What Modern Property Management Business Looks Like Today
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The modern renter is here! Is your business ready to meet their needs? In today's rental market, tech-savvy millennials make up a large portion of the demographic - a generation with different expectations. This presentation offers insight into what the modern renter expects and how to go about meeting those expectations.
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What Modern Property Management Business Looks Like Today
- 1. v A LOOK AT THE MODERN PROPERTY MANAGEMENT BUSINESS
- 3. THE PROBLEM IS CHANGE THE MORE RAPID THE PACE OF CHANGE THE MORE DIRE THE CONSEQUENCES OF STUBBORNLY STICKING TO OLD WAYS ENTERPRISES THAT DO NOT ADAPT ARE IN FOR A LOT OF TROUBLE
- 4. Is Your Business Ready?
- 5. MILLENNIALS AT A GLANCE BORN APPROXIMAT ELY 1982– 1995 MAKE UP 25% OF THE POPULATIO N CHILDREN OF BABY BOOMERS AND GENERATION X
- 6. THEY DON’T LIVE THE SAME WAY AS THEIR PARENTS. TECH- SAVVY PERSONAL RIGHTS ACTIVISTS INTERESTED IN PUSHING SOCIETY AND BUSINESS FORWARD Millennials are a class of their own, different from their parents. They are: And they give back to the world they live in. 87% OF MILLENIALS GAVE TO CHARITY LAST YEAR.
- 7. Millenials check their smartphones >43 times a day AND SHARE SIX PIECES OF CONTENT VIA SOCIAL MEDIA “HOW LATE IS TOO LATE TO TEXT ABOUT THE LEAKY DISHWASHER?” They will be living in your units, paying you rent, and asking questions like: …because the average Millennial sends 20 texts a day. They expect you to be Mobile!
- 8. SO, WHAT DOES THE MODERN RENTER WANT? New ways to utilize their technology and gadgets (most important!) Other ways to get ahold of you besides coming into your office Housing that complements their diverse lifestyles New amenities
- 9. DREAM OF OWNERSHIP IS NOT DEAD …JUST POSTPONED MORE AFFORDABLE & FLEXIBLE FEAR OF COMMITMENT AFTER THE HOUSING MARKET CRISIS They are in a renter state of mind because: AND OF THOSE, 90% ARE RENTERS. MILLENNIAL S MAKE UP 40% OF THE HOUSING MARKET.
- 10. LIFESTYLES The Millennial generation covers a large span of ages. They cook more and dine out less. Location and walkability are really important to them.
- 11. THEY USE SMARTPHONES TO PAY THEIR BILLS... A February 2014 study by TD Bank found that 88% of 18–34- year-olds used online banking to pay bills, among other uses. AppFolio users that promote online payments see over 70% paying mobile OFFERING ONLINE APPLICATIONS AND RENT PAYMENT IS A MUST.
- 12. MAKE SURE YOU’RE MOBILE-FRIENDLY! 52%: Bad mobile experience made them less likely to engage with a company. WE’VE INVESTED HEAVILY IN RESPONSIVE AND MOBILE WEBSITES FOR OUR CUSTOMERS. 4 in 5 Millennials own smartphones 48%: Sites that didn’t work well on their smartphones made them feel like those companies didn’t care about their business. 1 in 5 MILLENNIALS ARE MOBILE-ONLY USERS
- 13. THEY LOVE THEIR TECHNOLOGY. More than 74% of Millennials feel that new technology makes their lives easier. 54% think new technology helps them stay closer to friends and family.
- 14. Owners and Investors expect more I want a modern PM that will use technology to…
- 15. I want a modern PM that will use technology to…Find High Quality Residents BETTER ONLINE MARKETING FILL VACANCIES FASTER ATTRACT THE BEST RESIDENTS WITH SERVICES & REPUTATION FOCUS ON RESIDENT RETENTION
- 16. I want a modern PM that will use technology to… DIFFERENTIATING SERVICE ONLINE ACCESS TO REPORTING PROPERTY PERFORMANCE METRICS INSURANCE TO PROTECT PROPERTIES ONLINE PAYMENTS & FASTER DISBERSMENT
- 17. THE PROBLEM IS CHANGE THE MORE RAPID THE PACEOF CHANGE THE MORE DIRE THE CONSEQUENCES OF STUBBORNLY STICKING TO OLD WAYS ENTERPRISES THAT DO NOT ADAPT ARE IN FOR A LOT OF TROUBLE
- 18. 1950s In a time of corner shops, small business “Marketing” was dominated by PTA meetings and word of mouth. Service was the ultimate differentiator and a poor reputation would kill a business.
- 19. 40 years
- 20. 1990s Any company could market their business to the world with a simple website. Big box scores sprouted, offshore call centers emerged and as the consumer lost the powerful “word of mouth” service plummeted.
- 21. Today Social Media and Mobile Access is creating an ecosystem that rewards good manner, high touch, honesty and integrity THE POWER HAS BEEN RETURNED!
