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Thanks to a low level of apartment vacancies, rent rates are rising across the country. This is good for landlords and challenging for apartment marketers.
Selling higher rents, and increasing ancillary revenue, requires strategic and innovative thinking. So we asked our chat participants how they position rates, what selling techniques they use, and whether they offer products and services to boost ancillary income.
Here are the highlights from this week’s chat. (Hit the links to jump straight to a specific question.)
- Q1: As rents increase across the country, what are the main factors that go into your rent rates? How are you positioning rates?
- Q2: What are some good techniques to help you sell your price, especially if you use rev mgmt or know rates are going up soon?
- Q3: What are some good ways to apply psychology to leasing (creating urgency, FOMO, etc.)? Any you’ve found work really well?
- Q4: Do you offer other “products” or services to help increase ancillary revenue? What are your favorite ancillary income ideas?
As rents increase across the country, what are the main factors that go into your rent rates? How are you positioning rates?
Big proponent of amenity based pricing, especially in lease-ups. Place premiums on top floor, best view, convenient location, etc. #AptChat
— Nicole P. Hartenbach (@nhartenbach) October 13, 2015
@nicolempetroff How do you show the diff in amenities between units? We find we don’t always get what we need from the feed. #AptChat — Mike at 30 Lines (@30lines) October 13, 2015
@30lines What do you mean by feed? We walk each unit to identify the premiums we should add. Easier to do in new developments. #AptChat
— Nicole P. Hartenbach (@nhartenbach) October 13, 2015
@nicolempetroff How do you show amenity-based pricing online (ILSs or your website)? Referencing the PM software availability feed. #AptChat — Mike at 30 Lines (@30lines) October 13, 2015
@30lines Typically we just show a range. The amenity-based pricing is more internal. It’s not listed/broken down on sites or ILSs. #AptChat
— Nicole P. Hartenbach (@nhartenbach) October 13, 2015
@nicolempetroff We’d love to be able to show customers why a specific unit costs $75 more, but we usually don’t get that info. #AptChat — Mike at 30 Lines (@30lines) October 13, 2015
@30lines That’s where having a great leasing team comes in. They’re able to communicate the value. #AptChat
— Nicole P. Hartenbach (@nhartenbach) October 13, 2015
@nicolempetroff For sure! Do you have some tips you might be able to share with the rest of us? #AptChat — Apartment Chat (@AptChat) October 13, 2015
@AptChat Really dig in to needs/wants before discussing everything that’s available. We call it “Diagnostic Leasing.” Personalize. #AptChat
— Nicole P. Hartenbach (@nhartenbach) October 13, 2015
@AptChat We use LRO, so it’s a lot of supply, demand, market movement, etc. Challenging for leasing teams, great for NOI #AptChat — Khara (@leftnwrite08) October 13, 2015
@leftnwrite08 Any tips for communicating the pricing when the prices are changing every day? Are more people getting used to that? #AptChat
— Apartment Chat (@AptChat) October 13, 2015
@AptChat Knowing (thinking) they’re getting a deal on that price that might have changed helps. But also explaining WHY it changes #AptChat — Khara (@leftnwrite08) October 13, 2015
What are some good techniques to help you sell your price, especially if you use rev mgmt or know rates are going up soon?
@AptChat A2: Know your value. Yes, the price may be “high,” but look at the demand for what YOU have to offer. #AptChat
— Khara (@leftnwrite08) October 13, 2015
Are there any amenities that you see residents don’t place as much value in? Feels like we’re in an amenities arms race these days! #AptChat — Apartment Chat (@AptChat) October 13, 2015
Depends on ideal resident preferences. There is no one size fits all so market the right amenities to the right audience. #aptchat
— Nicole Mintiens (@Tregesy) October 13, 2015
What are some good ways to apply psychology to leasing (creating urgency, FOMO, etc.)? Any you’ve found work really well?
@AptChat A3: Everyone wants what they can’t have. If they know someone else is looking, they’re more aggressive in making decisions #AptChat — Nicole P. Hartenbach (@nhartenbach) October 13, 2015
A3: Again, know your market. Yeah, there’s 30 other places, but what’s the rep? Who has what they want? What’s the value? #AptChat
— Khara (@leftnwrite08) October 13, 2015
A3 (cont): And target options. Yes you have 10 2B2B but only 1 w/ everything they want. Oh, and 3 other people are looking at it. #AptChat — Khara (@leftnwrite08) October 13, 2015
Do you offer other “products” or services to help increase ancillary revenue? What are your favorite ancillary income ideas?
@NAAhq has an awesome article on creative ancillary income ideas: Five Creative Ways to Increase Cash Flow http://t.co/Sr7ih9qMHX #AptChat
— Khara (@leftnwrite08) October 13, 2015
A3: RE: Psychology & Conversion Centered Design – Get this free eBook by @oligardner http://t.co/rPZx1bHpVK #aptchat pic.twitter.com/LS7rHF7DrP — Nicole Mintiens (@Tregesy) October 13, 2015
@AptChat Test concepts over tactics. Seek to understand ideal users’ motivations/behaviors via ongoing research and testing. #aptchat
— Nicole Mintiens (@Tregesy) October 13, 2015
Our next #AptChat will be Tuesday, October 20, 2015 at 12 pm Eastern. In the meantime, be sure to sign up for #AptChat updates to get these recaps and more delivered straight to your inbox!