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Jim Baumgartner

Renting to Students: 4 Steps to Marketing to College “Renters-in-Training”.

Jan 28th, 2011
by jameswb.
2 comments

As we near the end of January, if you rent to college students it is time to make sure you are geared up to rent your September 2011 availability. 

What?!  Already?

Absolutely, this is a demographic that is focused on finding and locking in the best apartment for Fall Semester.  At this point, they are considering who their roommates will be, what they want in housing for next year (party place, jock dorm or library) and where the best location will be. 

Step One:  Determine who will be renewing and who will be vacating.  You need your availability as soon as possible.  Many students want to finalize their housing before finals (as early as April).  (Ideally, you can build this language into your Lease.  If it is not in your current Lease, make sure to add it at renewal.  In the meantime, offer an incentive for current residents to renew or give notice early so you can get the apartment re-rented.)

Step Two:  Let people know—Advertise.  Once you know how many apartments you will have available for the new school year, determine what your closing ratio is and therefore how much traffic you have to generate.  Ideally you will get a lot of traffic through Craigslist.  However, you should also send flyers, post on your Facebook page, e-mail blast, etc. your current residents offering a refer-a-friend special.  In addition, advertise in the student newspaper/web site.  Also, speak with the student affairs offices to let them know you have availability and ask them to refer students to you.  Find out when any housing fairs are taking place so you can participate.  Make sure a banner is on the building (where municipal codes allow) letting prospects know you are renting–and how they can find out more about you.  If you have the ability to text for information or instant message, this is a great resource for students.  Remember, this is a very tech-savvy demographic.

Step Three:  Understand your market.  Student housing can be a challenge because you are marketing to students (“Where’s the party!”) and parents (“You’ll keep my baby safe, won’t you?”)  You will have parents touring with their off-spring.  Therefore you have to market to both.  Remember the parental hot-buttons:  safety, security, well-lit common areas, consistent management and for you to protect their babies.  Now consider student hot-buttons:  Close to campus, fun, a place to meet potential dates, exercise room, bike storage and privacy.

Step Four:  Make sure your Lease and paperwork are ready:

Deposit amount:   Are you renting by the bedroom or by the entire unit?  With student housing it can be a helpful marketing tool to break it down into cost per occupant.  You may be able to push your rental rates because $400 per occupant (assuming four occupants) doesn’t sound as expensive as $1,600 for the unit.  If you have been in business for a while, review what your average damage charges have been at lease-end and charge that amount.  If you are new, look at what your comps are charging. 

Lease considerations: 

If you are new to student housing, make sure you have the ability for parents to co-sign the Lease.  Students have no rental history so they are difficult to qualify.  In addition, if the parents are on the Lease, you can contact them if issues come up.  Make sure your screening is consistent.

Clarify that each person on the Lease for any given apartment are responsible for the entire rent (‘jointly and severally’).  This is helpful when the inevitable roommate disputes arise.  Consider offering roommate referrals—pairing people to alleviate the fear of being left holding the bag for the entire rent amount.  (However, due to liability concerns make sure there is an understanding that you are making no guarantees.)

One complaint of student housing is that it is often a seasonal business.  Make sure to specify that you allow only one year Leases.  In this way they start at the beginning of the school year and end right before the next school year begins.  (This does make turnovers a challenge; however, your owner will appreciate the revenue.)  Determine if you are comfortable with your residents subletting to summer students.  If you are a high-demand property in a high demand location, you can have stricter guidelines.  If you are on the periphery (aka ‘location-challenged’) or in a new lease-up, you may want to reconsider that.

Policies and Procedures:  Students are very impressionable.  As ‘Renters-in-Training’, remind them that they are creating their credit and landlord histories from this time forward.  Many will understand that their behavior will have results in the future.  Others will not (see notes about parents co-signing above!)  Let them know up-front what your expectations are.  Make sure to cover what is and is not acceptable behavior.  For instance, there will be parties; make sure your language addresses parking and how many people are allowed to visit an apartment.

