All posts by Multifamily Innovation®

01/052022

Finally, Apartment Leasing Teams Can Do What They Do Best Without Missing Calls

Properties are facing more challenges today than ever before with residents not paying rent, the struggle to keep up with the competition, and making sure units are fully occupied.

One problem seen today is that many leasing offices are currently understaffed, leading to record-breaking rates of missed calls at a whopping 49%.

Even offices that have full staffing still only have a certain number of hours each day that the office is open.

One of our clients, LeaseHawk is a multifamily software company, and in a recent interview offered shocking statistics regarding tenant interactions: 87% of callers won’t leave voicemails and 52% won’t call back if you missed their first call.

Each missed call, LeaseHawk says, is a missed opportunity.

“Prospects typically begin their home search online,” explained Larry Gorman, President of LeaseHawk. “In fact, research shows that four out of five renters use online resources to assist in their home search. So, when a prospect decides to call, they are highly motivated and more likely to be ready to convert to a tour and sign a lease.”

But the software helps with more than funneling potential renters through to schedule tours; it also sifts out the 30% of calls to leasing offices that are NOT made by prospects.

LeaseHawk uses data and artificial intelligence to change the way technology is used in multifamily. The company aims to benefit both the renter and the property owner by making the prospect vetting and lease signing processes more efficient.

That’s done with a virtual apartment leasing assistant that LeaseHawk calls ACE, which answers phone calls, acts as a chatbot, and automatically responds to text messages.

It’s the only software of its kind that answers prospects on all three of those channels. It also offers call tracking, call routing, and a full IVR system.

Those interactions can lead to the collection of information about a prospective tenant and can even schedule tours.

Gorman states, “The use of virtual leasing tools is now more widespread than ever. Some even say that 10 years of multifamily technology was created in just 100 days due to the pandemic. Prospects are more than willing, in fact they are seeking, to get instant answers and information from digital resources to make their rental decisions.”

LeaseHawk says 73% of Millennial renters believe they should get a response within a day or less. And, as we mentioned, most are unlikely to call back if they don’t get through on their first attempt.

A vast majority of prospects are also intolerant of being placed on hold for a long time or having to repeat the same message to multiple representatives.

Responding to callers under those circumstances and time constraints is only possible with the use of AI software or some form of automated technology.

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01/032022

How Rent Delinquency is Affecting Profitability and Beyond

Article, Sponsored Multifamily Investing, Multifamily Operations, Multifamily Investments, Multifamily

Rent delinquency is increasing and as we all know, resident priorities are shifting as well. This is causing the multifamily industry a lot of uncertainty during a time of already rapid change. Due to these changes in wants and expectations, companies must start strategizing for the future to ensure profitability and continue to create places that residents want to live.

It is always important to listen to the customer, which is something that is often overlooked in this industry. Yet it is also important to make sure that they are following their agreements by paying rent on time and that they have the ability to do so. Everyone is looking to raise rents to meet certain revenue goals; however, there are other issues going on beyond the scope of rent increases.

We invited one of our clients, Lisa Strauser from CredHub to speak on what they are doing to alleviate some of these stressors.

CredHub is a service that companies in the multifamily industry incorporate to help reduce multifamily rent delinquency. It works by associating rent payments to tenants’ credit reporting agencies. For most tenants, that’s a great thing – it allows them to use their largest expense as a way to improve their credit scores, just as mortgages do for homeowners. For others, it’s the extra incentive they need to pay their rent on time, so their credit score isn’t brought down by a late or missed payment.

Lisa Strauser is the Sales Director for CredHub. In this recent interview, she discussed some of the ways the multifamily industry is struggling, as well as how it can improve.

Strauser says the way to make sure properties aren’t bleeding out revenue to delinquent payments is to make sure their tenants are truly held accountable for their rent. If they aren’t held accountable, there’s no incentive to make their rent payment a priority among their list of bills.

By implementing resident credit reporting, Strauser says that the accountability factor is put in place immediately. In fact, she says properties that implement CredHub’s technology see the delinquency rate lower within a period of just 60-90 days.

“The delinquency rate naturally reduces when there is finally a consequence for not doing what one is supposed to be doing,” explained Strauser.

CredHub also goes above and beyond by impacting credit scores for previous tenants who still have an outstanding balance with the property.

“Impacting their credit for balances owed has a way of motivating people to pay outstanding expenses to remove it from their credit report,” said Strauser.

She says that although CredHub aims to ensure rules are followed, the company’s work isn’t about punishment – on the contrary, it’s about helping boost those who are paying on time, typically boosting FICO scores by 42 points. It levels the playing field between renters and those with mortgages who see improvements for on-time payments on their living space. Some people are credit invisible and can use this as a way to leave their mark.

