turnover, staff moral (especially with management company transitions), and the most challenging of all, but also the most rewarding – is to take a property over from another management company and bring it up to the Bigos standard of excellence. We have a standard of excellence – both with apartment residents and employees. Sometimes making those changes can be tough – but in the end, it’s good for everyone.

Kate: The biggest challenge is all the things you don’t know. But just know that its trial & error, and if you’re smart, you can figure it out quickly. The biggest challenge for me is to know what I want out of a job/career. It’s taken me a couple of years of experience to find my niche – find what I liked, what I don’t like, what I am good at, what I am not so good at and find a company who wants me for all the things I do well. There’s a lot of variety out there, and lots of availability. There’s a job, career, company for everyone. You have to find the right property and right management company for you.

Q: What do you think has played the biggest role in your success – what would you advise others to look for/do to become successful?

Toni: The thing with Bigos is that they’re a big, smartly run company. There’s always another opportunity to do something new. They’ve been a HUGE part of my success. They support their people, they provide education, they have opportunities – it’s a culture of cultivation. Bigos has promoted and moved people within the organization – which has been a HUGE part of my learning, growth and success.

I also advise others to communicate with their supervisors about their long term and short term career goals as well as what you’re good at, and what you want. I’ve always communicated to my supervisors what I want next, let them know I BELIEVE I can get it done. I’ve let them know that I can get bored easily and I need to have new challenges. I have been lucky to have supervisors and managers that listen and utilize me to the best of my abilities.

Kate: Ask A LOT of questions, get to know your peers in the industry, go to the MADACS & other MHA functions, attend networking functions that are offered in the industry to get to know everyone and what’s out there. It’s a big industry, but at the same time, it’s SMALL – you know? You can get to know people, network with them, help them out, treat your vendors well, etc.

I also recommend that everyone get to know themselves and what they want. For me, I have always looked for smaller, more hands-on management companies where they know you personally and where you’re not just another employee. It’s more family oriented. Where you feel like your suggestions and voice is heard – where they DO listen and implement your suggestions. I found out what I wanted through my journey and when I looked for opportunities, I paid attention to what made sense to me – what I wanted out of a management company. When I’ve found the right management company – I am able and allowed to be successful.

Daisy’s observations: Both women were high energy, go-getters. Both started relatively small, and grew their success from there. One went the path of a large management company, and the other went the path of picking smaller management companies with the right opportunities that met her needs. The thing that struck me about BOTH of them is that they both KNEW themselves well – knew what they wanted, knew what they were good at, and knew what they were looking for. I talk to A LOT of people – there are MORE people that are confused about who they are and what they want to do than there are people who KNOW themselves. These women KNEW themselves. This is part of their success.

Something not noted in the blog, but I want to mention, is that both Kate & Toni talked extensively about their team and resident strategies. It is clear that both liked working with people, and both women valued working in teams, as well as valued their teams.

It is our hope that through our SUCCESS STORIES series, you, the reader, will find new inspirations, new ideas, new ways of becoming successful. Our next SUCCESS STORIES blog will be focusing on individuals who have been successful making a transition from being a vendor in the apartment industry to working at a property management company.

Are you at a small apartment community manager or leasing agent with goals to work your way up? Have you worked your way up and have additional tips to add on what it’s done, and how to be successful at moving towards larger goals? Leave us a comment and share with the readers!

Don’t GET IT? RENT SODA! GET IT!

-Daisy Nguyen in Minneapolis, Minnesota MN

CEO/President

RENTSODA-small

Offering Apartment Marketing, Apartment Business & Operations Consulting & Apartment Leasing Training

Web: RentSoda.com Email: Daisy {at} RentSoda(.)com

Become a fan of RENTSODA on facebook.  Connect with RENTSODA on LinkedIn!