Renting to students can be fun and rewarding.  They bring great energy to your world too.  Follow these basic steps and you will be geared up to have a positive ‘higher education’ experience!

Cheers!  Jim Baumgartner | Rent Soda

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The heART of the Deal | Lessons in Management: The Dynamics of Relationship

Jan 11th, 2011
by jameswb.
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Life has a way of dropping needed messages in our laps that, when pieced together, bring new insight. The news of another shooting spree came after I had finished teaching a management class where we had discussed Transactional Analysis (basically the study of interactions—or ‘transactions’—between people) and its impact on our relationships with internal and external customers. 

Transactional Analysis is a method of understanding human behavior and interactions—a concept discovered and popularized by Dr. Eric Berne in his book The Games People Play.  His work was carried forward by one of his students, Dr. Thomas Harris (the author of I’m Okay – You’re Okay).  Dr. Harris outlines four positions of ‘Okayness’.  The shooter in Tucson was a classic example of “I’m not okay – you’re not okay”.

Before delving into ‘Okayness’ and its impact on our internal and external customers, we need a firmer understanding of the background of Transactional Analysis.

Ego States:  The Foundations of Transactional Analysis

Dr. Berne theorized that there are three ego states: child, parent and adult.  These are based on the belief that our life experiences impact the way we look at the world.  We learn the first two ego states from our parents and authority figures.  In fact, he believed that we literally record every event in our brains—to be relived, remembered or replayed later.  We drift in and out of ego states within seconds; however, we have a tendency to spend more time in one.

Child Ego State – When we are children, we record the internal events that are associated with external events we witness.  Basically these are the emotions or feelings that are tied to those events.  This ego state typically exhibits childlike behavior such as tantrums, selfishness, a desire for immediate gratification and raw emotions.  It is referred to as the ego state of “I Want”.  In an appropriate setting (out on the town, a party, at a football game, etc.) it is a wonderfully fun and releasing place to be.

The Parent Ego State – Also learned in childhood, we modeled this ego state on our parents’ (or others in a parent-like role) values and prejudices.  It is thought that there is a massive collection of external events that were perceived during the first five years of life.  These might include: “never take candy from a stranger”, “look both ways before you cross the street” or “always chew with your mouth closed”.  During the first five years of life, the child receiving these messages and events has no way of filtering the information.  Have you ever watched children play and heard your words (and tone) come out of their mouths?  I will never forget my shock the first time I opened my mouth to reprimand my son and my father’s words came flooding out.  I had sworn I would never say that—and yet I spoke it as if on ‘auto pilot’! This is the ego state of “I Should”.   

The Adult Ego State – the final state, this is what we perceived to be different from felt (Child) or observed (Parent).  At around one year of age, we are able to exhibit gross motor activity:  grabbing a toy, playing peek-a-boo, etc. We converted the information gathered from these situations into information. According to Berne, the Adult ego state is “principally concerned with transforming stimuli into pieces of information, and processing and filing that information on the basis of previous experience.”  It acts as a referee between the emotional pinings of the ‘Child’ and the biased ‘Parent’ to sift out the facts and draw a satisfactory conclusion or compromise.  It is the ego state of “I Will”.

(While Berne was influenced by Freud, do not confuse his three ego states with Freud’s Id, Ego and Superego.  It was Berne’s belief that instead of finding ourselves in a stage, human personality is multi-faceted.  Each of us contains personality factions that collide with each other.  These interactions and collisions between our factions result in our thoughts, feelings and behaviors.)

 A researcher who greatly influenced Berne’s study of Transactional Analysis was Dr. Wilder Penfield. Using electric currents Penfield discovered some amazing things about our brains.  Some of Penfield’s findings that most influenced Berne were:

  • Our brains record events like a camcorder.  You may not be able to access the information at a conscious level; however, it is always in your brain.
  • The event, as well as the feelings that were experienced during the event, is stored in your brain.  As such, they are entwined and neither can be recalled without the other.
  • When recalling a past event, they will be so vivid that the same emotions will be felt.

Is it any wonder that we have ‘hot buttons’ that cause us to feel extreme emotions? 