“For those with established credit profiles, the increase in FICO scores leads to an offering of better interest rates on credit cards and higher credit limits,” said Strauser. “For those without social security numbers, in assisted properties, or lacking social security numbers, it establishes for the first time a credit identity by rewarding them for their timely rental payments.”

Strauser also argues that CredHub can, in some instances, be the final deciding factor in where someone wants to live. It should be included as an amenity, just like a pool or gym, since it’s something intended to improve the residents’ lives. If a potential renter knows they’ll pay on time, they would see an enormous benefit in renting from a property that offers CredHub. Likewise, the usage of that technology would discourage those who know they may not pay on time, meaning the property gets a higher quality tenant.

By using services like CredHub, properties can incentivize residents to pay on-time, increase resident retention and create a competitive advantage for their property. Services like these are paving the way for residents to get credit for one of their most costly expenses and to hold others accountable who may have fallen behind.

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12/172021

Reduce Rent Delinquency by 50% and Get Control of Post-Move Out Collections

Podcast Multifamily Investing, multifamily technology, Multifamily, proptech

This episode of the Multifamily Innovation Show with Patrick Antrim features Lisa Strauser, who works with CredHub. Antrim points out that rent is increasing at the same time that people are facing financial challenges through the pandemic. Meanwhile, property managers are looking for ways to keep their net operating income up.

12/142021

Why Property Management Teams Need to Stop Depending on Emails

Article, Sponsored Multifamily Innovation, multifamily technology, Multifamily Operations, Multifamily, multifamily leasing

Recently, our client BetterBot put forth a bold statement: “Property management teams need to stop depending on emails.” The company released an explanation for their challenge, but we wanted to learn more about the thesis.

BetterBot is a Marketing and Leasing Automation Software that replicates your best leasing agent and allows customers to inquire about apartments and homes and receive an instant answer at any time of day or night. There are over 200 property management companies already signed on with the company. The business says its BetterBot for Web solution helps find prospective renters who are more qualified, increases the time it takes to secure a lease and frees up team members to focus on other work.

We set out to learn why improving this may benefit the multifamily industry. We spoke with Trevor Park, the Head of Marketing at BetterBot. He says emails are, put simply, failing.

“Ultimately, it comes down to response time and staying top of mind,” explained Park. “Response time instantly drops for communities after-hours, and most of them do not have any sort of nurture campaign to ensure they stay top of mind. Even with a nurture campaign or quick response times, it can be challenging for property management companies to stand out in a sea of crowded inboxes. Not to mention the work involved for the leasing teams to maintain and track follow-ups if they don’t have a solution that can help with both of these.”

There are some obvious ways the days of the multifamily chatbot have been reigning supreme. With people browsing on their phones looking for new places to live, they expect answers quickly. Office hours only cover a specific portion of the day, and with today’s technology, people just don’t want to wait. If they send an email late at night and the property doesn’t answer until the following day, they could lose interest. Automation helps accommodate the immediacy of the modern era.

But BetterBot presents some other compelling arguments, too. For instance, promotional and branded emails are often filtered out and automatically sent to the spam folder, defeating the purpose of creating it in the first place. BetterBot has worked to ensure their emails make it to their inboxes by working directly with the major email providers. Email boxes can also get over-crowded, and the vast majority of people tend to delete marketing emails without ever opening them. It can also be challenging to categorize leads well enough to pay proper attention when property management teams are flooded with emails each day.

“The problem isn’t necessarily with how Property Management teams handle emails; it is the volume of emails and leads that come in for them,” explained Park. “Take any specific property and look at the average number of inquiries that come in. How can one leasing agent tell the difference between those ready to convert and those just shopping around?”

He says many of those emails are simple questions that automation can quickly answer through lead nurturing or the use of a chatbot. That’s not only better for the client; it clears out the property management teams’ inboxes of tedious work so they can more aptly focus their efforts. On average, leasing automation saves between 56 - 60 hours per month for a single property.

“These menial tasks take away from the qualified and engaged prospects that the property management teams can be engaging with to build a strong relationship and ultimately convert them to a resident faster than the window lookers,” said Park.

BetterBot recently launched their newest product, BetterBot for Leads, geared towards leads coming in through a community’s marketing sources, such as Apartments.com, Apartment List, or Zillow.

