How To Succeed In Property Management
By Mindy Williams
(From my keynote speech for the apartment association in Raleigh, NC.)
Who will succeed in our business? Well, only the good survive! (Duh!) But
what we forget is that we're only as good as our last tour, advertisement or
training session. So...
Who Will Succeed?
-People who want to learn more.
-People who are motivated to do more.
-And, people who know that for most major challenges, someone else has
already encountered them, and figured out ways to solve them. These folks
know it’s just a question of having resource materials on hand. So, the
people who will succeed are those with a personal library of resources to
help them.
Steps For Success
I read that the average teacher spends $360 of her own money on materials to
become a better teacher. What do you think the average on site manager
spends each year to help her do a better job? (The Raleigh audience guessed
ZERO! Is that what you think?) To figure it out, we polled everyone who
called Rent & Retain Magazine for one month. I also asked people in my
seminar audiences.
I'm happy to report that the answer was not ZERO, but it was substantially
less than what teachers spend. The average on site manager spends less than
$50 (of her own money) per year on materials to improve her job performance.
While $50 was not a shock, I was disappointed it was so low. The statistic
is also a bit skewed, because if they subscribe to Rent & Retain, they are
more apt to buy books and subscribe to other publications. And, since most
companies pay for the subscriptions, we were only interested in how much of
their own personal money was spent.
During our study we also found that most managers will not buy materials if
they won't be reimbursed. I am constantly saddened to hear subscribers say
their bosses won't approve their subscriptions. Or when regionals or
marketing directors call and say they can't afford to pay for subscriptions
for each site (at $39 each? With a money back guarantee? When Rent & Retain
will teach them better sales skills, help them retain residents, and motivate
the staff? You've got to be kidding.). For many management companies,
training and training tools are the first thing to go during budget cuts. In
my opinion, they've lost sight of where their money should be spent.
If nothing changes, nothing changes.
Ask any speaker, both in our industry and out, how much money they have
personally spent on books, seminars, audiotapes, etc. in the last year. I
guarantee you the answer will be in the thousands of dollars - literally!
That's the only way we stay on top of trends and new customer service and
selling techniques. If you don't do anything to change, your problems will
remain the same, and you'll face the same battles over and over. Break the
pattern and you'll solve the problems.
So, how do you discover trends?
1. Subscribe To Industry Publications
2. Know Your Customers Wants and Dislikes
3. Watch Your Competitors For New Amenities & Services
4. Read books from the New York Times and the Amazon.com Best Seller lists.
I know the first three are obvious - the answer to most of your problems lies
in industry publications (you smart Rent & Retain subscriber!), your
customers will tell you their needs, or your competitors will be facing the
same situation and quite possibly have figured out an answer. That leaves
the best-sellers lists. Instead of describing how it can help you, I'll
show you.
Here are examples of how you can read books and apply them to our
business.
- Why We Buy : The Science of Shopping, by Paco Underhill
In an effort to determine why people buy, Paco Underhill and his band of
researchers have camped out in retail stores, dedicating their lives to the
"science of shopping." Armed with an array of video equipment, store maps,
and customer-profile sheets, the researchers watched us shop for 20 years to
find patterns on what we buy and why. Here's what they learned:
In General:
-People need to be in a store for ten minutes for them to feel comfortable
enough to buy.
The same theory applies to leasing. Why do we whisk prospects on tours
and/or ask for their personal information within the first three minutes?
-There is a transition zone in the first ten feet inside a store.
Many retailers make the mistake of putting store specials or shopping baskets
right inside the door. The study showed that almost quadruple the number of
customers will pick up baskets and flyers if they are about ten feet in the
store. Our lesson: Don’t put brochures, newsletters and other sales
materials right inside the door!
-Almost every customer immediately goes to the right when entering a store.
So, make sure there is a subtle sales message or directions to the leasing
office on the right. If you are renovating or planning a new community,
consider putting your leasing office on the right as prospects’ drive in.
-Interactive stores close more sales.
Researchers discovered you are more apt to buy if you can test the product
first. Customers now practice shooting hoops in their new sneakers, ride
bikes around the store, or taste products. How can we apply that to our
business? Some communities already have with interactive leasing offices and
models — throwing darts for money off rent, sharing pool and fitness center
passes with prospects, having jukeboxes, pinball machines and toy boxes in
models. The proven theory: The longer the prospect stays with you, the more
apt they are to buy.