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Building on Your Strengths: Build Success

I have learned to hate reviews.  Not so much the receiving of them (although I have had some surprises in my time—and there really should be no surprises in a good review) but the preparing and reviewing of them.  All too often all of the energy is devoted towards highlighting weaknesses—or in an effort to warm things up a bit: “Areas for Improvement”.  There may be 17 ‘Excellents’ out of 20 categories but the majority of space will be devoted to the three categories that are not excellent.

Why can’t we be more like pro-football?

Why can’t we focus and further develop our strengths?  If you have someone naturally gifted in marketing, why would you ask them to devote their time to budgeting?  If you have an administrative guru, why would you be upset that their closing ratio is below the company average?  (Here I have to confess that the idea for this blog came while listening to my co-instructor, Michael Monroe Kiefer (www.powermindtraining.com), teaching a segment on Personality Styles, a profile assessment tool.  But more on that later.) 

Now I realize that we don’t have NFL-sized budgets; however, does it make sense to hire the right strength for the job, and then find other ‘right’ strengths for the jobs around them?

Often when we talk about someone’s strengths, they may look surprised and think, “Well, everyone does that.”  We tend to minimize the things that we love to do or find easy.  And yet, wouldn’t we be happier if we could spend all of our time doing the things we love?

How do you assess your strengths?

  1. Send an e-mail to your family, friends and coworkers asking what they perceive to be your strengths.  People tend to be more ‘real’ when they cannot see your reaction.  The benefit of asking people from different areas of your life is that they will give you a broader perspective on how you are perceived. When you get their responses you can take this information and cut and paste it into a single action plan. 
  2. Review your review.  Is there anything your supervisors have consistently said?  Do you see a pattern of strengths and weaknesses?  (Have you noticed that it is much easier to see other people’s strengths and weaknesses?)
  3. Take a personality profile assessment.  DiSC is one assessment that is inexpensive and can be done on-line in twenty minutes or so.  As I mentioned earlier, Michael Monroe Kiefer is a huge proponent of focusing on your strengths and offers a profiling analysis geared towards a better understanding of your customers and co-workers and is geared towards understanding how best to communicate with them.  You will discover that we have a lot of subconscious preferences. The results will help you understand your behavior as well as appreciate your coworkers’ differences.
  4. What activities entice you to come back?  Generally our strengths include those things that we are drawn to, get lost in or make you feel good.  (Conversely, your weaknesses are things that leave you feeling small and depleted.)   Think about the days when you come home charged up and excited.  What tasks were you performing that day?  Conversely, think about the days when you have come home wiped out and drained.

Play to your strengths | Compensate for weaknesses

If you find yourself in a situation where your job requires you to devote time to an area of weakness, create a personal development plan to improve these areas.  (How do you determine if something is an area of weakness?  Tasks that you ignore, delay, procrastinate, try to hide or are uncomfortable discussing are areas of weakness.)  Where possible, delegate any areas of weakness (e.g. budgeting, scheduling, ordering or reviewing financial line items) to someone on your team better suited to the task.  Bring your team in on the exercise.  Explain that everyone on the team has strengths and weaknesses and that you want to assign tasks based on what each person does best.  P. Alex Linley and Susan Harrington discuss this concept in an article in The Psychologist

“By exploring each individual’s pattern of strengths, the emphasis becomes one of optimising what people are best at, while recognising and managing those situations that they may not handle naturally well, and addressing these through appropriate job allocation, complementary partnering, or strengths-based team working, rather than trying perennially to ‘address their weaknesses’ and rectify the fact that people may have been put in the wrong job to begin with.” 

By discussing it as a team, you can brainstorm optimal task assignments and create employee buy-in at the same time.

Building a new team?  Even better!  Take this opportunity to hire for your weaknesses.  All too often we hire people like us.  Resist that temptation and hire a team to balance you out.  Their strengths will supercharge your career! 

That doesn’t mean we totally ignore our weaknesses however.  Linley and Harrington add:

Overall, a strengths-based formula for organisational success would be to play to your strengths (through identifying them and finding a role that is congruent with them), develop your competencies (through ensuring that you are at least minimally effective in critical areas of the job), and manage your weaknesses (through job redesign, complementary partnering, or strengths-based team working).