The goal of understanding that we all wander in and out of one of three ego states is to enable us to better gauge our customer’s point of reference.  If your customer is yelling at you for towing their car for snow removal (Child ego state) you probably will not have great success if you respond by saying, “Well, you know you shouldn’t have parked it there!” (Parent ego state.)  This transaction is known as a crossed ego state.  Your goal is to get them into a complementary or parallel ego state so a constructive discussion (transaction) can take place.

Fast-forward to Dr. Thomas Harris.  A student of Berne’s, he took the study of Transactional Analysis to a new level.  In his book I’m Okay – You’re Okay he relays that as babies, we learned that we are completely dependent upon ‘big people’ and therefore not okay.   As we grow, we can become more accepting (and therefore move towards a sense of okayness) as a result of positive input and reactions from others or we get stuck in a very negative self-concept.  (Negative inputs would include comments like: ‘why can’t you be more like your father?’, ‘don’t be such a baby’ or ‘you’ll never amount to anything’.) Therefore, we start out ‘bad’ and need to be talked out of it.

There are four positions or attitudes of Okayness:

  1. I’m Okay – You’re Okay:  This is expressed by self-confidence, relates well, accepts people at face value and respects opinions.
  2. I’m Okay – You’re NOT Okay:  People holding this perspective are self-righteous and domineering.
  3. I’m NOT Okay – You’re Okay:  These people see the world from their insufficiency and insecurity.
  4. I’m NOT Okay – You’re NOT Okay:  These people exhibit depression and despondence; nothing in life is good.

Jared Loughner, the shooter last weekend, is probably operating out of a position of “I’m NOT Okay – You’re NOT Okay”.  While it is unlikely that we have people waiting to shoot us with real bullets, there are a lot of folks out there with emotional bullets aimed at us.  It is helpful to understand that this condition exists and is not personal.  There are a few steps we can take to counter it:

  1. Take the time to listen; don’t try to shove negative behavior or comments under the carpet.
  2. Make eye contact and smile.  Establish a positive and personal connection.
  3. Understand that you are powerless to bring this person to a place of Okayness.  (Don’t try to rescue.)
  4. Ask about her/his feelings.
  5. Don’t make excuses for behavior lapses—hold her/him responsible.
  6. Be honest about what you need from her/him.
  7. Be empathetic.

We spend the majority of our time communicating and interacting with others; you have the power to make it positive!  Understanding how others can push your ‘buttons’, how you can slide into a less-than-healthy-ego state for the situation or how your sense of self impacts communication will make you a better leader, a better salesperson, a better employee and a better friend.  And that’s the heart of the deal!

Cheers!  Jim Baumgartner | Rent Soda

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Successful Rent Collection Timeline: Show Me the Money!

Nov 24th, 2010
by jameswb.
1 comment

It’s the holidays!  Peace on earth; good will towards…delinquents?! 

During the holiday season rent collections can be particularly difficult—especially considering our economic climate.  But in order to ensure effect collections over the holidays, the time to start is now.

Today:  Do you have chronically late people?  Take a moment to sit down and make a list of every resident who is typically late.  If you have been at your property for a while, this list will come very easily.  If you are new you will need to take a look at your receivables from prior months. 

Start the Process Early:  Take some time the week (before the first) to make positive personal contacts with everyone on your chronically late list.  It is a good idea to set up clear expectations right from the start (e.g. When will you be paying?  How many times will I have to hound you?  How much of my mental energy are you going to take?!)  Call and say, “Hey, I just wanted to call and thank you for paying your rent.  Next month’s rent is coming up—are we going to be okay?” Take time to briefly listen to the ‘story’.  Some may have fallen on hard times.  For cases like this, it is an excellent tool to assemble a list of local charities and houses of worship that provide emergency assistance.  Pass this list on.  Be compassionate and respectful but firm.  Remind your customer that rent is due on the first and that you will be looking for it at that time.

After 5 p.m. on the First:  Take a look at who has not yet paid.  Tackle the members of your chronically late list first.  You have already had a phone conversation with them so at this point, a quick e-mail or note under the door with a gentle reminder is good. 