Sales Techniques From Retailers
-If there are shoppers waiting in line, the impression of service diminishes.
So make sure you have enough people in your office during the busiest times.
-If you use golf carts during tours, install cup holders. Hey - you just
offered them a drink - are they supposed to chug it before the tour?
-Update your model as frequently as your customers come back. Track
prospects - if they come back every two weeks, that’s how often you should
put something new or different in the model. This will keep your look fresh
and updated. The new thing can be as little as a different scent or an
accent piece.
-Here's a great way to welcome a new prospect, ask: "Are you Joe?" When the
prospect says no, you say, "Oh I'm sorry! I just spoke with a man named Joe
and he sounded super nice. You looked like you might be him!" This is a
back handed compliment and breaks the ice.
-Do SOMETHING in your model. Pop popcorn, change the TV channel, put towels
in the dryer, etc. while you are in the model. This gives prospects time
alone. The more time they have to look around, without a leasing consultant
watching their every move, the better chance you have to make the sale.
-Swap advertisements with local retailers. Hang signs in the models saying,
"It's okay to touch this new mattress from ABC Store. It's designed to be the
most comfortable mattress, especially if you have lower-back trouble." You
can do this for sofas, "surf" these TV channels, check out how fast our
Internet access is, etc. The more prospects touch, the more apt they are to
buy. Have stuff for kids to touch in the model, too.
-Give prospects a comfortable area to review your sales material. I did a
small survey one Saturday and could not believe how many prospects looked at
your brochures - in their cars! Brainstorm a way for them to stay on your
property while reviewing your materials. Once they drive away, there is a
higher chance you'll lose them. One community offers a half price lunch at
the corner restaurant to prospects. Many go for lunch, review the materials,
and come back and rent.
-McDonalds found that 75% of their customers read the menu AFTER ordering.
Their customers know what they want BEFORE getting to the store. I say our
prospects do, too. What does that mean to us? That since we tend to offer
the same things as our competitors, we need to spend the one-on-one time
developing relationships with our prospects. That's one thing your
competitor won't take the time to do.
-Since most people go to the right when entering a store, think of how your
floor plans are displayed. At many communities there are floor plan
"plaques" on walls or desks. Have too many of a certain floor plan? Move
that one to the right side of the line up.
How does your sign hang? Pretend you are a prospect, drive into the parking
lot, park your car, and approach the leasing office. Can you see the sign?
Retailers tend to hang their signs flat against stores. But in malls you
approach stores from the side. So, retailers should hang signs perpendicular
to the store. Do you need to do this?
Smells From Retail
We know smells sell. Looking for proof? Warm Welcomes (800-882-8022) can't
keep their cookie-scented air filters in stock. Some companies "brand" a
smell by using the same smell throughout the property and throughout the
portfolio. Retailers find that smells associated with the room increase
sales. For example:
-Baby powder in air ducts for kids’ rooms
-Laundry rooms that smell like Bounce
-Kitchens that smell like bread, cinnamon rolls or coffee
-Bathrooms fragrant with bath salts or bubble bath.
"Why We Buy" Was Worth The $15 To Me
...as you see from everything I learned from the book. I won't go into as
much detail with the other books, but I know you are getting my point!
- Digital Capital: Harnessing the Power of Business Webs by Don Tapscott
This book talks about customer goals and how the Internet can help them meet
those goals.
What this book taught me:.
We desperately have to make sure...
-our Web sites can be easily and quickly downloaded
-we give customers the option of a quick tour or long tour
-we give information on the phone right away
-we have different methods to deliver our message including unique
collaterals: popcorn brochures, CD Rom brochures, downloadable brochures,
Power Point brochures, Video tours, talking houses, etc.
-we have automatic email responses for Web site inquiries
-we give instant credit approval
-residents can pay rent by credit or debit card, or electronic checks
-we put SMART cards in laundry rooms.
The goal, of course, is to use technology to streamline our processes and
improve service for our prospects and residents.
- Permission Marketing: Turning Strangers Into Friends, and Friends into
Customers by Seth Godin
I've spoken about permission marketing in several issues now. The main
theory: If customers give you permission to proceed to the next "buying"
step, they will listen to your sales presentation longer, and, therefore,
will be more apt to buy your product.
