Apartment marketing

#apartmentbudgeting: Think Value

Mike Brewer · August 10, 2011 · Add Comment

Short and sweet budget tip for 2012…

When thinking about your marketing spends in 2012 think in terms of what will bring value to your ideal resident in lieu of what your absolute spends will be on print, internet, social media and the like.

Apartment Loss to Lease – How do you book it?

Mike Brewer · August 10, 2011 · 5 Comments

In the spirit of the upcoming 2012 budget season; I wanted to recycle this post. This is a subject of much debate in our office and I am interested in what the industry thinks.

Loss to Lease

There is a question floating around our office along the lines of, “What do you book in loss to lease line of your budget?” Also, “On a percentage basis, where do you like to see that number trend?” With that question comes a number of schools of thought but no real definitive answer. And, that being said, I am not sure there is a right way or a wrong way to look at it. In the end, it all shakes out in the Rental Income line. That said, there is value in tracking the discount from new vs. renewals and even budgeted rental increases that drive the loss to lease margins.

Our current practice is to book both discounts from new sales and renewals to a single loss to lease line. And, we try keep the loss to lease number at two to three percent of the the gross potential or top line – if you will.

Here are a couple of schools of thought to throw out there:

What gets booked in loss to lease?

1. The only thing that gets booked in the loss to lease line is discounts from market on new leases only. Renewals that maintain any discount from the top line should be booked as a concession.

2. Any discount from market gets booked as an upfront or recurring concession – be it a new lease or a renewal that transacts at a rate lower than the top line.

Where should loss to lease trend as it relates to the top line?

1. The number should be maintain between two to three percent of your top line

2. The number will trend at nearly ten percent of your top line

Is there real value in tracking loss to lease as a line item?

If it all shakes out in the rental income number – is there any real value [up market or down market] to tracking this number?

I’m curious to hear your thoughts. I am really curious to hear from those of you that are utilizing LRO as I think you have done away with the concept of loss to lease – correct?

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#apartmentmarketing: Social Media Proof

Mike Brewer · July 18, 2011 · Add Comment

The next time you hear a social media myth, question it. Ask for the proof, and ask out loud. – Dan Zarrella

So much flying around out there in the way of experts, guru’s, master’s of the universe and the such.

My new default gauge for validation; can I talk to a client that used your service prior to social media taking front and center? And, if that answer suffices; then you can show me your social media results and pass along another client testimonial or two.