Association News
Golf Outing
The First Annual CTAA Golf Outing was held at Gillette Ridge Golf Club on May 10. The afternoon started off with a golf clinic for experienced golfers to warm up and first-timers got some pointers. The winning foursome Michelle Allyson of Century Hills, Michelle DiNino, Jim Mas, and
Melchior Crescenti, all of CORT, are pictured left with Rachel Vincent, CTAA Events Chair.

NAA Housing Servey Just Released
New Survey Finds 65 Percent of Homeowners
Now Look Favorably Upon Renting Over Owning
Concerns over erratic housing market, rising foreclosures, and
uncertain mortgage rates reflect change in consumer attitudes, NAA finds
Arlington, VA, May 31, 2007 – A new survey commissioned by the National Apartment Association finds that an erratic housing market in the U.S., marked by uncertainty over mortgage rates and concerns about rising foreclosures, indicates that many homeowners are seeing renting an apartment in a more favorable light than they may have in the past.

The independent survey of more than 2,100 U.S. homeowners , conducted by leading market research firm Harris Interactive®, finds that 65 percent of homeowners believe that, given the current state of the real estate market, there are advantages to renting as opposed to owning.

“This survey reflects a notable contrast to what we traditionally see,” said National Apartment Association (NAA) President Douglas Culkin.  “In the past, people who own their homes have generally seen renting an apartment as a stepping stone to homeownership.  That phenomenon has by no means disappeared, but, across the nation, we’re seeing more and more consumers opting to rent, instead of own.”

Among the key advantages of renting versus owning, homeowners cited:

▪ No susceptibility to foreclosure (25 percent)
▪ Not being impacted by an unpredictable real estate resale market (23 percent)
▪ No fluctuating interest rates (23 percent)
 
Only 54 percent of homeowners cited the inability to build equity if renting as a major concern about apartment or condominium living.  Interestingly, a larger proportion of homeowners (62 percent) cited potential lack of privacy as a more serious consideration.

“There’s been a lot of discussion of the economic fallout of sub-prime mortgage lending that happened over the last few years,” said NAA’s Culkin.  “However, little attention has been paid to how the crisis has affected current homeowners’ views of homeownership as an investment choice.” 

“Make no mistake, these things are cyclical,” said Culkin.  “However, this survey reflects an interesting view of how homeowners value their home equity — and in our industry, we don’t see this changing anytime soon.”

Adding to the complexity of the issue is the fact that homeowners who have lost, or may soon lose, their homes to foreclosure are now facing the added difficulty of failing to qualify as creditworthy apartment renters. 

In an effort to help these “born-again renters,” NAA, in collaboration with the National Multi Housing Council, is “proactively engaged in finding ways to address the growing credit problem and assist consumers in getting into apartment homes.  There are a lot of people out there who need help,” said Culkin. “We want to do all we can to help them.”

About the survey
This survey was conducted online within the United States by Harris Interactive on behalf of the National Apartment Association between April 26 and April 30, 2007 among 2,118 adults (aged 18 and over) who own a house, townhouse, condominium, or cooperative apartment. Figures for region, age within gender, education, household income and race/ethnicity were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents’ propensity to be online. 
With a pure probability sample of 2,118, one could say with a ninety-five percent probability that the overall results would have a sampling error of +/- 3 percentage points. Sampling error for data based on sub-samples may be higher and would vary. However, that does not take other sources of error into account. This online survey is not based on a probability sample and therefore no theoretical sampling error can be calculated.

About Harris Interactive
Harris Interactive is the 12th largest and fastest-growing market research firm in the world. The company provides innovative research, insights and strategic advice to help its clients make more confident decisions which lead to measurable and enduring improvements in performance. Harris Interactive is widely known for The Harris Poll, one of the longest running, independent opinion polls and for pioneering online market research methods. The company has built what it believes to be the world’s largest panel of survey respondents, the Harris Poll Online. Harris Interactive serves clients worldwide through its United States, Europe and Asia offices, its wholly-owned subsidiaries Novatris in France and MediaTransfer AG in Germany, and through a global network of independent market research firms. More information about Harris Interactive may be obtained at www.harrisinteractive.com.

About the National Apartment Association
One-third of the homes in America are apartment homes and many of these homes are represented by the National Apartment Association, America's leading advocate for quality rental housing which represents more than 6.1 million apartment homes throughout the United States and Canada.  The organization's mission is to serve the interests of multifamily housing owners, managers, developers and suppliers and maintain a high level of professionalism in the multifamily housing industry.  For additional information please visit www.naahq.org.
  For the purposes of this survey, “homeowners” were defined as U.S. adults ages 18+ who own a house, townhouse, condominium, or cooperative apartment (n= 2,118).