The leads are the element property management teams are most likely to lose as they get bogged down in small, simple tasks that add up to take a significant chunk of their day. Rather than having a person send a quick question and lose interest as they wait for a response, BetterBot’s instant-response AI gets the preliminary steps out of the way. Then, prospects are more ready to move forward and talk with the leasing team more meaningfully. As BetterBot puts it, by giving them time back in their day to do what they do best, be human.

“BetterBot for Leads can then help nurture those leads and sort through the prospects to provide the leasing teams with the ones that have the highest likelihood of converting so they can focus on engaging with those prospects first for easier wins,” said Park.

Park says it’s all about identifying the pain points and bottlenecks that sap efficiency when it comes to leasing. Here, he says, pairing automation with human touch solutions can save the day. It’s not a one or the other solution but rather a partnership that can help improve efficiencies and drive more substantial ROI.

“BetterBot for Leasing replicates your best leasing agent and gives your leasing team time back in their day by responding to and nurturing the leads at the top of the funnel. When automation nurtures a lead effectively, team members can focus on high-value tasks, such as tours, move-ins, and resident retention.”

Automation for marketing and leasing, it seems, is the future of multifamily. BetterBot says 56% of website traffic happens after property management offices have closed up for the night. It’s impossible to compete with companies whose customers have 24/7 access to answers and communication. The final argument would be simply for the loss of human touch a chatbot may have. There, again, BetterBot has a solution. Since property management teams are no longer overwhelmed with the low value, menial tasks, they can be more engaged with the prospects that have scheduled a tour, are ready to convert, and ultimately build the relationship with the resident. It’s a chance, the company says, to “infuse authenticity into customer interactions.”

Although emails likely aren’t going anywhere, software like BetterBot’s can help make old tech function better. If your email inbox is less crowded, you’ll be able to focus more on what’s in there. The logic is tough to argue with. So at Multifamily Leadership, we concede BetterBot may be right: property management teams need to stop depending on emails.

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Did you know that 300 billion emails are sent each day, but only 18% are opened? Most property management teams today are too dependent on email. Usually, they see how much time and energy email takes, but don't know how to break the cycle.

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08/202021

Why Leasing Agents Love This New Way Of Work

Featured, Technology, Leadership, Multifamily Investing, Podcast Leadership, multifamily technology, Multifamily Operations, Multifamily, Podcast

Today, we will explore a whole new set of questions for how we maximize leasing operations. Our guest today is Larry Gorman, Senior Technology Executive. Larry has 25 years experience in the multifamily industry and currently serves as the President for LeaseHawk.

08/122021

A Technology That Helps Identify Quality Leads and Convert More Rentals

Featured, Technology, Leadership, Multifamily Investing, Podcast Multifamily Innovation, Multifamily Leadership, multifamily technology, Multifamily Operations, Multifamily

Today’s renter wants control over the leasing process and access to information wherever, whenever, but today’s leasing team simply can’t keep up. On this episode, Patrick Antrim and Robert Turnbull explore Multifamily’s most adopted digital leasing solution providing renters the information they want 24/7/365 anywhere on the Internet.

07/122021

It’s Not About Bringing New Technology to the Game, Let’s Change the Game

Featured, Technology, Leadership, Multifamily Investing, Podcast Multifamily Innovation, Multifamily Leadership, multifamily technology, Multifamily Operations, Multifamily

The multifamily industry is changing, and it’s important to change with it. To do that, you should keep an eye on the way society is changing as a whole, the differences between generations, and the types of things people are already interested in.

07/082021

Investments at Different Stages of the Apartment Lifecycle

Featured, Technology, Leadership, Multifamily Investing, Podcast Multifamily Innovation, Multifamily Leadership, Multifamily Operations, Multifamily Investments, Multifamily

Real estate is a unique industry that faces unique challenges. When you seek out new technology, you should be careful about the investment. Tom Spahn talks about what to look for in the investments and commitments you make, how to know whether that product will be a good fit for your company long-term, and how to spot a truly great team.

06/162021

The State of Multifamily Tech

Featured, Technology, Leadership, Multifamily Investing, Podcast Multifamily Innovation, multifamily technology, multifamily smart home, Multifamily IOT, Multifamily Operations, Multifamily Investments, Multifamily

Multifamily has typically been a low-risk operating class, but multifamily operators are facing new challenges.

06/112021

Create an Experience Residents Never Want to Leave

Featured, Technology, Leadership, Multifamily Investing, Podcast Multifamily Innovation, Multifamily Leadership, multifamily technology, Multifamily Operations, Multifamily Investments, Multifamily

Right now, Daryl Smith is working to create a fully-integrated omni-channel marketing platform, while also growing the name for his multifamily development plan. He is reimagining the Multifamily consumer experience.