We tend to spend a lot of time and energy dwelling on our weaknesses.  As in most investments (and shouldn’t our development head up the list of our own investments) apply the 80-20 rule.  Spend 80% of your time making use of your key strengths and 20% of your time developing your weaknesses.

So stop spending so much energy on your weaknesses.  Play to your strengths and focus on what you love.  Life will be much better!

Cheers!  Jim Baumgartner | Rent Soda

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The Power of Happy: 10 Tips to Improve Your Mood!

I spend a lot of time talking about maintaining a positive attitude.  But recently several  people shared that they are going through really hard times:  a sick loved one without health insurance, a partner without work creating money problems or insecurity over employment. 

There are times when life can overwhelm our happiness.  How do we maintain happiness in the face of overwhelming negative circumstances?

Benjamin Franklin said “The Constitution only guarantees the American people the right to pursue happiness.  You have to catch it yourself.” 

So how do we catch it?

  1. Attitude change.  Many scientists theorize that we have the power to catch happiness.  In fact, often we are the cause of our own unhappiness.  How often do we take the negative spin on an event—be it an election, a co-worker’s action or a series of red lights.  When you feel a rush of negativity stop and ask yourself what the positive side of the event is.
  2. Watch your self talk—the majority of what we tell ourselves is negative.  Self talk is the chatter that goes on inside ourselves; it is how we talk to ourselves.  Know that you can handle everything that comes your way.  When you own this attitude and learn to trust your ability, you will see these difficult situations as a challenge instead of as a threat.  Do your thoughts make you happy?
  3. Practice gratitude.  When I feel a funk coming on, I stop and start listing all of the things that make me thankful—no matter how small.  I am amazed at how quickly I snap out of it.  No matter how bleak the horizon, I always discover that I have a long list.
  4. So life isn’t fair—or is it?  Several years ago my brother pointed to a neighbor’s beautiful house with two luxury cars parked in the drive and commented, “They are golden.  Nothing bad has ever happened to them.”  I suspect that we all have trials and tribulations that will make us who we are supposed to become.  Some of us had our ‘classes’ early; others will have to go to summer school.  If you are going through a trial right now, ask yourself, “Okay, what am I supposed to learn from this” and then get the lesson done!  Who wants a retest?
  5. I am responsible for my HAPPY!  Own it.  The next big promotion, gift, etc. will not make you happy.  If you are not happy now, no job, thing or person will make you happy.  What can you do for yourself that will enhance your happiness?
  6. Live in the now.  There has been a lot of writing about practicing mindfulness and living in the now.  It really is powerful.  Let tomorrow unfold and quit worrying about what you didn’t do or what you did to screw up today.  We always have a second chance, you can’t change the past, enjoy today and tomorrow will unfold.
  7. Think of others.  Get out of our head and focus on someone else.  Helping others puts your problems in perspective and increases your happiness.
  8. Find meaning in your life.  What gives you purpose?  People who are strongly spiritual are better able to cope with difficulties and are generally happier.
  9. Expect the best.  You get what you expect.  If you expect the worst you will rarely be disappointed.
  10. Be kind to yourself.  Practice some good habits: 
    1. Get enough sleep.  Most of us cheat our sleep to get more done.  However, our lack of sleep often impedes quick or quality work.
    2. Find something to laugh at.  Researchers at the University of California did a study in which a group of men watched a funny video.  Their levels of stress hormones dropped significantly while their pleasure-inducing endorphin levels rose 27 percent and growth hormone levels rose 87 percent.
    3. Do one thing at a time.  Most of us are proud of our ability to multi task; however, studies show that this increases our blood pressure.
    4. Say no to activities that you do not enjoy.  This will relieve you of the added stress and free up more time to do what makes you happy.
    5. Build and participate in community.  Numerous studies have shown that those of us with an active social circle are happier and more fulfilled.
    6. Minimized the ‘little boxes’ in your life.  My friend, Theresa Rose (http://www.theresarose.net), talks about getting rid of life’s time-wasters:  television, cell phones, computers, video games, etc.  Not only do these things sap your energy (she refers to them as ‘Mojo-busters’), they rob you of your most precious gift:  time.  (And while you are at it, skip the news for a while.  Have you ever noticed what a downer that is?)
    7. Breathe deeply and get outside:  bike, hike or garden.  If you have a dog, walk it.  Did you know that pets buffer stress better than spouses do?  Aromatherapy can be beneficial too.  (Rosemary makes you more alert and lowers your anxiety.  Lavender increases the brain waves that indicate heightened relaxation.)
    8. Do things to reduce stress in your life (exercise, expressing creativity, maintaining supportive friendships, keep an organized home—a refuge or safe place, etc.)