Upcoming Events

Sexual Harassment Seminar
Presented by Allison Rowett of Tarragon Management’s Human Resources Department. 
Wednesday, June 20th, 2007, 10:00 am – 12:00 pm
Four Points Sheraton, 275 Research Pkwy., Meriden, CT 06450
Fee: $20 CTAA members, $30 non-members
NAAEI Designation CEC Credits: 2
Who Should Attend?
Owners, Managers, Leasing Professionals, Maintenance Professionals, Vendors, along with anyone interested in obtaining information on sexual harassment as it relates to the work environment.  Any person in a supervisory position is required per CT state law to attend a sexual harassment seminar once a year.
Register on-line

Deadline Extension: CTAA Membership Directory advertising space submission deadline is moved to June 15, 2007. Hurry, get your ad in before the directory closes for the year.

2007 Fifth Annual CTAA Trade Show sponsorship and booth registration is now open.
Friday, November 16, 2007, Mohegan Sun Resort and Casino, Uncasville, CT
Sponsorships are available. Main sponsors get first pick on booth position.
Register now.

2007 Nutmeg Award applications are now available
The CTAA wants to recognize the hard work and dedication to quality housing shown by the Connecticut Multi-Family Housing Industry, by hosting the Fifth Annual Nutmeg Awards. Details and application are available on the web site. Deadline for submission is July 2, 2007!
Click here to submit your community.

New Members

Apartment Management Members

Deer Valley Townhouses
Eriz A. Santini, Property Manager
155 Windermere Ave #9001
Ellington, CT 06029
Phone: 860- 875—7200
Fax: 860-875-7300
ESantini@DeerValleyTownhouses.com
www.DeerValleyTownhouses.com

Santini Villa Apartments
Lois Santini, Office Manager
1125 Hartford Turnpike
Vernon, CT 06066
Phone: 860-872-7384
Fax: 860-872-7388
LSantini@SantiniLiving.com
www.SantiniVillaApartments.com

Associate Members

Enviroshield, Inc
Dick Louis
Vice President
PO Box 1296
Stratford, CT 06615
Phone: 800-394-2268
Fax: 203-378-8736
RDL@Enviroshield.com
www.Enviroshield.com

P.U.T.T.R. "Pick Up Tenants' Trash Regularly"
Jim Rodriguez
576 Long Hill road
Middletown, CT 06457
Phone: 203-213-7545
Fax: 860-632-8959
Jilrod54@sbcglobal.net

Member News – Promotions, Changes, New Hires …
Fairfield Residential announces the following personnel changes:
Christine Robinson was promoted to Manager at The Hawthorne at Gillette Ridge.
New Hires:
Sheila Hayes, Leasing Consultant, and Patricia Boudreau, Assistant Manager at Middletown Ridge.
Edgar Szabo, Assistant Manager at The Hawthorne at Gillette Ridge.

Nicky Harvey has joined the Tarragon Team and is now the new Property Manager at Forest Park Apartments in Rocky Hill.  

Profiles
Every month, the CTAA eNewsletter will profile two members of the Board of Directors for a glimpse behind the scenes of the workings of the CTAA.

Mindy Semmler
CTAA Secretary
Manager, The Club Bigelow
Northland Investments

How did you enter the multifamily industry?
I was actually working at Curves for Women and Diane Yensen came into workout and told me that I should be a leasing agent. She gave me the number to the Pavilions in Manchester and told me to apply. I did and 5 years later I am still with Northland, I started as a leasing agent and now I manage the only Health Club that Northlands owns that is not only for the Tenants but outside members.
 
What led to your current position?
I have always been interested in fitness, and working with people is ideal for me
 
What made you want to volunteer with CTAA?
I wanted to stay with the apartment industry after taking over The Club, and I am really interested in everything the CTAA has to offer.  
 
What do you hope to accomplish with your service to CTAA? or Do you have a vision of what you would like CTAA to become?
I would like to see the CTAA gain a lot more attention, I think what we are doing and accomplishing are wonderful and to be a part of it is a lot of fun.

Chris Crampton
CTAA Director of Southern Connecticut
Property Manager, Hillcroft at Danbury
Fairfield Residential

How did you enter the multifamily industry?
After about 4 years of working with the State of CT within college residential services I decided to make a change and try something a little different.  I joined AvalonBay as a Leasing Consultant in May of 2004 and worked at 2 great properties while with AvalonBay, one being the beautiful Avalon Orange during its lease up.
 
