The Art Of Renewals

 

 

There are really only two things you need to know about renewals if you want to be successful in our business, and those are the two main reasons for people NOT renewing.

Reason #1 - Rude and Uncooperative Office Staff

Since the first day that I started training within our industry, I have taught the rule of "Jump, Shake and Percolate".  Every time a non-employee walks in the door, someone should; jump up, shake their hand and exude a perky personality.  This should happen with prospective residents, existing residents, vendors, city inspectors, postal workers, delivery people, etc.  This action sets the tone, a welcoming tone ... and creates a referral based atmosphere.  The rule can be modified to "Jump, Pick  Up and Percolate" when referring to phone calls.

So often I visit communities and observe exactly the opposite.  I hear the door open and not a single employee moves.  Finally the visitor finds their way to a manned desk, but the community employee remains seated (with their bottom growing wider in the chair) only to say, "May I help you", with the "Great Wall of Desk" coldly blocking them from delivering kind and cooperative customer service.  The opportunity to set the positive tone and impress the resident, prospect or potential referring vendor is lost.

One of the first things I was taught regarding customer service, was to remove the negatives from my vocabulary.  Do not use such words as; no, unfortunately, not, can't, etc.  For example, a resident comes in, says her dishwasher is broken and she needs the maintenance person to look at it immediately.  It would be natural to say, "I can't do that, service requests have to be completed in the order they were received unless they are a life/health/safety issue".  This response is cold, by the book, inflexible - therefore, causing you to be judged as rude and uncooperative.  A better answer would be; "I totally understand your challenge, what I can do is inform the maintenance tech of the urgency and I am sure he will make it a priority to complete your service request as soon as possible."  The beautiful trick is, prepare your team for these "In Front of Customer" radio requests, so they respond with a service minded answer.  If you are saying to yourself, my guys/gals could never do this, then you have the wrong people on your team.

As a corporate officer, I have personally handled hundreds of customer service complaint calls and I can honestly say that 90+% of them refer to a staff member as being rude, typically the Community Manager.  And, upon calling the community and speaking with the staff person or Community Manager, it becomes evident that emotion has gotten in the way and they personally dislike the resident ... their emotion just cost their community a $12,000 renewal, plus make-ready expenses.  YOU'RE FIRED!  This is business, there is no room for emotion, only black and white service - can you do it or can't you, are you wrong or aren't you, is the customer right or not?  Forget if they are yelling, calling you names, saying awful things ... they are not paid to be professional - YOU ARE!

Reason #2 - Slow or Poor Maintenance Service

One of the first things I noticed upon entering the industry regarding maintenance services, was how the community service reputation totally mirrored the professionalism, organization, work ethic and customer service focus of the Maintenance Supervisor/Service Manager. If they were well groomed - the grounds were well groomed.  If they kept the shop clean - the make readies were clean.  If they were well organized - inventory was organized.  If they were smiling and greeting - their teams were smiling and greeting.

The position of Maintenance Supervisor/Service Manager is absolutely PIVOTAL in the success of the community.  This person needs to be an active "Hands On Manager", walking the property, inspecting the completed work of their employees, calling residents who are dissatisfied with service request completions, closing out work orders to observe length of time for completion and inventory used, meeting weekly with the operations/leasing teams regarding make readies, move-outs, move-ins, etc.

More so than ever, the Maintenance Supervisor/Service Manager and his/her maintenance team members need to be hired for people skills; they need to be "People, People".  The consistent smile, the consistent wave, the consistent greeting; "How You Doing Today" is imperative for the renewal process.  The day of the "Shut Up and Let Me Do My Job" grumpy Maintenance Technician is gone, and so too should they be, if they are still a member of your staff.

Do not think, I am suggesting your maintenance team members need to be educated white collar employees, in fact, I am suggesting polar opposite ... I do not want a brain surgeon handling the Freon in my AC.  I want an experienced, blue collar dude/gal ... but one that is presentable, smiles and simply greets me with a positive attitude.

So, as a Community Manager and Maintenance Supervisor, ask yourself this question regarding each other's (not yours) employees;  "Would I want to be stuck in a car one on one for an eight hour drive with this individual?"  If the answer is "No", you now know why your residents are not renewing!

Renewals are quite simple, simply ask yourself, are you and each of your team members, "The Devil Who Wears Prada" (an emotional bitch) or "Larry the Cable Guy" (get-er-done)?

Apartment Demonstrations vs. Tours

 

 

We all love giving the apartment tour. That is where we get to see the prospective resident(s) eyes light up and they begin to imagine themselves living in the apartment home. Unfortunately, that dream moment only lasts a couple of minutes and then we need to be prepared to answer questions, handle objections and go for the close.