We know that maintaining a positive attitude is important.  Take some time to soak in some of these tips so you can avoid falling into a negative funk.  A bad attitude will cost you money, relationships and time.  Don’t be like the author Colette who said, “What a wonderful life I’ve had!  I only wish I’d realized it sooner.”

Cheers!  Jim Baumgartner | Rent Soda

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Motivating Your Employees in a Stressful Economy: Seven Tips to Building Team

It is ironic that a lot of positive things have come out of the downturn in the economy.  We have focused more on cutting costs, built stronger relationships through social media, increased customer service initiatives and strengthened our skills.  However, one of the negative outcomes has been a tendency to take staff for granted.  There has been a trend towards seeing employees as a commodity that can be cut—in quantity as well as compensation.

Cutting employee costs is an understandable reaction to an economic downturn.  However, will this serve us best in the long run?  This trend creates two areas of concern:

  1. Disgruntled employees feel abused and unappreciated.  They pass this attitude on to our customers.  In a competitive climate, is this the front-line environment we want to create?
  2. Demographic trends indicate that we will be facing a shortage of talented experts in the future.  As the employment market starts to loosen up, our top talent may be easily wooed away to other jobs promising greater appreciation and rewards—both monetary and emotional.

How do we keep our team motivated and happy to be working with us?  We do not have extra cash budgeted—but it’s not always about the pay.  In fact, most of the time that is not the most motivating factor in retaining excellent employees and motivating them to excellence.

A few tips to help you motivate your team:

  1. “Please” and “thank you”.  Take time to remember the manners your mama taught you!  Being thoughtful, courteous and polite goes a long way.
  2. Set aside time to listen to your team members:
    1. Concerns – what is working; what is not?  Your front-line team has insights you could only dream about.  This is a great opportunity to gather expert advice.
    2. Ideas – Whenever you are feeling stuck, sit down with your team.  You will be amazed at the ideas they will give you.
    3. Give clear direction and expectations—as an employee, one of the most frustrating experiences is not receiving clear work direction.  Have you outlined the company’s goals and each team member’s contribution to that effort?  I once had a supervisor who gave conflicting work expectations.  Continually changing directions made my efforts feel futile and hampered progress.  I felt like a puppy unsure of whether to come or go.  I ended up going.
    4. Firm but fair—favoritism will kill a positive environment.  Employees find great comfort in knowing exactly how you will react and that your response will be consistent.
    5. Share the good jobs – don’t just delegate the ‘icky’ stuff.
    6. Bring your team in on decisions.
      1. Brainstorming and ideation—holding a brainstorming meeting allows for a free flow of ideas.  You will be amazed at some of the revolutionary concepts that emerge.  This also makes each team member feel like they are part of the creation process.
      2. Meetings—openly discuss concerns and issues in meetings. Invite feedback and team member contribution.  Take the time to listen and consider input.
      3. Creates ownership—When you have involved team members in the process from ideation to decision, they feel as though they have a stake in the successful outcome of that decision.
      4. Publicly praise—did one of your team members do something very, very right?  Praise in front of peers and the big boss.  This praise will go a long way. When we were inexperienced supervisors we thought we had to find and own all the kudos we could!  However, in reality a superstar team reflects a superstar boss. 