What led to your current position?
A great friend of mine gave my name to the Regional who oversees the CT properties for Fairfield Residential.  They knew that they would be buying a property in Danbury and were looking for a new manager to hire.  I was interviewed and was offered the position of Property Manager for Hillcroft at Danbury, which so far has been a great experience.
 
What made you want to volunteer with CTAA?
My Regional Ginger Gibson and fellow Manager Jennifer Harrison encouraged me to join and help represent the properties in Southern CT and also Fairfield Residential.  I also have always had a positive view of the CTAA and the Board of Directors from being with AvalonBay and attending various CTAA events in the past.
 
What do you hope to accomplish with your service to CTAA? or Do you have a vision of what you would like CTAA to become?
I hope to bring to the table some fresh ideas for membership drives for the properties in Southern CT and I would like to help increase the membership with more vendors and properties.  Help spread the word to everyone why it is so positive to be a member of the CTAA.
 
Articles and information you can use….
What to do instead of FREE RENT - The Road Less Traveled
By National Speaker and Author Toni Blake

Play games, spin a wheel, and give away a car - I'm not against wooing, cooing and pursuing every customer in the market. I just don't believe in messing with the rent check. In this article I am going to do my best to help you stay away from FREE RENT concessions!
First let's ask the question WHY do communities offer free rent? It seems everyone knows it's a bad idea - so what makes them do it? My answer is - it's easy! It does not take a plan, an idea, it doesn't require creativity, you don't have to explain it and owners seem to let you. A five-minute phone call for approval and you have (what you think) is the answer. Remember just because people do it, does not make it the right answer. There are plenty of bad ideas that get copied.
Just look around. Have you ever seen an outside amenity sign that says "POOL"? Almost every apartment in America has a pool! What do they think is going to happen, someone driving 40 miles an hour is going to slam on the brakes and pull in because there is a pool? Not a great idea, but they are easy, ready-made and you do not have to think about it. Today, Great American Business Products has hired a team of marketing experts (including me) to plan and create dynamic amenities signs that will get you noticed!

If you are willing to have a plan, an idea and be creative - you do not have to give away rent. The first thing you are going to have to commit to, to avoid free rent is thinking! You are going to have to stop, think, research, create and implement a plan that will keep the money in YOUR bank!

The Market Doesn't Decide - You Do
I asked my colleague Jennifer Nevitt, the renowned guru on pricing in the multifamily industry to share her thoughts and ideas. Here's what she had to say:
Jennifer: Toni, our current thinking is sad. Actually hearing someone tell me "it's the market" makes me cringe. In a conversation with a property manager last week, we discussed the market's condition of 83% occupancy. Her perception was that the 2 month's FREE rent would help her gain ground against her competitors. The reality is if the market is 83% occupied; 2 month's FREE rent isn't going to fix the insufficient demand within the market place. The question should be -- Who even started such an irresponsible practice? They obviously did not understand basic real estate investment theory clearly enough to know how to respond to a drop in the market. The customer did not start it - but they will love it. This is not successful thinking, do not let your competitors get you on this train of thought, it is on the wrong economic track. It is dangerous to match the lowest concession - you give a week free as my competitor, I will match you. If you give two weeks free, I will match you again. If you give two months free, I will match you again.

We are only hurting ourselves and believe it or not, we are still renting the same number of apartments based on available market share just at much lower rents. The continued consequence of these irresponsible actions is an owner unable to make a mortgage payment by fourth quarter.
Toni: Your entire existence - in real estate - is to increase the value of the asset. Everything you do from flags to flowers is to build image and increase value. In one misguided move, you can devaluate your entire effort. When you lower the rent, it does not just change your bank balance, it changes the perceived value of your product in the market. My reaction to a soft market is not to decrease my value - it is to increase it!! I need the customer to see me as the best choice not the cheapest. One of my favorite new closing lines is: Choose your next home because of what you get…not because of what you get free! I like to up sell. Increase value, increase passion, increase flowers, flags and cookies, add living models to my tour, and be the irresistible choice in the market. I will play games, conduct contests, cook food, have fun and add lots of LOVE to my property.

