Apartment Leasing
Another Leasing Commission Rant
I have railed about commission based sales in the multifamily space for years.
It’s a worn out model. But people keep finding premise after premise to keep it alive and kicking. It’s broken
The article below clearly demonstrates that the model is broke:
Pricing and Sales: An Interesting Interplay in Multi-family – Multifamily Blogs
That’s an “elephant in the room” that we need to talk about. Most salespeople only benefit from sales going up; but our leasing associates can sometimes feel like they’re being penalized for their own success. They lease well, so the pricing system raises rents which makes it harder to lease. This is not “normal” in most of the sales world, so we should be purposeful and address this very real situation with our leasing associates.
But to keep things alive and kicking; it goes on and on with suggestions about how to make leasing professionals feel okay about it. Here is the cold-hard truth, they feel penalized because the business model is different yet the compensation plan is the same. Let’s face it, money in the bank is the only thing that makes a sales person Phappyrrell [Read: Happy].
We need to stop and think about the compensation system that makes sense in the context of the new model. It’s that simple. It’s that clean. But it’s not that easy. Really not that easy.
Drop leasing commissions – make them a thing of the past. Raise base wages to offset lost commissions (take a two-year trailing average of all commissions paid and tally an average increase – tweak where necessary) and move on.
Your looking to push the edge with leasing commissions Multifamily Maniac,
M
How do I Lease More Apartments Part 2
People want to understand what they are paying their hard-earned money for.
And when they understand – they have no issue laying it down and leasing your apartment.
When they don’t understand the following happens:
1. Your price is too high
2. People don’t return your calls
3. They reject your closing attempts
4. They need to look around
5. They need to consult their partner
Your encouraging you to become a steward of information Multifamily Maniac,
M
How do I Lease more Apartments?
Wrong question.
The better question is; why do people lease Apartments?
Why do they buy? It’s all that matters.
Short answer: Like.
And I don’t mean the Facebook kind of Like. No, I mean the kind of like that falls just shy of, will you go to the dance with me – Like.
It is the single most powerful piece of the sales process.
Get them to like you and that leads to trust.
And that is why people lease apartments.
So the next time you catch yourself asking the question, how do I lease more Apartments – think rather about how you get more people to like you.
Your always looking to lease more apartments Multifamily Maniac, M
Stop Worrying About Closing Ratios
“The score will take care of itself” – Bill Walsh
Basketball
I had the great privilege of playing basketball all the way through NCAA Division 1. It was the absolute thrill of a lifetime. And I have a ton of memories that I will carry with me for the rest of my life but there is one that sticks out more than others.
The Score
It’s obvious that the team with the highest score at the end of the basketball game is the winner. But in the game there are two types of players. One that keeps his or her eye the scoreboard the entire game; and another that just plays for the love of the game.
My high school coach loved Bill’s quote above. He drilled it into our heads. He would remind us that it was his job to pay attention to the score; it was our job to play the game.
Leasing Apartments
To those of you who lease apartments for a living; it is the job of your property manager and your senior leaders to pay attention to the score. It’s their job to make sure that you have all the tools necessary to score leases. It’s their job to make sure you are well-trained, properly attired and ready for the game.
On the other hand, it is your passion your commitment and your responsibility to lease for the love of leasing. For the love of helping people. For the joy and thrill of finding the perfect apartment for your client. Forget about closing ratios – they will take care of themselves.
Your score will take care of itself Multifamily Maniac,
M
Mystery Gifts
One of the things I love about the multifamily business is the creativity. I love it when property managers, assistant manager and leasing consultants express themselves through marketing. I especially love it when the customer is wow’d by their efforts.
The Box
An email crossed my desk today with this picture attached. The box has vintage candy inside that includes the likes of; candy buttons, candy cigarettes and kits taffy chews just to name a few. And when the PM hands the box to a customer she explains that the candy is a unique find – just like her property – Ely Walker. Ely is a vintage St. Louis building that converted to condos and apartments with street level retail and underground parking. Uber-cool.
Your lovin the creative vintage correlation Multifamily Maniac,
M
