Multifamily Innovation

Apartments Are Not Just a Place to Live Anymore, But a Place to Work

by ArticleSponsored
multifamily innovation article

Apartments aren’t just a living space, not just a home. They’re a place to entertain guests, a place to relax, and more recently they are becoming a place to work.

58.6% of the American workforce works remote, and 41% are fully remote. Just three years ago, only 17% of the workforce was fully remote.

Working from home requires a notable increase in space in multifamily apartments. A small home office space at a bare minimum takes 20 square feet and can go up to 40+ easily.

Any work-from-home employee in an apartment, particularly a smaller apartment like a studio, is already making the most of the space that they have. They won’t have those extra square feet in their apartment without making sacrifices.

With 65% of at-home workers working from the bedroom and 31% saying they work in the bedroom more than anywhere else, it makes sense that the best place to add room would be in the bedroom or sleeping area.

Our client, Inova, is making working from home a painless experience even in small, 250 sq.ft. studio apartments. Those apartments don’t need to be 16% bigger to accommodate an office, they need to use their space 16% more efficiently.

With an Inova TableBed, an apartment is able to reclaim 40 square feet of space. The desk for a home office is right there, waiting for the bed to be put up to be accessible.

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It’s difficult to have a professional space in small apartments. A bed does not make for the most professional setting, so a remote worker will often go to a coffee shop to meet with someone. It also discourages inviting guests over spontaneously.

Now there is a way to remove this problem. There is no bed in an Inova-enabled apartment during the day. This makes the most of apartment space, while keeping it more professional than ever before possible.

It’s hard to imagine an apartment without a bed. Often, it takes seeing the apartment in person to realize what this really means.

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“It feels as spacious as if there was an attached bedroom somewhere. Then you pull down the bed, and it’s made, people's jaws drop. They get it.” -Richard Hawkins, Development & Strategy for New Land Enterprises.

The average cost per square foot in a studio apartment is $3.19 in monthly rent. To add a 40 square foot space to allow for a home office increases the value of a studio apartment by $128 monthly or more, without accounting for the bed, table, or the untold value that not having a bed in the way makes for a resident. It makes for a larger, more premium apartment without taking any additional space. This can increase occupancy and NOI.

Multifamily operators need to stay up with the new innovations and technologies available. Once, the dishwasher was considered a luxury for an apartment. Now, it’s expected. Space for an at-home office is becoming just as necessary. 

Multifamily Developers are Making Smaller Spaces Feel Bigger

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Multifamily Innovation

How to Get Smart Home Tech Without Breaking the Bank

by ArticleSponsored
multifamily innovation article

There’s a great misconception that providing smart tech for your multifamily assets can only be done with ease on new developments and lease-ups. 

Multifamily owners and operators think the learning curve is to high for staff, the startup and maintenance costs will be too high, smart tech only belongs in Class A multifamily properties, installation is a burden and you’re already understaffed, and there are too many providers without a single-source for cross-app integrations.

The list is long. The list is wrong.

Most multifamily owners and operators are thinking about the cost of utilizing smart tech rather than the cost of not utilizing smart tech.

Consider the cell phone in your pocket or on your desk right now. Remember how big and clunky they were in the 90s? Remember having to hit the buttons multiple times to scroll through the alphabet and numbers? They were a commodity. Something for rich people (remember when you had to pay per text?).

Look at where we are now. The sheer computing power of the modern mobile phone has grown exponentially year over year.

According to Pew Research Center, 97% of Americans own a cell phone now and that is because it has become a deflationary asset. As technology advances, cell phones become smarter, more powerful, and more affordable.

multifamily clients arize smart tech

Our research partner and client, Arize, states that by “2023, 53.9% of homes across the United States will feature smart tech (that’s 20% more smart homes than in 2019).”

Do you see that? That’s over half of all the homes in America that will be using smart tech.

Whether you like it or not, these smart devices are now a dealmaker or dealbreaker for your residents.

In fact, residents are expecting multifamily properties to have these features for security and cost-efficiency and will go as far as to rent an apartment based solely on those amenities.

Not only are residents choosing the smart apartment, they are staying longer and paying more for it.

According to Arize, “91% of renters believe home intelligence is a necessity, and 66% of current renters are willing to pay at least an extra $20/month for a smart device package.”

multifamily clients smart home

Certain smart technologies have the ability to perform climate control activities and avoid wasteful utility usage through water leak detection and other services.

This allows properties to distinguish where they are losing money on unnecessary expenses while giving them a tool to prevent this all together.

All of the sudden, those objections to smart tech in apartment communities become obsolete because of the necessity for this technology. 

Additionally, smart tech is a deflationary asset that is now benefiting stabilized properties. Most owners and operators think it is too expensive, but companies like Arize are coming up with innovative ways for operators to fund and get smart tech into existing apartments.

Arize believes that by providing a personalized experience along with unique services like competitive payment plans and customization, they are making it possible for all properties to have smart technology in their portfolio without breaking the bank.

Those multifamily owners and operators who choose to provide smart tech for their communities will scale faster, stay competitive, retain residents, and thrive through any impending real estate bubble pop.

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This report on Smart Apartment Tech Trends will explain the statistics behind smart home technology and how increasing demand has moved beyond solely Class A properties.

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Multifamily Innovation

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

by ArticleSponsored
multifamily innovation article

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.

apartment leasing ideas

“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.”

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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.

Tackling Missed Opportunities in Multifamily Leasing

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Multifamily Innovation

How Rent Delinquency is Affecting Profitability and Beyond

by ArticleSponsored
multifamily innovation article

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, multifamily 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 residents 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.

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“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 residents 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 resident.

By using services like CredHub, multifamily 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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Multifamily Innovation

Why Property Management Teams Need to Stop Depending on Emails

by ArticleSponsored
multifamily innovation article

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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Multifamily Innovation_Council_10

How Diane Batayeh and Village Green Make Innovation a Part of Doing Business

by Article

Village Green is committed to putting people into housing that meets their needs, desires, and budget. They are also dedicated to environmental and social responsibility.  Their use of innovation reflects this dedication. How does Village Green juggle Innovative business processes with social responsibility and customer service? I sought out Diane Batayeh, CEO of Village Green, to get her feedback on the subject.