Celebrate your staff!  Taking the time to tune in to them will pay dividends:  increased sales, improved retention and a positive working environment.  And you might even find that going to work is more fun!

Cheers!  Jim Baumgartner | Rent Soda

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#1 Most Important TIP for Apartment Resident Retention

With so many choices available, the price competitiveness of the market, and concessions still a tool that lots of apartment communities still use to entice renters, the best way to control vacancy loss is to close that back door – retain your existing residents. What’s the most important thing you can do to increase resident retention and lower your resident turnover?

Here’s my #1 most important tip I can give you regarding your resident retention plan: RESPECT your residents and genuinely APPRECIATE their business. OK, so maybe that’s 2 tips – just consider it my two-for-one tip deal!

The reality is, no matter what the rent is, whether its $500.00/month, or $5000.00 a month, its likely the BIGGEST check your resident writes every month. Find ways to let your residents know you respect and appreciate them as residents of your apartment community! If you can find ways to show them you respect and apprecaite your them as residents, the higher your likelihood of turning them into life-long residents!

This may sound like an easy no-brainer, but the reality is, it is so easy to forget – it is something you have to work actively to remember and practice.

When I work on affordable communities, I am always amazed at the amount of complaining I hear in the site staff – they can’t identify with the residents – they find it hard to believe that anyone would live at ABC DUMP apartments, they complain about how small the units are, and its common for me to hear, “I could NEVER live in a place like this!” They frown upon the community of hard working adults – the same community that pays their paycheck! This kind of attitude rubs off, and can be felt by your residents.

My 17 year old son, Alex, recently bought his first car. He had been working and saving up for the past 3 years and had saved up $6000.00. To a cars salesman, $6000.00 is probably one of the smaller deals that he can land in a week. But, to my son Alex, he wasn’t thinking, “Gosh, I’m going to buy the cheapest, crappiest card I can find on the lot,” he was thinking, “I am going to find the best looking, biggest value I can find!”

No one intends to be cheap or settle for anything less than the best – its whatever they can comfortably afford.

Another way to look at this: If you were to go into a retail store month after month and write them a check for the same amount as you typically spend on your monthly rent – how would that store treat you?

Whether you are in the Nordstrom’s shoe department income bracket, or the PAYLESS Shoes store income bracket, I am willing to bet the sales person who helps you out every month will learn to love and appreciate your business.  How would they do this? I’m also willing to bet they would know your name, know your preferences, make it convenient and easy for you to shop at their store, accommodate your needs, and thank you each and every time you make a purchase.

In our industry, we are so used to getting a monthly rent check from our residents, its so easy and convenient to forget to do simple things like remember everyone’s name, be helpful, find ways to make it convenient for your residents to live in your apartment community, make it easy for them to LIVE at your apartment community, or even say THANK YOU every month! – At times, I see the exact opposite behavior in our community offices – our residents walk in, and we ask them to wait, we look up – irritated that they interrupted the time we had set aside to do paperwork, they tell us about a leaky faucet – and we ask them to call a designated number for service requests, we charge for such easy conveniences as faxes and holding packages, we receive the rent check in a drop box, and never say THANK YOU – we do everything to practically show them the door out.

Is this how you want to be treated when you are writing the biggest check you can possibly afford to write every month? Would you continue to live there?

How do you show your residents how much you respect and appreciate their business?

Don’t GET IT? RENT SODA! GET IT!

-Daisy Nguyen in Minneapolis, Minnesota MN

CEO/President

RENTSODA-small

Offering Apartment Marketing, Apartment Business & Operations Consulting & Apartment Industry Training

Web: RentSoda.com Email: Daisy {at} RentSoda(.)com

Become a fan of RENTSODA on facebook.  Connect with RENTSODA on LinkedIn!

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Leasing Agent Compensation?…First a word about VACANCY!

