Industry leaders from Grubb Properties and MG Properties Group recently shared insights on big data, benchmarking and forecasting with Yardi’s Paul Yount. “You won’t be successful in any market if you don’t have the right tools. You need the data. You have to be ready and prepared,” said Joe Anfuso, chief financial officer at MG Properties Group. Nothing could have been truer for real estate companies in 2020. With unanticipated challenges brought by the COVID-19 pandemic, real estate operators had to act fast to protect their bottom lines and keep staff and residents safe. For most companies, that meant adopting technology to transform their businesses. Read on to learn how Grubb Properties and MG Properties Group have been using Asset IQ, Yardi’s multifamily asset management software part of the Yardi Elevate suite of multifamily solutions, to guide decisions and improve performance with better data. Pivoting to online services With the growing demand for contactless leasing and transactions, many operators have made the pivot to doing business online. And it’s likely that contactless leasing — including self-guided tours — will be around long after the pandemic. Additionally, asset intelligence driven by big data has been guiding real estate operators through challenging times and will continue to lead the way. “2020 budget numbers were very different from what we projected in 2019. We didn’t see the normal seasonal changes, and budgets were pretty much out the window which has made competitor and peer data very important to accurately measure performance. We need to know how we’re measuring up to our competitors, what concessions and lease terms we’re offering and if we’re keeping the back door closed to avoid being in a vulnerable position,” said Shawn Cardner, executive vice president of Grubb Properties. According to Joe Anfuso,...
Pivotal Shifts
Emerging Multifamily Trends
There’s no way to introduce an article about the changes wrought by 2020 that doesn’t underplay the significance of the COVID-19 pandemic. It’s affected the way we do everything — limiting travel, increasing screen time and turning even the most basic activity into an exercise in risk management. For people in the multifamily industry, apartment rentals went from a typically high-touch experience to virtually contactless, seemingly overnight. And while some of the changes are only temporary, others are likely to last long after the virus abates. “This year is a pivotal moment that will reshape how we do business,” asserts Esther Bonardi, vice president of marketing here at Yardi. “The pandemic is changing our future. How can we use this for good?” Bonardi recently had the chance to talk with three multifamily leaders about their experiences marketing and leasing apartments during the pandemic. Hear from Garin Hamburger, senior director of national marketing at Pinnacle; Ian Mattingly, president of LumaCorp Inc.; and Pei Pei Mirabella, senior vice president of operations at Bozzuto on the emerging trends that will have the biggest impact on multifamily rentals going forward. Bonardi: What do you think was the biggest change in 2020 that has the most potential to become a permanent shift in the way we do business? Hamburger: The biggest change that will last through the pandemic and continue to evolve after it are the creation of alternative tour types, specifically virtual and self-guided tours. I really believe we’re coming into an age where technology will dramatically shift the customer journey and the leasing agent experience. Mirabella: The companies faring better during abrupt shutdowns have the tools and technology in place to pivot operations and enhance productivity while working remotely. In addition to using live and pre-recorded virtual...
What Renters Want
Self-Guided Tour Success Tips
Do you know what your prospects want in an apartment tour? Esther Bonardi, vice president of marketing at Yardi, hosted “OPTECH Express: The New Apartment Tour — Insights for Today’s Customer Preferences” as part of NMHC OPTECH 2020. The mini session gave insights into the latest renter preferences. Bonardi also offered actionable tasks to carry property managers into the future of touring. RentCafe.com surveys reveal what renters want To better understand renter preferences, Yardi issued two surveys. The May survey published by RentCafe.com revealed that 83% of renters would take a self-guided tour if it was offered to them. When asked why they would take a self-guided tour, the results were surprising. “About 63% of respondents said they wanted to tour at their own time and their own pace. That had nothing to do with social distancing,” observes Bonardi. “So we might say from that, it’s likely that people want this for other reasons, and it will continue to be important long beyond the pandemic.” Yardi focused on Gen Z and Millennial renters during the fall survey. Results reveal that 52% of respondents preferred a non-agent-led tour, included self-guided and virtual. Nearly 43% said they would still love to work with an agent. “These are important numbers to keep in mind,” says Bonardi. “Those numbers tell us that we have to offer options. One tour type is no longer enough to meet the changing demands of our customers. We need to let them decide what options they want to tour the apartment home.” Tips for offering new tour types “Don’t offer a new tour type just to check a box,” advises Bonardi. “Gather with your team and figure out how to make each tour feel as personal and connected as possible. After all, this...