 

I have been in the apartment industry for over 2 decades and shopped hundreds of communities and can honestly say, I can count on one hand the number of great demonstrations I have received from Leasing Specialists. Sadly, I can also tell you, I, my family and my circle of friends do not have enough limbs, fingers and toes to count the horrifying, un-motivating, non-action inducing tours I have been subjected to over the years.

 

Demonstrating an apartment home is an art form, well thought out, practiced and consciously customized from the knowledge a Leasing Specialists extracts during a phone or initial meeting conversation. The details of the prospective resident(s) must be carefully woven into the demonstration narration, specifically highlighting benefits of features that significantly apply to them individually.

 

The bad news is, most Leasing Specialists are never trained how to effectively demonstrate an apartment. So out of ignorance, they become tour guides, merely announcing the rooms. Leasing Specialist: "This is your kitchen." Prospective Resident: "Holy crap, thanks for telling me, I would have put my bed in here next to the stove!" Leasing Specialist: "This is your bathroom." Prospective Resident: "Wow, you are great, I thought the room without the toilet and sink was the bathroom!"

 

Fess up, you know you have done this, and possibly are still doing it today.

 

We are missing our opportunity to point out benefits of features that would motivate the prospective resident(s) to apply, leave a deposit and move in. Below are some demonstration tips that are sure to increase your closing ratios.

 

Tip #1 - Use your initial phone or in person meeting to extract as much customizable information as possible. Find out names of all of the occupants, names of pets, furniture sizes and colors, interests like baking, clothing, watching televison and what's important to them like outdoor living space, quiet neighborhood, social activities, etc. Anything you can find out, will give you more to utilize when customizing the demonstration. During the demonstration, state everything as though they have already rented and it is his/hers/theirs.

 

Tip #2 - Upon arrival to the model or make ready, build the suspense, keep them outside the door by asking them a few questions. "Have you seen many apartments with ceramic floors throughout?", "Can you picture what 1400 square feet looks like?", "Can you imagine your 12th floor view of the city?" and finally "Are you ready to see your new apartment home?" Upon their positive answer of "Yes", unlock and swing open the door and say "Welcome home!"

 

Tip #3 - Don't announce the DAMN ROOMS, they know what they are. Immediately start pointing out the benefits of the features that you can customize specifically to them, based upon your phone call or meeting. "You told me you liked to entertain, so notice your entry guest closet." "On the same note, take notice of how open the layout is, you can have guests on the balcony, in the living room, in the dining room, at the bar and you will still be able to be part of the party while working in your kitchen."

 

Tip #4 - Know your floor plan facts. "I know you said you like to cook, so that typically means you have a nice collection of pots, pans and dishes. Notice, your kitchen has 18 cabinets, 4 utility drawers and 14 linear feet of countertop space." "Since you told me you work retail, I am assuming you might have a great wardrobe and collection of shoes. This specific floor plan offers at total of 1280 cubic square feet of closet space." (height, multiplied by depth, multiplied by width)

 

Tip #5 - Make them work for the reveal, don't do it for them, this gets them actively involved. "Open your glass sliding door, step onto your balcony and check out your view." "Open your refrigerator and see how many cool compartments there are for your eggs, meats, vegetables and dairy." "Step into your walk-in closet, stretch out your arms, notice you can touch the walls, this is a big closet." "Turn on your stove overhead exhaust fan, listen to how quiet it is."

 

Tip #6 - Remember, they are soon to be homeless, and you just showed them an apartment home that has been customized specifically for them. "Robert, picture your 60" TV on that wall while you watch the Super Bowl, it was built just for you." "Gretchen, picture your first cocktail party, with all of your tasty appetizers artfully displayed on the bar for all to admire." "Penny, picture all of your dollies lined up in the window sill, so they can watch the birds play in the trees while you are at school." "Jimmy, your pet lizard Fang, is going to love all of the sun that comes into your bedroom window."

 

THEY WILL RENT, ASSUME THE APPLICATION AND DEPOSIT. "Ok, let's get back to the leasing center and do the paperwork, so we can get these keys into your hands soon!"

 

Of course there are many other things involved in the dynamics of being a great Leasing Specialist, but one of your strongest tools, is your demonstration talent. Your company is potentially giving you a $12,000 tool annually (lost rent on model), use it wisely and with aggressive dedication. Likewise are the vacant units, each day is lost rent, yet if demonstrated well, the loss can be minimized.

 

So, consider yourself fired as a Tour Guide, and rehired as a "Demonstration Artist"! Let, the demonstrations begin and the commissions roll in!!!