As a consultant to the apartment industry, I am asked a LOT, “What’s fair leasing agent compensation? Is their a leasing commission structure you would recommend?”

There is no easy or short answer to this question, so let’s take a round about way of discuss it, and then my next article will zoom RIGHT into what I recommend.

I find it a little backwards when people want to know what OTHER properties or OTHER management companies are doing when it comes to leasing agent compensation. I never say it out loud, but I’m always thinking, “What’s it worth to YOU?” (as owner/manager) AND, “What’s it worth to THEM?” (your leasing agent/leasing specialist)  What do I mean by that?

FIRST, let’s first talk about the REAL problem – VACANCY.

I don’t have a vacancy problem!

Well, then, you shouldn’t worry about leasing agent compensation then!

OK, OK. Let’s talk about vacancy…

TO make it easy, let’s say we’re talking about ABC Apartments. They have 100 units. Their average rents are $1000.00/unit.

Prior to the rental market taking a downward turn, ABC Apartments has been running along great, apartments never took very long to lease, and they had been at 97% occupancy for many years.

Fast forward to today, they are at 88% physical occupancy, which means they are at 12% vacancy. All of the sudden, they are struggling with just staying ahead of the renewals and turnover. Increasing the occupancy in the midst of the resident turnover looks very daunting.

Let’s do the math.

At 97% occupancy, the vacancy loss is:

(Average Rents) x (# of Vacant Units)

$1000.00 x 3 vacant units = $3000.00 of vacancy loss monthly. This is what they are used to operating at. Annually (x12), this amounts to $36,000.00 of annual vacancy loss.

TODAY, at 88% occupancy, the vacancy loss is:

$1000.00 x 12 vacant units = $12,000.00 of vacancy loss monthly. Annually (x12), this amounts to $144,000.00.

The different in vacancy loss monthly is $9000.00! ($12,000 – $3000) And annually, the difference is $108,000.00! ($144,000 – $36,000)

How much does the $108,000.00 mean to the site? The Owner/Investors? The manager? Now that we have things in perspective, it brings up a WHOLE bunch of other questions, like:

  1. Do you have the right staff in place? If your maintenance guy is doing showings – you may have a problem.
  2. Do you have a plan in place for resident retention? If you have vacancy problems, you HAVE to have a plan in place to close the back door to your vacancy problem.
  3. Is your staff properly trained? Not just in customer service, but in closing on leases?
  4. Is your staff properly motivated and positioned to succeed? (This question leads into the real TOPIC: What’s a fair Leasing Agent compensation package?

Do you have other questions? Other considerations? Leave me a comment in the COMMENTS section!

My next blog article, will discuss different leasing compensation programs, and how to pick what works best for you, your site, and your staff.

Don’t GET IT? RENT SODA! GET IT!

-Daisy Nguyen in Minneapolis, Minnesota MN

CEO/President

RENTSODA-small

Business, Operations & Marketing Consulting to the Apartment Industry

Web: RentSoda.com Email: Daisy {at} RentSoda(.)com

Become a fan of RENTSODA on facebook.  Connect with RENTSODA on LinkedIn!

Follow RENTSODA on Twitter!

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New to the Apartment Industry/Job/Career? 4 Stages to an Epiphany!

Are you new to the apartment industry? New to your employer? New career? New promotion? On a new project? There are 4 stages that every NEWBIE goes through before becoming comfortable in the new position.

When I first started at Dominium Management Services several years ago, I was lucky enough to take a class called “Managing for New Managers,” taught by a wonderful human resources mentor named Claudia. I took away a few lessons from that class, that not only helped me in my new job - I still remember those tips to this day and pass along this info to all newbies I meet!