Tips for Hosting + Staging
Virtual + Self-Guided Tours
If you thought that virtual tours and self-guided tours were flashes in the pan, think again. Renters throughout the U.S. are speaking up about their tour preferences. Non-agent-lead tours are ideal for more than 52% of renters, reports a survey by RentCafe.com. That same report reveals that more than 83% of renters would take a self-guided tour. Though social distancing is a factor for some, 63% of renters would do so because they want to tour at their own time and pace. Additionally, more than 70% of renters would rent an apartment without seeing it in person if they could explore it via virtual tour. Virtual and self-guided tours offer convenience as well as safety. Since convenience is always trending, these tour types are here to stay! Check out the pro tips below to host effective virtual and self-guided tours. Special camera considerations for virtual tours Property photographer Deanna Campana of Welcome Home encourages agents to conduct tours in landscape mode (horizonal) rather than portrait (vertical). “The latter will make all your spaces seem narrow and cramped,” she explains. Campana notes that time of day is also important. During a conventional tour, you may choose to tour midday, open all the blinds and let the natural light cascade into the room. When walking from space to space during a virtual tour, however, this will cause your camera to fade between very dim and bleached-out spaces. The results are a tour that’s challenging to see, much less enjoy. “Midday light is too harsh,” warns Campana. “Consider scheduling most video tours in the early morning or evening light. Cloudy days are ideal so you can shoot at any time.” She adds, “If you must tour midday, close the blinds. The outdoors will be overexposed, too bright for renters to see what’s out there, anyway. It’s better to focus on what’s inside.” She advises treating the view from each room as its own feature when necessary. Go outside when you can. If not, approach the window, open the blinds, and close them once done. When light distortion is unavoidable, schedule in the evenings during “golden hour” when the light is “soft, magical and with a golden glow.” “Many phones will allow you to snap pictures while recording,” says Campana. “Take pictures of things the renter likes. You can include them in your follow-up email.” Live vs. pre-recorded tours Pre-recorded tours are a great option. About 27% of renters said they would prefer to see prerecorded videos of units over live virtual tours, reports Adobo listing site. Once posted, pre-recorded unit tours are available 24/7 on your website, which saves time for staff. A videographer or component agent can pick the ideal time of day for the best lighting and noise control. Image stabilization tools create a beautiful, smooth tour and less hassle for staff. For agents taking on the challenge, Campana adds, “For pre-recorded tours, shoot the video at night using ambient light. It’s uniform, flattering and won’t cause troublesome light imbalances.” Since pre-recorded tours require editing, they may not be ideal for hot markets where units are listed and leased in a matter of hours. Other considerations for pre-recorded and live virtual tours Pace matters. Walking too quickly through a unit will cause renters to feel rushed and possibly dizzy and disoriented. “Walk slower than you think you need to, like you’re walking with a senior,” smiles Genitra Maxwell, assistant manager at Bridges of Kennesaw apartment community. “And just check in and ask if the pace is okay.” Leasing agents may be accustomed to narrating conventional tours. Too much talking may seem distracting to some. “Just ask them what they prefer,” advises Maxwell. “Some may want a narrated walkthrough and then silence during the second pass where they can ask questions.” Maxwell encourages agents to home in on details that renters won’t see a camera phone. “Any technology in the unit,...