“End-of-grace-period Eve”:  Twas the night before the late fees kick in—it’s time for another courtesy call.  At this point, call everyone on your delinquency list to let them know that any rent received after 5 p.m. on the next day (consult your site’s procedure to verify when this kicks in) will need to include your late fee.  Let each resident know what the total amount due will be if they are late.  At this point you will discover that some of your residents have just plain forgotten in the hustle and bustle of the season. They may be embarrassed so treat them kindly (as you do with all of your residents!)

The Morning After:  The day after your grace period ends, send your late letters out. At this point, you have given a gentle reminder to everyone on your list (personal calls and e-mails) so it is appropriate to write a professionally polite letter that includes the amount owed as well as consequences of continued non-payment.

48 Hours:  Within two days, send another, sterner letter out to anyone who still has not paid.

24 Hours Prior to Starting Legal Action:  Send a final letter out to anyone who has not paid rent.  Let them know that this is last call. Often the threat of legal action is enough to get someone to finally fork it over.  If there is anyone you have not been able to speak to personally, try again to have a conversation with them to determine what the situation is.

Start the Legal Process:  Be consistent.  Do what you said you would do.  At this point, if you bail on your policy and procedures you have violated Fair Housing and you have sent a message to the residents involved—as well as any other residents in their circle of influence that late rent is okay.

Starting over (or on a new property)

Perhaps you have taken over a property where rent collections have gotten sloppy or perhaps you have enabled residents to start slipping outside the bounds of your company collections policy.  Some tips:

  1. Send a memo out to every resident letting them know that rent collection has gotten a little lax and reminding them of your policy.  Specify that you will be returning to your standard procedures in thirty days.  Place a copy in each resident file.  In many jurisdictions, if a resident can prove that rent has not really been due on the first a judge will often side with them.  In effect, you have rewritten your Lease based on your actions.  You need to draw the line in the sand again. 
  2. Let new residents know your rent collection expectations (policy) from the very beginning.  This is an excellent item to underline and have them initial on the Lease during your Lease-signing meeting. 
  3. When a resident is late, have a standard recap of your rent collections policy including time-line and give it to them. 
  4. Still having problems?  Early in my career a resident told me that I was his last priority because our site’s late fee was lower than his truck late fee.  (It’s always good to know where you stand!)  After researching what others were charging in the market and what state law allowed, we increased late fees.  Make sure the penalty is fair but big enough to be felt.
  5. Start weeding out chronic late-payers at renewal time.  There comes a time when you have to decide whether or not you want to keep a customer.  Sometimes it is okay to just say goodbye.

We would all like to be able to say, “Hey!  No pay no stay!”  But we are in a customer-service business. Rent collection is often one of our least favorite tasks because we feel like we are always chasing the painful few.  I hope you take some time to use these tips to create a proactive plan to motivate your customers to pay you on time.  And then, enjoy the holidays!

Cheers!  Jim Baumgartner | Rent Soda

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TOP 3 Qualities of Successful Multi-Family Apartment Careers

Nov 23rd, 2010
by daisynguyen.
2 comments

Here at RENT SODA, we’ve been talking about success A LOT. From our recent article (Build on Your Strengths: Build Success by Jim Baumgartner) to our Profiling Your Way to MORE Success sales classes, to every day conversations with our clients (“We want our manager to be more successful,”), it seems everyone is talking about “SUCCESS.”

It begs the question:

Do You Have What it Takes To Be Successful in the Multi-family (Apartment) Industry?

or better yet:

How About – What DOES it Take To Be Successful in the Multi-Family (Apartment) Industry?

We have been pondering this over the last few weeks. We’ve decided to do a series of articles on individual SUCCESS in the Multi-Family Apartment Industry. We’ve started researching and interviewing successful people – you’ll want to read what they have to say – so check back weekly as we post those articles!