I would look at what is right and not what is wrong. I would sing my praises and repeat my worries. I would concentrate on being the best choice and not the cheapest deal! You don't want me as your competition because I will kill you with my kindness - I will keep my market rents, my residents and close the highest percentage of the traffic. When the market gets tough, the tough get marketing. Have you been watching the Olympics? Picabo Street was in 16th place after her downhill race. Do you know what the time difference between Picabo and the Gold Medal winner was? One and five tenths (1.05) seconds. Being the better choice is about 500 one-second decisions, not one decision to give free rent.
I will have more colorful flowers, cleaner grounds, brighter painted curbs, more colorful door mats, fresh and not fake flowers, a selection of cookies not one, a better smelling, looking, feeling apartment. I will have more area information, better move in gifts and a friendlier staff. I will improve 100 % of the things I do by 1% across the board and win by paying attention. I will win with a simple and yet very clever value marketing plan.

Games
You can play who wants to be a millionaire - have a balloon with lottery tickets worth millions inside. Everyone who looks at an apartment gets a balloon and the chance to win millions. Let them have one chance for every apartment they look at. I love games. Spin the wheel for incentives - vacuum cleaners, special blenders for amazing frozen drinks. People love "custom features". Give them a chance to decorate with a free accent wall painted from a section predetermined by your company. Add chair rail in the dinning room to match their furniture, oak, maple, brass or marble. These simple chair rails can be measured and pre-cut to fit your walls and are mounted with small tacks ($15.00). Add color and style with a great selection of (removable) wallpaper boarders ($17.50 per room). People love the game of chance. Let them take a chance and spin a wheel with $300.00 - $800.00 to spend in the design center. This money is re-invested back into your real estate asset. It increases the value and keeps your bank account and your new resident happy

Contest
Before you give in to temptation to give away free rent, try a contest with an exciting (non-rent) giveaway instead! Before you begin, remember that everyone who visits your community must be allowed to enter a contest in order to make it legal. Choose a giveaway that people in your market would love! For example, give away a home office including computer, printer, and software package or a mountain bike if you are in a health-conscious area. What about a recreational vehicle if you are near a lake or other water sports area? You can offer vacation packages for very little, and you can offer them to everyone! Being the most exciting selection of apartment homes in the market is not about free rent.

Prepare Your Strategy
Make a decision about how you are going to compete and then create a complete plan. You cannot win a war without a battle plan and your frontline troops are the key to your success. They need the right training, equipment and motivation to get the job done.
Welcome to my world - where it's all about your new home and not the $$$$. Value selling may not be new, but it is your best option. People want what is best for them, and they can be persuaded - you need to get your team into the persuasion game. Here are some tools for increasing your success. Be visual - give your staff new exciting visual aids. I have a "Self-Closing Apartment" program that includes 48 invitations to rent! Each invitation is in the form of a post-it sized card that includes a simple graphic and a leasing message. Imagine that every apartment your team shows has been designed to incorporate 48 statements of persuasion designed to get people to rent NOW!!! They create closing opportunities for your staff and if the customer can read they will be invited to rent 48 distinct times!!!!!! Sound excessive to you? Hey, you can't just act normally in a market where FREE RENT is being given away! Here are a few examples of the messages on my cards:
Choose your next home because of what you get -
Not what you get FREE!
In a world so big - I can't believe we found the perfect match
YOU + this apartment = HOME!
TRY our Patience - WE believe in high maintenance
You can't SEE our service . . . it's the best reason for living here!
We are going to keep asking until you say yes… SAY YES
( there are three more cards that read simply: SAY YES!
There are 43 more statements of persuasion and invitations to rent where that came from. (Remember, when I was in leasing, I became known for locking people in the walk in and asking them to put a check under the door to get out. I have no problem convincing someone that my community is the best place to live.)

Build Confidence In The Property
Create a poster in your World that lists, in large letters, 25 reasons why a prospect should become a Resident of "Value World Apartments". Reinforce the message to your team with spot checks where regionals call or personally ask a team member to state five of the reasons to rent, and if they can, they give them $5 on the spot.

