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Brent @ AptConnect

Brent Williams


Last Updated: 4/13/2009

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Gender: Male
Status: In a Relationship
Age: 32
Sign: Pisces

City: HOUSTON
State: TEXAS
Country: US
Signup Date: 3/4/2005
Thursday, August 14, 2008 
I'm a big believer that one of the main reasons we struggle with turnover so much in our industry is the process of renting itself.  We tend to not act like we are renting a home, but just a temporary one-year hiatus until they find their next temporary one-year hiatus.  And this mentality is built into the lease itself.  Right from the start, there is an expiration date on their lease, that puts the requirement on the resident to actively think of whether they want to stay or find something else by that particular date.  The problem is, we don't want our residents to actively think!    When that process starts, it puts them into a "buying mode", which is where advertising works most effectively. 

Take cell phones, for example.  Do I have a clue as to what cell phone plans are out there?  Not at all!  I am satisfied with my phone and my service and, most importantly, my plan auto-renews at the same price.  So I'm never put into a buying mode unless my phone breaks or a really incredible competing product comes along.  So there is never a pre-defined date that I'm supposed to make a decision as to whether I should stay with Sprint or find something else.  And yet this is exactly what we are doing with our leases!

Once a person goes into buying mode, they transition from being completely oblivious about competing products to actively looking and considering every one of your competitors.  So what to do?  My first thought is to make leases auto-renew, and you could even probably get away with an inflation adjustment every year without putting them into a buying mode.  However, this may or may not be legal.  So in the short term, maybe a little bit of psychology could help.  What about instead of calling it a "lease end date", call it a "renewal date" and have this concept and frame of mind instilled into the resident/prospect from day one.  I know it sounds small and insignificant, but it may be enough to slightly alter the perception of the date from a defined ending to just a day to do paperwork. 

Any thoughts?  Any other ideas that could stop a resident from going into buying mode?
8:38 PM
 
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John

 
Why have an end date at all? Why not have them sign on to live in that apartment or home with an open-ended contract where they can live there as long as they wish until they decide to move on? Interesting idea, never thought about it that way before. Two kudos for you, big guy.
 
Posted by John on Thursday, August 14, 2008 - 5:01 PM
[Reply to this] 
MultiFAMILY
Multi Family

 
Good thought... BUT!!! You have to have a lease ending date. Without that, it doesn't hold anyone accountable for any period of time. People would come & go as they please. Not good! Think about all the people who break lease terms. The management wouldn't have grounds to stand on. Not only that, but rent increases could never be incorporated. I know, I know... why do there even have to be rent increases?? (lol) The cost of living, maint, taxes and the little things you dodn't even think of like trash pick-up, pest control, salaries, etc also go up. Without rent increases, the management companies would lose money in the business.

Now- to answer your question Brent... I've always found that if you offer a resident an incentive to renew, then it helps stop the buying process. Offering carpet cleanings, touch-up paint, possibly new carpet or vinyl... sometimes a dollar figure ($50 or so) off a particular month of their renewal. But MOST certainly... break down the costs of moving! That really makes a resident second guess going someplace else. And YES!!! You're very right about the way it's presented... renewal date vs. lease ending date. :) PRESENTATION IS EVERYTHING!!!

That's just my thoughts! Anyone else?
 
Posted by MultiFAMILY on Sunday, August 17, 2008 - 3:06 AM
[Reply to this] 
John

 
Why have an end date at all? Why not have them sign on to live in that apartment or home with an open-ended contract where they can live there as long as they wish until they decide to move on? Interesting idea, never thought about it that way before. Two kudos for you, big guy.
 
Posted by John on Thursday, August 14, 2008 - 5:01 PM
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