First, we looked for individuals who were successful in the following categories:

  1. Someone who has had multiple career advancements and now holds one of the top positions in their company. (i.e. someone who started at the bottom and worked their way up to VP, CEO/COO/CFO or founder of a company in the Multi-family industry.)
  2. Someone who started in property management and has made a successful transition into a vendor role.
  3. Someone who started in a vendor role and has made a successful transition into a property management/development company.
  4. Someone who started at the corporate-side of the multi-family apartment business and has successfully transition into an on-site (at the apartment community) position.
  5. Someone who started on-site (at the apartment community) and has successfully transitioned into a corporate position at their management company.

We asked our network for recommendations on those people that they feel were successful in the categories defined above, interviewed them and asked them how they became successful. We heard lots of GREAT stories, uncovered GREAT tips, and gained WONDERFUL insights into these successes – and we’ll share these stories with you over the next few weeks.

We found some commonalities in our first round of interviews – we’re going to share those with you to wet your appetite for success. We’re still in the process of finishing up our interviews, but believe these 3 qualities aren’t going to change:

TOP 3 Qualities of Successful Multi-Family Apartment Careers

  1. Successful individuals in ALL categories EMBRACED change. Sometimes they were thrust into the changes, sometimes they instigated the changes, sometimes they recommended the changes, and even at times, they were initially against the changes, but whatever the reason for the change, they EMBRACED it. ALL of our interviewees talked about change as the ONLY constant in their careers > and embracing changes was one of the keys to their success. NONE of our interviewees said, “I just wanted to go to work and do my job.”

    2. In fact a couple of them mentioned that complacency within any position is a red flag that you’re not doing the best job you could be doing > which could eventually lead to failure.

    Change can mean anything – change in market/economy, change in responsibilities, change in supervisor, change in ownership, change in technology, change in location, change in portfolio, change in team members. - you have to always be pushing that envelope, embracing change, and figuring out how it can benefit you, your property, your goals, and your apartment owners.

  2. Successful individuals in ALL categories said YES. They were problem solvers for their supervisors/companies/sites/etc – they said YES to challenges, they said YES to change, they said YES to responsibility, and ultimately, YES to success.

    3. We’re not talking about being a YES man/woman. We’re talking about a positive attitude of “Yes I can – I’ll find a way” rather than a negative attitude of “No, I can’t, NO that can’t be done.”

    Who would you rather work for? Who would you rather work with? A “YES I CAN” person or a “NO I CAN’T” person? People who are promoted aren’t known for saying, “NO, what you’re asking us to do can’t be done,” they are known for taking a seemingly impossible situation/challenge and saying “Yes, there’s got to be a way – it’ll be tough, but I’m sure I can figure it out.” If you can solve a seemingly unsolvable problem for your supervisor/your company/your industry – you will be noticed.

  3. Successful individuals in ALL categories were active communicators. All of our interviewees were articulate, well-spoken, individuals with an ability to clearly communicate their thought process. We noticed this in our interviews – it was easy to follow their stories, understand their frame of mind, and see the natural progression of their career successes. Have you ever talked to someone who is hard to understand? Jumps from topic to topic? Someone who doesn’t tie in all their points – perhaps their communications have no point? Perhaps they are long-winded? Our interviews could have been explaining the complexities of rocket fuel – but they would have found a way to make it easy to understand and pertinent to what we were talking about. HOWEVER, this is not the case with all individuals in life.

    4. Let’s not forget the word ACTIVE.

    We noticed that all our interviewees were active in communicating their goals to their teams, active in communicating their processes to their supervisors, active in communicating their needs on a project, active in communicating their career desires. The key word is ACTIVE. None of our interviewees were passive-aggressive and hoped they would be noticed for promotion. None of our interviewees hoped clients would pick up the phone and call them to buy a product. None of our success interviewees hoped a job would land in their lap. No one we spoke to was hoping someone else would tell them what to do/how to do it. Not a single one of our interviewees hoped to get the budget they needed in order to complete a goal/challenge that they had been given. They were all active at communicating their wants/needs/processes/responsibilities/etc – so that everyone knew where they stood, and how to help them get to their goals. This seems like common sense, but how many of us know someone who works hard and hopes that someone notices and gives them a raise/promotion/award? Do you know someone who doesn’t ask about the expectations of a job? How about a boss who expects that everyone can read their mind? How about someone who is given a challenge but doesn’t ask for the parameters of the challenge? We have all been that person, or know that passive person. Don’t be a passive communicator and hope your actions talk louder than words. Be an ACTIVE one! COMMUNICATE!