Offer "storewide discounts". Most businesses place only a few products on sale at a time. Very seldom do you have a discount across the board. Each apartment is a different address, a separate piece of real estate. You need to think of each apartment in your inventory as an individual home. Like on a street in a neighborhood, each house does not sell for the exact same amount. I like to use a "secret envelope". Each apartment has a sealed envelope filled in by the "owner" and the property manager. This amount is a personal matter between the property and the person who rents the apartment. The envelopes are kept in the manager's office and can be retrieved with a completed application. They do not have to take the offer, but the information is private. Who says we can't require something of our customers? Are we so afraid they will run out of the door screaming if we make rules? I think not! The secret envelope is working beautifully with many of my clients. To add interest, the leasing agent can give hints as to the amount of the offer -

Here's what Jennifer Nevitt had to say about individual unit values:
Jennifer: When looking at your available inventory, categorize it by floor, by unit type. Rule: When total availability is less than 5% by floor, by unit type. Don't give FREE rent. Supply is low and demand appears to be sufficient. Take a specific address that has the greatest days vacant; offer a limited offer on that exact address. The phrase "Offer Expires" moves people to buy. Do your concessions currently have an expiration date and are they address specific?
Also, look for other income increases. In a recent pricing workshop we offered to owners, we were able to find a Gross Potential Increase of $200,000 representing only two (2) assets and 798 units. Look for income increases in fees, garage and carport pricing based on availability and lease renewals in high demand apartment types. All is not doom and gloom.
What is Fair market value - how do you get that - establish rents? I like to work with per square foot.

Create Your Own Lease Up Team!
Take your best leasing people and let them travel from Property to Property as your TOP GUNS! I'd rather see you inspire your on-site team with a pool comprised of a percentage of the first month's rent (that you collected instead of giving it away) per apartment divided by the appropriate percentages for each team member. Scale down starting with the highest percentage to the manager, then renting agent, then maintenance, then assistants, then other leasing, then housekeeping and grounds. Get everybody on board and give the incentive to your staff. Rather than giving away the money, see if awarding it to your staff inspires them enough to rent without a special. You will be amazed how quickly they will enter your new world! They won't complain about a market condition that lines their pockets!! This approach keeps your people motivated and your residents in a world where their apartment has value.
What Else Can You Give?
Cover some moving expenses
Pay for the Van
Groceries
Trips (cost you less)
Utility Deposits - A check to cover the costs
Upgrades (that remain with the apartment home)
Selection from a gift table - i.e., vacuum cleaners, fancy appliances ($75.00)

The Difference Between A Negotiation Tool And A "Giveaway"
When you print the words FREE RENT in your ad, it is a give-away. The consumer knows it is free, and therefore you have no ability to establish any kind of requirement or negotiations in return for that gift - you gave it away, and in writing no less - like a special secret, with no mystery or suspense. No need to call and find out the special - you've given it away in your very own advertising. This is a serious mistake! If you have anything printed with your special - take it off!

The special or incentive you give should be changed per unit type, view and other important specifics and not across the board. However, most important it must have conditions. You must have requirements of them, fill out an application, meet the credit criteria and leave a deposit. When you give something with no requirement in return, it has no value.

Use your advertising space to talk about why your property is the best choice - have them call to discuss details and specifics about finding the right apartment for each customer. If you must give incentives in your printed advertising, offer deposit insurance, complimentary applications and other services that will encourage people to make you a top choice. Some people not only print the free rent in their ad, they put a banner on the building. Price is not the only consideration for renting. I would recommend you feature other reasons for stopping. Great Value! That works for me. I once saw a banner that said "$100 Moves You In" I wondered how long the homeless guy on the corner needed to come up with that. Winning in a concession market is not about lowering your rent and then your standards. It is about raising your work ethic, increasing your passion and persuading your traffic that nowhere else in the world is a better place to live than right here!

Think About It
People want a good deal -so give them one! Do not feel obligated to keep up the "FREE RENT" concessions. It is a dangerous game and the industry loses every time it's played. Just because one person jumps off an economic cliff does not mean you have to follow. Do not let someone else set the rules or the pace for you. IT IS AN ILLUSION! You need to create your own world - one separate from "the others" in which different standards of behavior are practiced. Create a world with a different belief system - a new way of thinking - a thinking based on value. Do not buy into the idea of FREE RENT - it will cost you.

Toni Blake began her career in 1978 as a leasing agent and worked her way to a nationally recognized Speaker & Author with a drive for excellence, innovation, and high performance. Toni was selected by the National Apartment Association as one of the industry's "Marketing Gurus" and is recognized for her industry research and innovative concepts in customer service, sales, and marketing. Toni is greatly loved by many in this industry. She received the 2001 Sales & Marketing Magic's "People's Choice" Award for Educational Excellence and Imagination and Innovation. Toni has appeared at many of the country's popular comedy clubs, including Denver's famed Comedy Works and Seattle's Comedy Underground. Toni's industry comedy makes her a favorite Keynote Speaker and MC for dinner meetings and awards programs around the country.
For more information regarding her programs, call her national marketing director - Barbara Holbrook toll free at 866 889-6600.