My experience: When potential subscribers call our office for more
information, we give them the choice between a two-page fax or an eight-page
fax. Almost everyone chooses the eight-page fax. But, if we just fax the
eight-pager, we would probably anger our prospects.
- EVEolution by Faith Popcorn
From the author of "The Popcorn Report and Clicking", Faith Popcorn says in
"EVEolution" that women drive trends in our society. For example, consider the
number of ready-to-eat meals in stores, the increase in healthy meals offered
in fast food restaurants, the explosion of Aromatherapy, and the huge number
of Women-Only television shows, cable channels and Web sites.
The author maintains that women are the dominant economic force in the
country. Other lessons Include:
1. Women Don't Buy Brands; They Join Them
2. If You're Marketing to One of Her Lives, You're Missing All the Others.
3. If She Has to Ask, It's Too Late.
4. Market to Her Peripheral Vision and She Will See You in a Whole New Light.
5. Walk, Run, Go to Her, Secure Her Loyalty Forever.
- First, Break All the Rules: What the World's Greatest Managers Do Differently
by Marcus Buckingham
This author maintains the old adages, "Treat people as you like to be
treated;" "People are capable of almost anything;" and "A manager's role is
diminishing in today's economy" are outdated.
He suggests there are "four keys" to becoming an excellent manager:
1. Finding the right fit for employees.
2. Focusing on strengths of employees.
3. Defining the right results.
4. Selecting staff for talent - not just knowledge and skills.
First, "Break All the Rules" offers specific techniques for helping people
perform better on the job. For instance, the author shows ways to structure a
trial period for a new worker and how to create a pay plan that rewards
people for their expertise instead of how fast they climb the company ladder.
"The point is to focus people toward performance."
To apply the principles in this book to property management, we need to:
-Provide better skill paths.
-Increase team loyalty.
-Make our sales contests more fun (One company gave away a trip to Paris!).
-Improve our Distance Learning capabilities.
-Provide more and better training.
- Discovering the Soul of Service: The Nine Drivers of Sustainable Business
Success by Leonard Berry
This book is excellent!! At least... that's what I have heard.
I own it but have not read it - why? My friend Lynne is an engineer with her
own consulting business. Her biggest client is Ford Motor Company, her
smallest client is Mattel Toys. Lynne got to page 33 of this book, then
quit. She wrote letters to her clients saying she just didn't have it in her
anymore and would rather stay home with her two kids. Wow! Powerful stuff.
Needless to say, I'm scared to read this!
- Who Moved My Cheese?: An Amazing Way to Deal With Change in Your Work and in
Your Life by Spencer Johnson
This book definitely wins the award for weirdest title. Here's the premise:
The "cheese" represents your ultimate goals - accomplishments at work, a
happy family, losing weight, etc. But, we all have different roadblocks that
hinder us from getting to the "cheese." The key, the book tells us, is to
make sure you know what you really want and to be ready for your cheese
(goals) to change.
Some lessons:
-Change Happens: They keep moving the cheese
-Anticipate Change: Get ready for the cheese to move
-Monitor Change: Smell the cheese often so you know when it's getting old
-Adapt To Change Quickly: The faster you get rid of the old cheese, the
sooner you can enjoy the new cheese (goals)
-Enjoy Change: Savor the adventure and enjoy the taste of new cheese
-Be Ready To Change Quickly: They keep moving the cheese.
This is a quick read and worth it.
- It's Not About the Bike: My Journey Back to Life by Lance Armstrong
I LOVED this book for several different reasons. The obvious one: Our worst
day will (hopefully!) not come close to Lance Armstrong's and, for that, I
can always put things in perspective. In a nutshell, Lance Armstrong is a
professional cyclist - he has won the Tour de France, the 2,290-mile road
race that's considered the single most grueling sporting event on the face of
the earth - two years in a row. He won after battling a cancer that doctors
said he had less than a 3% chance of surviving.
"It's Not About the Bike" is the perfect title for this book about life, death,
illness, family, setbacks, and triumphs. This also is a fast read -
especially as he describes the different "stages" it took him to win the Tour
de France the first time after chemo. You wouldn't believe what studs these
cyclists are!
- The Millionaire Next Door: The Surprising Secrets of America's Wealthy by
Thomas J. Stanley, William D. Danko
This book has been on the best seller list for a few years now - for a
reason! "The Millionaire Next Door" describes how most Americans made their
millions - and you'll be surprised to know that most millionaires are your
unassuming next-door neighbors.
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