These are just the tip of the success iceberg.

Join us after Thanksgiving and read about the STORIES, heartaches, struggles, tips that these successful individuals have to share with RENT SODA.

Be ready to be moved to greater success.

If you know someone who you feel has been successful in our defined categories above, please send us an email and recommend them for an interview!

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

Nov 9th, 2010
by jameswb.
2 comments

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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Top Ten Tips for Leasing to Seniors

Oct 12th, 2010
by jameswb.
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According to the U. S. Census, there are 35 million seniors in the U. S. today—12.4% of the population.  Over the next decade that percentage is projected to grow to 16.5% (53.7 million people).  How do we attract this population to our community?

  1. Attitude is key.  Remember who you are marketing to—not just your senior prospect but also their kids and influencers.  Don’t approach your customer as ‘old’.  Studies show that we routinely think ‘old’ means ten years older than we currently are!  Talking down to your senior prospects will kill your sales.  Try to avoid words like senior, old or elderly.  Today’s seniors do not see age as something that is determined by the number of candles on a cake. 
  2. Seniors do use the internet (in fact senior use is growing by leaps and bounds); however, they still heavily utilize print.
  3. Depending on your budget you will likely have multiple marketing campaigns (a primary one for your senior customers and ancillary campaigns for influencers).  Design your senior-focused print advertising to be easily read and understood.  As we age the way we perceive color changes and larger print is appreciated (no smaller than 11-point).  Avoid serifs, italics and fancy fonts.  Color ads draw attention (to the exclusion of black–and-white). Avoid reverse copy and maintain good white space.  Keep your message on-point and clearly highlight the benefits.
  4. It’s all about relationship – take the time your demographic needs (and they will need a lot of it). Seniors appreciate the personal touch.  Relax your pace to match your prospect.  As we age relationship becomes more and more important.  Who you are is as important to them as what you are saying. 
  5. Your senior prospects have seen and done a lot in their lifetimes.  They are skeptical (life can do that to you!)  Have testimonials that you can share.  Better yet, have resident hosts at social events, use a resident’s apartment as a model or stop and chat with residents along your tour route.  Create opportunities for your prospects to socialize with your current customers.  Credible testimonials work. 
  6. Be real.  Be direct. Your customer has a lot of experience; they will be able to see through flash.
  7. Always ask for the sale; however, do not use a hard close or scare tactics.  Remember, this is a major move for them.  In some cases they have 30 or 40 years worth of possessions to sort through and dispose of before they can even make the move.  The name of the game is to not ADD to the fear but enforce the newfound independence they will have moving in to your community.  Your job is to solve their problem and present your offer.
  8. Highlight why the move to your community will help them remain active and independent.  A great fear is having to rely on others for basic everyday life functions.  What do you offer that will enhance their lives?  Define what your customers need; do you have it?  The senior housing market is changing quickly.  Baby Boomers are demanding a level of quality and service that far exceeds their predecessors.  In the past, buildings became ‘senior’ buildings because the population aged in place and never left.  Today, your customers are expecting much more.  (Expectations might include van service to doctors, shopping centers and events; library/business centers; hot meals; fitness centers; hair salons and even happy hours!)
  9. Senior prospects fear being taken advantage of.  The use of guarantees can be very helpful in imparting confidence.  This might be the time to employ fully refundable holds.  Don’t cop an attitude if your customer takes advantage of it, they may be testing you.  If you handle the situation with grace, your likelihood of eventually closing the sale is very strong. 
  10. Don’t forget the old-fashioned hand-written thank you note.  The time and effort it takes to send a personalized note will be valued and appreciated.