Before we get started, I first want to mention for anyone who is new to the apartment industry: CONGRATS! You have just joined the most exciting, most demanding, most fun, most fullfilling, most intelligent, most rewarding industry – EVER! If your manager hasn’t prepared you, I’m preparing you now:

4 Stages to an Epiphany in the Apartment Industry

  1. STAGE 1: UNCONSCIOUSLY INCOMPETENT: You read it right. INCOMPETENT. In this stage, you’re feeling good. You just landed a job – especially in this economy, this is quite a feat! You beat out the hundreds of other applicants and you were chosen as the best fit for the job. CONGRATS! You’re being introduced to everyone, your resume is being passed around, people are oohing and ahhing. Everyone LOVES  you and can’t wait for you to get started. YOU can’t wait to get started! You feel important, after all, you’re working for ABC Apartments/ABC Management Company and they own millions worth in real estate. The honeymoon’s just begun. This feeling can last anywhere from a week to a month before you head into…
  2. STAGE 2: CONSCIOUSLY INCOMPETANT: This is when you start to feel a little insecure. There’s SOOOO much to learn! You’ve just started to realize you are in charge of this multi-million dollar asset, and no one’s ever trusted you with even $100 before, let alone an asset worth millions! Then there’s Fair Housing – oh my! They expect you to market, lease, understand financials, manage people, respond to residents, live on site, deal with maintenance issues, vacuum on occasion, AND all with a smile, please and a thank you. Budgets? Maintenance? HAP? HUD?  OOOOOHHHHH MY. You’re ready to pull your hair out and rethink this whole new industry, whole new career, whole new job thing. BUT STOP! This stage is perfectly NORMAL. I tell ALL new job applicants, and all new hires, give it 90 days, and if you don’t feel better by the end of 90 days, let’s have a serious talk. The good news is, EVERYONE goes through this, it’s perfectly normal, and it WILL get better. I’ve done takeovers where I’ve had people cry in my office because of how overwhelming it is – and they’re not use to the chaos of change. Give it 90 days, and those same people are skipping, having a good old time, and thanking me for letting them know – IT’s OK. This stage usually lasts anywhere from 90-120 days, with some relief right around 90 days.
  3. STAGE 3: CONSCIOUSLY COMPETENT: At this stage, you’re starting to GET IT now. It’s not easy, but you know where to find the answers, and you’re starting to kind of like the job/industry/career! You understand what your job entails, and you’re starting to understand not only where you fit into the equation, but the whole bigger equation of the APARTMENT industry. Things that seemed like a foreign language to you, terms like, gross potential rent, RUBS, HAP, HUD, NOI, cost per lease, marketing cost per unit, traffic, replacement reserves, Yardi, MRI, multi-family residential – terms once alien, are starting to roll off your tongue. Things that used to bother you (residents coming into your office and interrupting your line of thought, vendors vying for your time, overly dramatic leasing agents, non-communicative maintenance technicians, etc.)  – are now an everyday part of your life. You’re drinking the koolaid, and it’s starting to taste good. You see light at the end of the tunnel, and you contemplate taking a day off – soon.
  4. STAGE 4: CONSCIOUSLY COMPETENT: EPIPHANY! Then one day, all the sudden, you’re walking along, multi-tasking with your blackberry in one hand, maintenance work orders in the other hand, picking up trash/stuffing it your pockets, and just as you round the corner, your leasing agent and maintenance guy are waiting with an angry resident in tow. You have 10 minutes to compose yourself and your office before your apartment owners/asset manager/big-wigs come for their annual visit. You smile, look at your crew, and say, “What a beautiful day outside. Let’s talk about what’s bothering you so you can enjoy the rest of the morning!” An epiphany hits and you realize, I LOVE this crazy industry/job/career, and if not for the variety, people, experiences, life could be SOOOO boring! I’m GETTING IT! WHOOHOO!

Loss of new hires usually occurs at STAGE 2. Before you give up or before you allow YOUR new hire to give up! Realize, IT’s OK. Give it time, and you’ll GET IT.

Since I’ve started to tell every new employee I hire about these stages and open the door for honest discussion, give them permission and encourage them to vent to me during STAGE 2, my employee turnover has dropped significantly. In addition – those people will come vent, talk and sometimes cry in my office – but 90 days later, they are laughing with me, hugging me, and asking for new projects and challenges. I LOVE this crazy apartment industry!