Increase Tour ROI
6 steps from tour to lease
Sure, you’re booking more tours. But are you converting them? Here are six steps you can take every time a tour is booked that will help you get the lease. Customize your confirmation As soon as a prospective resident makes an appointment, you should send out a confirmation that includes all the necessary information (e.g. date, time, location, contact info). Ideally, your CRM system will automate that step for you, so your agents don’t have to manually respond 24/7. Each email should be customized to make the guest feel special. How do you customize an automated email? First, add their name to the email so it says something like, “Hi Jared, we’re so excited for your visit next Tuesday at 9:30 a.m.” Then, take it to the next level by asking a question. You can do something like: Upon your arrival we want to welcome you with a beverage of choice. Do you prefer x or y? We have a welcome gift for your tour. Would you prefer x or y? Both ideas work well for agent-led and self-guided tours, but even with virtual tours you can come up with creative ideas for gifts. You can easily email something like a Starbucks gift card or a coupon book for area businesses. Raise anticipation After you’ve confirmed the tour, raise anticipation to make sure your prospects don’t cancel or lease from a competitor. You can do this in several ways. One of the easiest methods is to take a quick video of yourself with your phone. In the video, you should greet them by name, show them something compelling about the unit or property and say that you can’t wait tour with them. Get other ideas that will help you raise anticipation in this episode...
Self-guided Tours
6 right now benefits
If you are on the fence about self-guided tours at your property, take heart. The benefits of self-guided showings are plenteous, and you can still provide many benefits of agent-led tours. Additionally, self-guided experiences alleviate many frustrations for leasing office staff and prospects. Read on to learn how you can benefit from making the switch. The benefits of agent-led showings Multifamily professionals often prefer guided tours for a few great reasons. Leasing agents learn more about prospects during the tour. They can then use that information to determine which unit, amenities, and community features will most appeal to the prospects. Of equal importance, leasing agents build rapport with prospects which is a vital part of the sales process. When tours are booked through the office and led by an agent, property managers may feel more at ease. They know exactly who will be on the property and when. When prospects are accompanied by an agent, the property manager knows the guests will see the best of the community and have all their questions answered. Self-guided tours can offer many of the same benefits—and more! Agents can still connect with prospects before the showing. They can use that information to highlight areas of interest for prospects. Additionally, self-led tours can be accompanied by audio or written guides, so prospects don’t miss out on the most important details of the unit, community, and neighborhood. Technology also addresses security concerns. Through the tour scheduling app, prospects receive a unique code that is only functional during their tour time. Property managers will still have a clear idea of who is touring the unit and when. There are several unique benefits to self-guided tours as well: The benefits of self-guided tours Practice social distancing without losing business. Social distancing...
5 Tech Takeaways
From NMHC OPTECH
NMHC OPTECH 2019 in Dallas was the place to be for multifamily real estate execs seeking strategies to raise their game using technology — especially looking ahead to a likely downturn. In lively peer roundtable discussions and dynamic property and revenue management workshops and sessions, industry insiders dove into the big issues facing multifamily businesses. Compelling strategies emerged for growing revenue, managing all lease types and improving the customer experience using new technology. Read on for our top five takeaways from this year’s event. Unleash data Gone are the days of making business decisions based on guesswork and backward-looking data aggregated into spreadsheets. Today, new technology automates data collection with advanced analytics to provide a complete picture of a portfolio’s opportunities and future risks. That’s big data, and it’s a big deal. At OPTECH, experts talked about the valuable business intelligence hiding in your company’s data, and how to capture it to improve all operational systems and processes from front office to back office, including revenue management and rental pricing. In the session “Apples to Apples: Getting Clean Consistent Data for Accurate BI” data experts and asset managers discussed evolving corporate best practices in performance data tracking. Starting with clean, reliable data from a single database for one source of truth is essential. Using a system that leverages that data with machine learning and artificial intelligence to deliver predictive analytics with recommended actions is keeping leading companies ahead of the curve. And don’t forget about futurecasting. You can get a clear picture of potential future income using reliable operational data. Smart forecasting tools drill down to lease level data and also factor in market conditions and industry dynamics, so you can stay agile and plan for what happens next. Protect information The...