Why work so hard to attract this demographic?  Your senior customers will be amongst your most loyal residents and will remain as long as their health permits.  In addition, you will find that they do much to enhance their new community.  The investment in time it takes to build these relationships will continue to build dividends.

Cheers!  Jim Baumgartner | Rent Soda

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Eight Tips on Renting an Older Property

Oct 6th, 2010
by jameswb.
4 comments

Prime 70's Mansard

A client recently asked, “Do you know of any information on how to rent older properties?”  Her property was built slightly before most of us were born. 

Early in my career I was spoiled rotten.  I did lease-ups of new construction luxury sites.  When I had to do an analysis on an aging Class C property I turned my nose up and sniffed, “They should just invest in a flame-thrower.”  My cronies and I were amused; however, several years later I had several of these little flame-thrower targets in my portfolio.  Imagine my shock (and embarrassment) when I realized that these were the assets that threw off the majority of cash in our organization.

So what do you do when you find yourself adrift on an aging property (not old enough to be charming or cool but too old to be hot and trendy)?  Do you wallow in self-pity and stare in envy at your new, amenity-rich neighbors?  No way!  Beat up the new kids on the block with a stripped down, value approach!

  1. Rent the basics—not the bells and whistles.  Why pay for what you don’t need?  Remind your customer that they are not paying for amenities that they will never use.  (How many people actually use the pool or cardio room?  They may say they will but end up not having the time.)  Remind them that “The money you save on rent can be applied to the things you really want!”
  2. Buy the upgrades you will actually use:  Want a kick-butt health club with spin and Pilates classes and machines that actually work?  The health club industry is suffering just like the rest of us and they are offering deals!  You can get a membership very inexpensively.  Better yet, negotiate a property or portfolio discount and create resident clubs (boot camp, spin, Pilates group, yoga group) to go to the health club together.
  3. Mature landscaping is GREEN!  Highlight the fact that you have mature landscaping that adds beauty to your residents’ world.  Older properties often have extensive grounds; do you have an area that could be dedicated to a community garden?  Garden plots and compost piles are easy and inexpensive to create.
  4. Focus on design plusses: 
    1. In the Pre-ADA years room sizes tended to be larger.  While unit square footages may have stayed pretty consistent, where space is allocated has not.  New construction design mandates larger bathrooms and kitchens to allow for wheelchair access.  This has resulted in smaller bedrooms.  Families and roommates will appreciate more space in these rooms.
    2. Older properties tend to have larger balconies.  In some communities this is not an issue but many people enjoy the opportunity to step outside—whether for a cigarette or fresh air break.  Due to the costs of balconies, often these are value-engineered out or downsized today.
    3. Galley kitchen?  We have heard a lot lately about ‘foodies’; however, consider your demographic:  do they eat in or out?  Many of our residents never use anything but the refrigerator and microwave.  So if they comment on the small size of the kitchen, determine if they are asking out of habit or if they do like to cook.  If they are foodies, all is not yet lost—advise them on how they can extend their kitchen into an adjacent dining area through the use of butcher blocks, microwave carts, IKEA islands, etc.
    4. Focus on what you can do to be better than your competitors:
      1. Focus on EXCELLENT customer service.  Can you get your work requests done faster?  Can you offer custom painting at renewal time?
      2. Add conveniences for your customers:  free use of the fax machine, selling stamps, free movie rentals or free photocopies.
      3. Create regular resident events like book clubs, biking, a sand volley ball team, etc. to encourage community.
      4. Solid construction is an older feature you should brag about!  It is unlikely that any of your parts were pre-fabricated off-site.  Everything was carefully handcrafted with pride right there!  This means that your building is probably solid and relatively quiet.
      5. Older properties tend to be in great locations closer to business and entertainment centers.  Promote neighborhood ‘walk-ability’, convenience to business centers, nearby green spaces, entertainment venues, transportation and key arteries.
      6. Got charm?  Sell it! Anything that is different sets you apart from your competitors.  Your job is to draw attention to it and tell your customer why it matters to them.

