appfolio webinar: building profitable lease renewal strategies

1 2015 © AppFolio, Inc..

Building Profitable Lease Renewal Strategies

@AppFolio @InmanNews @JacobGrant #AppFolioChat


AppFolio

• Property management and accounting• Online rent collection (free)• Prospect / guest card tracking• Vacancy Marketing• Website• Online applications & leases• Resident Screening• Mobile Inspections

…So You Run A More Successful Business

Complete Solution Includes:Web-Based Property Management Software


3 2015 © AppFolio, Inc.. @AppFolio @InmanNews @JacobGrant #AppFolioChat

Real estate industry professionals from around the world turn to Inman first for accurate, innovative and timely information about the business:

• Award-winning industry journalism• Cutting-edge technology coverage• In-depth educational opportunities• Forward-thinking events• The latest industry research

...Inman is the industry’s leading source of real estate information.


Introduction• My path to property management• Biggest influencers

o Institute for Real Estate Management (IREM)

o National Association of Residential Property Managers (NARPM)

o Strategic Coach (Entrepreneurial Coaching)

o Rent Like a Pro

Additional resources:http://jacobgrant.com/welcome-appfolio-attendees/

http://jacobgrant.com/welcome-appfolio-attendees/



Polling Question

Tell me a little about yourself• Part of a property management team.• Real estate owner• Division manager• Owner of property management company





Who Should Manage Lease Renewals?• Strong follow-through• Strong communication (writing and

verbal)• Good negotiator





Recognize Strengths without Judgement





Recognize Strengths without Judgement

• A good renewal program must have the right team members in the right places





Resources• Kolbe Right Fit: Select and Maximize Talent

http://kolbe.com• Podcast –

• 10x Talk with Joe Polish and Dan Sullivan Episode 61: How to Discover Your Natural Abilities with Kathy Kolbe

• Team Success Podcast – Shannon Waller


http://kolbe.com/




Polling Question 2

Our company currently uses a conative or other personality inventory questionnaire as part of our hiring and placement process.• Yes• No





Why Lease Renewals?• Reduce Turnover• Increase Occupancy• Allow for Lease Targeting• Help Plan Turnover





Reduce Turnover• Reduce vacancy

o Time to make readyo Time to occupy

• Reduce housekeeping, maintenance, and carpet cleaning expenses

• Reduce marketing expenses





Lease Targeting

• Target lease end dates to coordinate with fluctuations in prospective renters.

• In Idaho market most people are moving during summer months. Lease end dates should be targeted to align.

• Should be customized for your market.

• Mixed portfolios should be generally segmented.Additional resources:


June

January December




Lease Targeting Tool





Plan for Turnover

• Plan for staffing needs to maximize efficiency.

• Arrange other resources to compliment lease end dates.





Polling Question 3

Rate your lease renewal plan• Our lease renewal plan is epic!• We have a lease renewal plan in place, but needs

improvement• Our quasi renewal plan is irregular at best.• We do not currently have a renewal plan in place…

yet





Resources• Lease Targeting Tool


• Blog article• http://

www.letitrain.com/blog/pricing-science/seasonal-patterns-in-multifamily-housing/

• Web Resources• http://iloveleasing.com• http://marketsurveytools.com




http://www.letitrain.com/blog/pricing-science/seasonal-patterns-in-multifamily-housing/




http://iloveleasing.com/




How to Evaluate a Lease Renewal Program

3 Tools can help you measure the success of your renewal program

• Lease expiration rate• Renewal rate• Actual to market rent ratio





Lease Expiration Rate

Expired leases / Total leases = Expiration Rate

30 / 100 = 33%

Hint: Systems are the most effective way to minimize expiration rate.





Renewal Rate

Renewed Leases / Total leases = Renewal Rate

50 / 100 = 50%

Hint: There is a direct correlation between quick and effective maintenance services and renewal rate (mysatisfacts.com)





Actual to Market Rent Ratio

Actual Rent / Market Rent = Actual to Market Ratio

90 / 100 = 90%

Hint: Regularly re-assess rental rates. Lapsed leases is one of the most common





Thank YouAdditional Resources:

For access to lease renewal white paper and lease targeting spreadsheet tool

http://jacobgrant.com/lease-renewal/

Feel free to reach out to us on Twitter @JacobGrant

Internet Resources

http://satisfacts.com http://rentandretain.com/ http://multifamilyexecutive.com http://www.multifamilyinsiders.com/ http://propertymanagementinsider.com http://kingsleyinsights.com http://epmsonline.com/ https://www.nmhc.org http://jturnerresearch.com http://residentsurveys.com


http://jacobgrant.com/lease-renewal/

http://satisfacts.com/

http://rentandretain.com/

http://multifamilyexecutive.com/

http://www.multifamilyinsiders.com/

http://propertymanagementinsider.com/

http://propertymanagementinsider.com/

http://kingsleyinsights.com/

http://epmsonline.com/

https://www.nmhc.org/

http://jturnerresearch.com/

http://residentsurveys.com/




Questions or Comments?

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