- 22. + 600 Million added last year 6.8 Billion mobile subscribers 2.1 Billion mobile web users Population 7.2 Billion
- 23. switch due to poor customer services of all internet activity originates from mobile devices use one or more online channels when researching companies’ products and services 51% 60% 75%
- 24. How could I possibly learn all of these ??!
- 25. Embrace Change Change your focus to anything that helps you save time and do the unexpected… care. Ignore the past and incentivize future behavior. Re-brand your company. Get rid of “I’m the best” and replace it with results.
- 26. Change is hard
- 27. THE PROBLEM IS CHANGE THE MORE RAPID THE PACE OF CHANGE THE MORE DIRE THE CONSEQUENCES OF STUBBORNLY STICKING TO OLD WAYS ENTERPRISES THAT DO NOT ADAPT ARE IN FOR A LOT OF TROUBLE
- 28. GETTING STUCK IN THE PAST “My residents have never been comfortable paying online, they aren’t the right demographic. For those that do, I charge a convenience fee.” AVOID
- 29. … of mobile users purchase online … of Americans made a purchase online
- 30. US mobile payments expected to reach $90B by 2017 - Forrester Research
- 31. GETTING STUCK IN THE PAST “My residents have never been comfortable paying online, they aren’t the right demographic. For those that do, I charge a convenience fee.” CLUES YOU ARE… “I have an online application, it’s a PDF on my website.” “This is the way I have complete this task for 30 years.”
- 32. 5 Ideas To Change Behavior 1. Free online rent payments / $2.50 processing fee for checks 2. $5 discount to application fee for online app 3. Eliminate available paper apps & setup office terminal 4. Require maintenance request through Resident portal 5. Mandate your top 5 vendors: 1) Email invoices 2) Pay Electronically
- 33. Opportunities
- 34. Great Time To Be In Property Management
- 35. -0.2 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65+ HouseholdShortfall (millions) Millennials! 90% will rent vs buy
- 36. IT’S A GREAT TIME TO GROW MILLENIALS ARE GETTING JOBS Demand is solid Supply is increasing MILLENIALS ARE FORMING HOUSHOLDS MILLENIALS ARE NOT BUYING HOMES YET Demand 119 Million Supply 115 Million RENTS ARE RISING
- 37. How are you differentiating yourself from the competition?
- 38. About Us • We have been in Real Estate for 30+ years • Best management in the area • We will get the most out of your investment • Coordinate and complete necessary maintenance • Collect rent, serve late notices and prepare reports Real Awesome Management
- 39. CONVENIENT PROPERTY SHOWINGS AND APPROVALS We can process an application, check rental history, credit, eviction & background, and sign an electronic lease on the spot in 5 min! FREE EASY ONLINE RENT PAYMENTS You get paid faster and residents love it. ONLINE MAINTENANT REQUESTS & 24HR ANSWERING Handling maintenance quickly saves additional damage costs and leads to resident retention. We know happy residents take better care of your investments and renew more often.
- 40. Thank You!
Editor's Notes
- 35% of households rent 43 million renters NAR predicts 5-6 million new housholds great news, truth is everyone, from residents to investors expects more from you and your business. We’ve had the pleasure to work with thousands Property Management Companies and Investors over the years and it’s really been exciting to watch the changes in our industry and help our customers stay ahead of market trends. Today 35% of all households in the US are renters – that’s 43 million renter households! And the National Association of Realtors predicts that the industry is on track to create 5 to 6 million new renter households in the coming years. This is all great news for companies like yours but the truth is that this new generation of renters has different needs and everyone, from residents to investors expects more from you and your business.
- Business in every market is changing. It is estimated that about 80 million Millennials will hit the rental market in the near future. But it’s not just the Millennials -- all of your customers are increasingly mobile and expect you to be as well. It can be challenging to meet the changing needs of owners and residents and technology is quickly becoming the competitive advantage! Businesses who aren’t maximizing technology will fall behind - it’s that simple. So… let’s talk about how each of the categories is effecting property management today
- Born 1982 to 1995 Make up 25% of the population Children of Baby Boomers and Generation X Although Millenials are often dismissed as entitled, self-absorbed and sheltered, they’re more than 80 million strong and will outpace the Baby Boomers in the impact they’ll have on the workplace Why is it important to talk about them? How many of you are M’s? Work with? Rent to?
- US CHAMBER OF COMMERCE RESEARCH REPORT: - If each generation has a personality, you may say that the baby boomer is the idealist, shaped by Woodstock, JFK, RFKS, and MLK. - Generation X is the skeptical independent, shaped by latchkeys, Watergate, and the PC. - Gen Y / Millennials - is the connected, diverse collaborator, shaped by 9/11, texting, and the recession. Millennials are a class of their own, different from their parents. They are: Tech savvy Personal rights activists Who want to push society and business forward And they give back to the world they live in; 87% gave to charity last year. And even more interesting – 63% of Millennials donating prefer companies that also donate to charity – marketing opportunity!
