The super-size mentality might be a trend, but industry experts warn that it should be considered in context. “The fact of the matter is that larger apartments are popular for an older demographic. You really have to know your customer,” says Bill McLaughlin, senior vice president of development for Alexandria, Va.-based AvalonBay Communities. What might work for an affluent renter in an urban property doesn’t always translate to the suburban market where, McLaughlin says, renters tend to be more price-conscious.
On-Demand Availability
Survey Says:57 percent said that an apartment’s availability “when I needed it” was the key factor in their decision, giving availability the No. 3 spot in a top 10 countdown of renters’ decision-making factors.
This finding should set off alarm bells for companies who have been slow to get on board with the kind of Web-based technology that’s required to deliver on this important survey finding. It points directly to inventory, rewarding the company that has up-to-the-minute stats on what apartments are available when. If a prospective renter can view the unit online, that’s even better.
“Availability is important, especially to this new generation of people who are coming into our renters’ market,” says Laurie Baker, regional vice president of Camden Property Trust in Houston. Her company recently rolled out its new Web-based system. “This is a group [that] is very comfortable with things like eBay, who might not feel the need to see an apartment [before renting it]. We want to get to the point where people could rent an apartment, sight unseen, all via the Internet. You have to be real careful with signing a lease electronically, but we’re working on that.”
Of course, not everyone is interested in renting an apartment without seeing it. Don’t forget: To show an apartment, it has to be ready.
“One thing that’s often missed is that if you don’t have an apartment turned, you can’t show it, so we focus on managing these apartments as aggressively as possible,” says Grimes. “Our stated goal is to turn everything within five days of moveout. If you can show someone a unit that they can rent, you’re more likely to close. Of course, the caveat to all this is that what we’d like most of all is to have nothing to show—to be absolutely full!”