Maximize what you have!  Be proud of the value you represent!  And don’t forget to ask for the sale!

Cheers!  Jim Baumgartner | RentSoda

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RENT SODA presents WATER COOLER DAY for those that WAH! (Work At Home!)

Sep 27th, 2010
by daisynguyen.
1 comment

Do you WAH*!?

*Work At Home

For those of us who work from home, life can be kind of lonely…

That is why we have created…

RENT SODA WATER COOLER DAY!

Please join us for our first RENT SODA Water Cooler Day on Friday, October 15th starting at 12:00 NOON.  We’ll be hosting a potluck from noon to 1:30PM.  (We’ll have chili, coffee, tea and water.)

Miss the hustle and bustle of co-workers?  Want an office environment without the “office politics?” Stick around for ‘Semi-quiet work time’ from 1:30PM until 5:00PM. RENT SODA offices HQ has wireless internet, plenty of table space, coffee/water and a comfortable “lounging” area. Feel free to work, socialize, collaborate, and share ideas with other WAH co-workers!

RENT SODA HQ is located at:

711 Hennepin Ave S, Ste#508

Minneapolis, MN 55403

To RSVP, please email Daisy {at} RentSoda(.)com OR call Jim at 612-710-0546.

We hope you join us!

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RENT SODA Open House THURSDAY October 7th, 2010

Sep 20th, 2010
by daisynguyen.
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Who: You, our Friends and Clients of RentSoda, are invited!

What: An opportunity to get together and see RentSoda’s new office space!

Where: 711 Hennepin Avenue South, Suite 508, Minneapolis

When: Thursday, October 7 from 2 – 5 p.m. Yummy refreshments & wine will be served.

Why: Please join us in celebrating our new office space and the addition of Jim Baumgartner to team RENT SODA! Enjoy light refreshments and wine! Check out our new RENT SODA Training THINK TANK – where ideas will POP! And get to know us while mingling with the industry friends.

Please RSVP by sending an email to daisy {at} rentsoda(.)com OR call Jim at 612.710.0546. We hope you will join us!

-Daisy Nguyen & Jim Baumgartner in Minneapolis, Minnesota MN

CEO/President & Senior Vice 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!

Follow RENTSODA on Twitter!

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Craigslist-phobia: Don’t lose FREE Apartment Rentals!

Aug 8th, 2010
by jameswb.
5 comments

During my training classes I always encourage leasing professionals to use Craigslist postings. Where else can you get your message in front of hundreds of people looking to rent YOUR apartment, schedule your message to run when you want it to (and when you are available to promptly respond to inquiries) and best yet–it is FREE!

Invariably I get negative comments: “Isn’t that where the ‘Craigslist Killer’ found his victims?”

“Craigslist is just a hook-up site.”

“We tried it; all we got was spam and scams!”

Meanwhile, those who are making a different kind of killing on Craigslist cross their arms, lean back and smile smugly. They don’t want the rest of the marketplace to know the secret to their success!

Throughout history those who have quickly adapted to new technologies have survived and thrived. I’m sure there were some folks gathered around the communal campfire complaining that the wheel would never last.

Craigslist (and social marketing) is here, it’s here to stay and it is revolutionizing the way we do business. Craigslist is the new marketplace. If you want to sell your old washing machine, you list on Craigslist. If you want to share and discuss your latest haiku, you do it on Craigslist. If you need an apartment, you look for it on Craigslist.

If Craigslist isn’t one of your top three sources of traffic, you are doing something wrong. (Oh, and did I mention that it is FREE?!)

I worked with a site manager of a Class C property on the edge of a downtown area. She had several vacancies, her prices were considerably higher than her comparables (the property has off-street parking and an outdoor pool) and she could not generate traffic. We discussed her bias against Craigslist (I should add that she is an early baby boomer) and debated her fears. We asked her to just give it a try. Within one week she was a convert! All of her availabilities were full within two weeks and now Craigslist is her main source of traffic. (Did I mention her total cost of marketing on Craigslist? FREE.)

What do you have to lose…except for some vacancies?

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