- The Millennial is the Modern Renter. Knowing this is the first step towards better marketing your services to them. They will be living in your units, paying rent and asking questions like, “How late is too late to text about the leaky dishwasher?” …because the average Millennial sends 20 texts a day. + Millennials check their smartphones 43 times per day + On average, millennials share six pieces of content via social media a day,
- They want: New amenities Housing that complements their diverse lifestyles New ways to utilize their technology and gadgets (most important!) Other ways to get a hold of you besides coming into your office.
- Make up 40% of the housing market today 90% of them are renters the dream of homeownership isn't exactly dead. It is just being postponed, especially among the younger millennial generation. More renters now say they rent because it is a more affordable option—this despite the fact that several other reports have shown that in most housing markets, it is cheaper to own. This may be due to the fact that those rent versus buy reports look at monthly payments and income but not at what it actually takes to buy the home Fannie Mae Study - Social changes are taking hold among millennials as well. The number of young renters who say they rent in order to have more flexibility in future choices jumped last year. That share went from 16 percent in 2012 to 19 percent in 2013.
- The Millennial generation covers a large span of ages. Even the youngest ones will soon be thinking about kids. + 10.8 Million have children and are looking for rentals to fit that lifestyle + They cook more and dine out less than Gen X – Modern, updated kitchens can be a big selling point for the 61% of millennials who enjoy cooking + When they go out for an evening, or forgot the milk and have to run back to the store, they like to walk. Location* and walkability are really important to them. + 76% of Millennials reported safe streets as a #1 priority for metropolitan dwelling. <<Callout>> Incorporate Walkscore in your advertising
- A February 2014 study by TD Bank found that 88% of 18-34 year olds used online banking to pay bills, among other uses. Nearly half did it on a mobile device. Help them pay rent on time by giving more options to make payments – 38% prefer to pay online and 22% have never written a physical check! Offering online rental applications and rent payment is a must.
- 4/5 Millennials own a smartphone, which they are probably using to apartment hunt. Make sure your site is optimized for mobile. 52% of users said that a bad mobile experience made them less likely to engage with a company. 48% said that if a site didn’t work well on their smartphone, it made them feel like the company didn’t care about their business. Nearly any way you look at the data, Millennials are more open to embrace and more inclined to engage on mobile devices than their older counterparts. But, it’s not simply that a greater percentage of Millennials use mobile, although that certainly is true. What is most remarkable is the share of 18-34 year-olds that are mobile-only users—an extraordinary 18 percent in November 2013. That’s nearly one in five Millennials that do all of their internet browsing, emailing, Google searching, social networking, and online news reading on a smartphone or tablet. In comparison, only 5 percent of 35-54 year-olds and 3 percent of those 55 years and older access the internet via mobile devices only. We’ve invested heavily in responsive and mobile sites for AppFolio Websites. Think of rising above your competition here – what a great chance this is!
- When asked what made their generation unique, Millennials ranked “technology use” first. Every day, the Modern Renter is solving a problem by using technology. Over 74% feel that new technology makes their lives easier. 54% feel new technology helps them be closer to their friends and family.
- Transition to next slide by leading into – these are some of the ways you can do this while taking advantage of AMP
- Design Note: If you have a better image for listings, we can drop it in here. Highlight Katelyn’s session – Keys to Marketing Your Vacancies Highlight Emma’s session – Resident Retention Customer Panel (right after this session)
- Design Note: If you have a better image for listings, we can drop it in here. Highlight Katelyn’s session – Keys to Marketing Your Vacancies Highlight Emma’s session – Resident Retention Customer Panel (right after this session)
- Update numbers
- Updated these numbers 51% switch due to poor customer service (Accenture 2013 Global Consumer Pulse Survey) 75% of customers use one ore more online channels when researching companies’ products and services (Accenture 2013 Global Consumer Pulse Survey) 33% use mobile devices to access these online channels About 60 percent of all Internet activity in the U.S. originates from mobile devices, and about half of total Internet traffic flows through mobile apps. (CMO Council)
- Design Notes – I would like to have this be shades of black and gray if possible. Can that be adjusted?
- Mobile wallet market Consumers adopt mobile payments when it’s clearly better than the next best alternative.
- We want to help your business grow and evolve, this talk will hopefully help you identify those opportunities to expand your business
- It’s such an exciting time to be in Property Management! 44 Million Rental Units Record breaking occupancy rates And pent up demand of 4M people who will become renters very soon but will not have enough units to live in -- mostly Millennials
- 90% will rent and there aren’t enough rental Concessions are naturally down as well
- US CHAMBER OF COMMERCE RESEARCH REPORT: - If each generation has a personality, you may say that the baby boomer is the idealist, shaped by Woodstock, JFK, RFK, and MLK. - Generation X is the skeptical independent, shaped by latchkeys, Watergate, and the PC. - Gen Y / Millennials - is the connected, diverse collaborator, shaped by 9/11, texting, and the recession. Millennials are a class of their own, different from their parents. They are: Tech savvy Personal rights activists Who want to push society and business forward And they give back to the world they live in; 87% gave to charity last year. And even more interesting – 63% of Millennials donating prefer companies that also donate to charity – marketing opportunity!
- Design Note: Can we clean up the pixilation?
- Market Your Value