Don’t GET IT? RENT SODA! GET IT!

-Daisy Nguyen in Minneapolis, Minnesota MN

CEO/President

RENTSODA-small

Business, Operations & Marketing Consulting to the Apartment Industry

Web: RentSoda.com Email: Daisy {at} RentSoda(.)com

Become a fan of RENTSODA on facebook.  Connect with RENTSODA on LinkedIn!

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GET OUT of HERE! How To GET IT When You’re In A Rut

It can be hard to always be ON. It can be hard to GET IT all the time. Whether that means being CREATIVE, ENERGETIC, FRESH, SUNNY, SOCIAL, PATIENT, or POSITIVE. When you go to the same office (apartment complex/corporate office/etc.) everyday, talk to the same people every day, or drink the same kool-aid every day, you can get into a rut. All of the sudden, you don’t get it anymore! You are in a perpetual Ground Hog Day movie. From there it’s downhill – you become bored, you question your career choice, you drag you feet, you complain, and you become reactive rather than proactive. Next thing you know, you’re blaming others for you lack of motivation and not taking responsibility for your predicament. What stage of this slippery slope are you in? Does this sound familiar? Just coming back from the National Apartment Association (NAA) Education Conference, my brain if overflowing with ideas, there is an extra hoppity skip in my step, my fingers are flying over the keyboard at lightening speed, and images of sugar plums are dancing through my head. Seriously, I am just electric right now! I am once again reminded that a change of scenery, meeting new people, listening to new ideas, being reminded of great old ideas, making new friends, and having FUN – can do WONDERS for your creativity, productivity and energy level. If you have the opportunity, I HIGHLY recommend attending conferences in your area of expertise/interest and surrounding yourself by this type of energy. It can be a national conference, or a local conference. Don’t just ATTEND – fully IMMERSE yourself into the middle of all that positive activity, fully ENGAGE and SOAK up as much as your head and your heart can handle. It does wonders for productivity!

And if you can’t attend a conference or two here and there – create your own opportunities to feel excitement. Leave your office for 30 minutes (when you can of course) and immerse yourself into something TOTALLY different, have lunch with a colleague, look at art, eat something mouth watering, go to the gym, or do whatever it takes to get your heart pumping and energy level up. Feel ALIVE, and watch how “work, work, work…” becomes “fun, fun, fun!”

If you’re a cynic and this sounds like too much work for you, too far out, or <insert your excuse here> , here are my favorite quick fixes to get out of a rut:

Want to get motivated? Check out Gary Vaynerchuk CRUSHES it! …here’s a short excerp, “…There’s no reason to do SH*T you hate…you can loose just as much money being happy as hell!” httpv://www.youtube.com/watch?v=EhqZ0RU95d4

Check out this little girl in How To Stay Positive…here’s a short excerp, “…I like my WHOLE house…I can do anything good…better than anyone.” Not only does this one make me feel good, but if a 4 year old can do it, so can I! httpv://www.youtube.com/watch?v=qR3rK0kZFkg

I Want To Be a Billionaire – Travie McCoyMusic Video - forget about the profanity, but this song just makes me snap my fingers and skip along no matter what’s going on! httpv://www.youtube.com/watch?v=8aRor905cCw

I have several exciting blog posts coming out of this my trip to NAA in NOLA – watch for them to follow shortly. I’m TOTALLY pumped. Are you?

Don’t GET IT? RENT SODA! GET IT!

-Daisy Nguyen in Minneapolis, Minnesota MN

CEO

RENTSODA-small

Business, Operations & Marketing Consulting to the Apartment Industry

Web: RentSoda.com   Email: Daisy {at} RentSoda(.)com

Become a fan of RENTSODA on facebook.  Connect with RENTSODA on LinkedIn!

Follow RENTSODA on Twitter!

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