what modern property management business looks like today

v

A LOOK AT THE

MODERN PROPERTY

MANAGEMENT BUSINESS

Business Is Changing.

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

Is Your Business Ready?

MILLENNIALS AT A GLANCE

BORN APPROXIMAT

ELY 1982–1995

MAKE UP 25%

OF THE POPULATIO

N

CHILDREN OF BABY BOOMERS

AND GENERATION X

THEY DON’T LIVE THE SAME WAY AS THEIR PARENTS.

TECH-SAVVY

PERSONALRIGHTS 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.

Millenials check their smartphones >43 times a dayAND 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!

SO, WHAT DOES THEMODERN 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

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% ARERENTERS.

MILLENNIALS MAKE UP 40% OF THE HOUSING MARKET.

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.

THEY USE SMARTPHONES TO PAYTHEIR 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.

MAKE SURE YOU’REMOBILE-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

THEY LOVE THEIRTECHNOLOGY.

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.

Owners and Investors

expect more

I want a modern

PM that will use

technology to…

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

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

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

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.

40 years

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.

Today

Social Media and Mobile Access is

creating an ecosystem that rewards

good manner, high touch, honesty

and integrity

THE POWER HAS BEEN

RETURNED!

+

600 Million added last year

6.8 Billion mobile subscribers

2.1 Billion mobile web users

Population 7.2

Billion

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%

How could I possibly learn all of these ??!

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.

Change is hard

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

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

… of mobile users purchase

online

… of Americans made a purchase

online

US mobile payments expected to reach

$90B by 2017

- Forrester Research

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.”

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

Opportunities

Great Time To Be In Property Management

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18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65+

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use

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Millennials!90% will rent vs buy

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

How are you differentiating yourself from the competition?

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

CONVENIENT PROPERTY SHOWINGS

AND APPROVALSWe 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 PAYMENTSYou get paid faster and residents love it.

ONLINE MAINTENANT REQUESTS &

24HR ANSWERINGHandling 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.

Thank You!