Apartment building is a challenging industry, but it doesn’t have to worry about competing with Amazon yet. The e-commerce giant and its competitors have revolutionized the retail industry, prompting traditional retailers and landlords to respond by providing perks and services that online competitors can’t match: a more personalized, in-person shopping experience. Retailers have realized that even customers who would rather stay at home would become loyal if they provide outstanding service and unique products.
Although retail and multifamily real estate is distinct asset classes, investors in both should take note of the lessons retail investors may learn from the profound changes brought about by e-commerce. Due to the anonymity of online shopping, businesses have found that providing social connections, customer service, and unique experiences such as lounge areas, micro art exhibitions, lectures, and performances is a great way to set themselves apart and attract customers.
Homeownership is no longer the pinnacle of success for many in today’s America. The Tax Cuts and Jobs Act of 2017 reduced the tax burden on working families, making it more affordable to rent high-end homes for many Americans. Generation Y is delaying the start of their families, while empty nester Boomers aren’t interested in settling down again. However, regardless of age, it’s a shared desire among renters that their dwellings have the same comforting, familiar qualities that homeowners take for granted.
It shifts the focus of renting from a purely rational process to a more personal one, highlighting the need for customer service for the success of the multifamily real estate industry. Tenants with a positive experience will remain, participate, and tell others about the building’s amenities. Landlords are provided with a steady source of income, plus other perks, which are helpful for real estate asset management, such as holding or preparing a property for sale.
One must consider factors beyond production alone and ensure the sinks and fridges in an apartment operate. Residents pick the neighborhood because they feel it contributes to and improves their unique brand and sense of self. When people visit a place, they want to be able to kick back and make some memories with their guests. The real estate asset management staff and professional property managers work tirelessly to ensure that residents of our multifamily buildings enjoy positive, enriching, and unforgettable stays.
The following are the four actions to accomplish this:
Action 1: Provide Exceptional Customer Service to Your Clients
Service to customers is the deciding factor. Asset managers for real estate should hire, train, and oversee their sales and management staff with a service mentality in mind. Throughout their tenure as renters, these experts must maintain open lines of communication. Our managers, for instance, regularly poll new tenants and re-survey current tenants when renewals are due, or maintenance is required. Managers who try to get to know their tenants personally and welcome them by name whenever they interact with others in the building are more likely to have satisfied tenants. An enthusiastic greeting is unparalleled.
Even bonuses and presents have that individual touch. For instance, instead of ordering generic welcome baskets in bulk, they customize them with specials from nearby businesses and give them to the new tenants when they move in. The property managers find creative methods to add services, such as allowing a dog-grooming service to set up a station in a vacant area of the property to strengthen ties with renters and make life easier for them. Tenants can foster a sense of community and better use the building’s resources by organizing cooking or yoga classes, for example.
Action 2: Create a Community
Property managers are tasked with organizing community-building activities, emphasizing those that use shared areas to benefit all tenants. Events should include everything from pool parties and potluck meals to viewing “The Bachelor” and “Game of Thrones” while residents bring their pets as icebreakers. In exchange for reduced rent, some properties employ event planners to coordinate onsite activities for their tenants.
Action 3: Employ the Principles of Experiential Design
Volunteer work alone won’t set you apart in a competitive rental market if all you need is a bedroom and a couch. We foresee ways around obstacles while assessing a potential investment’s size, layout, and facilities. An experience layout considers potential social, work-from-home, and leisure activities. The layout ought to be functional for the intended purpose. It’s important to have easily accessible countertops, shelves, and drawers. To that end, light switches and electrical outlets will not be placed in inconvenient spots. Investment properties lacking these qualities will need to be improved before they can be considered viable options.
They also frequently reconceive public areas. The physical characteristics of a building can significantly contribute to the sense of community among its tenants. Providing amenities like dog runs and washing stations brings pet owners together and is a win-win for everyone. Coffee shops with bottled water, snacks, and even beer on tap, background music playing in the lobby, and a video board advertising upcoming activities are great ways to get people chatting with their neighbors.
The experiential design includes the use of technology, but that technology must have value and utility for the tenant. In addition to having access to the internet at lightning speeds, it is essential to have a dependable technology that streamlines daily tasks. With innovative home technology, residents can quickly welcome service providers like dog walkers and dry cleaners. Increased gym attendance can be expected with the introduction of streaming on-demand workouts. The luxury apartments and townhomes we provide in Atlanta’s northeast are equipped with keyless entry systems, smart thermostats, and charging stations for electric vehicles.
Action 4: Add a Social Media Dimension
You should provide social media updates now that tenant events and amenities are available. Photos like these are compelling narrative tools, especially when paired with first-person accounts from locals. These recommendations ultimately result in the arrival of brand-new renters. Google and Apartments.com reviews are now practically priceless due to their conversion power. 91% of renters said that online reviews influenced their decision in their most recent apartment search, and 86% of millennials said they trusted online reviews from total strangers as much as they were from friends and family.
Although millennials now dominate the rental market, property owners that put in the time and effort to provide a positive resident experience are likely to attract Baby Boomers looking for smaller homes in thriving communities. Although Amazon has joined the fray, they are still one step ahead. The business has invested in modular housing and now offers a wide variety of sheds, cabins, tiny houses, and even a backyard guesthouse kit to the general public. However, protecting one’s territory from any disruptive force focused on the customer experience is an excellent strategy for property investors.
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