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According to ApartmentGuide.com, over 35 million Americans move each year, many of which will make the transition during the summer months between April – August (Gregory, 2020). With over 43 million renters in the US, Managers and Owners alike need to be aware of the phenomenon referred to as Seasonality.

Generally defined, Seasonality is a characteristic of a time series in which data experiences regular and predictable changes that recur at specific points each calendar year. Apartment searches and moves follow this same seasonal trend where searches begin a gradual increase in January, and slowly ramp up to their peak in August. Moving to a new community begins to escalate in March before a similar peak in August (Brouwer, 2018).

Given this measurable trend that has been observed year-over-year, it is reasonable for Property Managers to assume an average occupancy loss of between 10-20% just in the peak months of June – August alone. On a 200-unit asset, this means anywhere from 20-40 units that need move-outs and inspections completed, scheduling of any maintenance or vendor labor inside of the unit to get it ready, all while simultaneously marketing the unit for rent to avoid any income loss!

The amount of work to receive, turn, and lease-out even a single unit can be a daunting task for onsite teams depending upon the condition of the unit, let alone when Managers get a few dozen units back at the same time. Prioritized checklists like the one provided by Apartments.com can help ease the turnover burden when managing multiple vacant units (Kenan, 2020):

1. Advertise ASAP – As soon as you receive notice from current residents, do not wait to advertise the upcoming vacant and try to get it pre-leased!
2. Schedule Vendors – Almost simultaneously with advertising the unit, key vendors should be scheduled quickly to allow ample time for all repairs to be completed.
3. Walkthrough – While you can already have vendors scheduled for routine and common items, you will not gain certainty of what exactly needs repaired in a unit until you can walk it with the current resident.
4. Change Locks – Following walkthrough, make sure that all keys have been returned and apartment is secure.
5. Final Cleaning – A thorough cleaning can be a time-consuming task, but cannot be forgotten to ensure the new tenant receives the unit in the best possible condition.

AFI Managers believe that the best way to soften the blow of tenant turnover is by ACHIEVING RENEWALS! The more DELIGHTED residents that continue to renew, the easier the Managers job becomes. However, when a move-out does occur, we encourage staff to NEVER WAIT. Managers should begin working renewals 90-120 days IN ADVANCE of lease expiration date to ensure work is scheduled promptly and that ample advertising time is allowed for upcoming vacancy, all while ALWAYS FIGHTING FOR THE RENEWAL!

References:

Brouwer, Chris. “How Does Seasonality Impact the Rental Market?” www.apartmentlist.com, ApartmentList.com, 5 Feb. 2018, www.apartmentlist.com/research/rental-market-seasonality.

Gregory, Lesly. “The Ultimate Moving Checklist + Printable Reminders.” www.apartmentguide.com, ApartmentGuide.com, 20 Mar. 2020, www.apartmentguide.com/blog/apartment-guide-moving-checklist/.

Kenan, Jamia. “Nine Step Apartment Turnover Checklist .” www.apartments.com, Apartments.com, 22 Oct. 2020, www.apartments.com/rental-manager/resources/article/nine-step-apartment-turnover-checklist.

Manolas, Kasia. “When is Peak Rental Season?” www.avail.com, Avail.com, 7 Aug. 2019, www.avail.co/education/articles/when-is-peak-rental-season.

“Number of renter occupied homes in the U.S. 1975-2019.” www.statista.com, Statista Research Departments, 5 Nov. 2020, www.statista.com/statistics/187577/housing-units-occupied-by-renter-in-the-us-since-1975/.

Do Not Wait – Renew Now!

30, 60, 90 days, when is the right time for Property Managers to begin thinking about lease renewals? AFI thinks the sooner, the better! As the beginning of March is right around the corner, surely it is too soon to be thinking about leases expiring in May or June, right? Think again!

While most renewals are signed 30 days prior to lease expiration, there can be a great benefit to both Property Managers, and Residents alike when it comes to getting that renewal taken care of early. According to ApartmentGuide.com, “Most people sign 12-month leases in the summer, meaning that they also end around that time, so this is when the highest number of new apartments are coming on the market. The downsides are you’ll have to act fast and face higher rent — there are a lot of other renters looking for the perfect place at the same time” (De La Cruz, 2020).

With peak season for marketing and move-outs being in the summer, what then are the benefits for Property Managers when it comes to early renewals (Thomas, 2020)?

1. Build Relationships with Tenants – Long-Term or happy residents will appreciate knowing they are being thought about “ahead” of time.
2. Save Time & Money – Why market a unit that is occupied? Residents should be encouraged to make decisions regarding renewal vs move-out as early as possible in order to allow for an ample amount of marketing efforts to take place.
3. Less CHAOS – New move-ins, unit turnover, community marketing, walk-ins, showings, summer maintenance issues, etc. These are just a few of the items Managers will be addressing over the busy summer months. Why add renewals to an already full plate?

As renewal rates have grown as high as 54% nationwide at the end of 2020, what then are the benefits for the Residents to sign early renewals (Ehmann, 2020).

1. Beat the Crowd – As stated previously, your lease is probably not the only one up for renewal in the given month. Get ahead of the game and allow yourself time to make a thoughtful decision by considering an early renewal.
2. Upgrades – Would you be more satisfied in your apartment with a fresh coat of paint or a new appliance? Making these requests in advance of your renewal can give your Property Manager time to carefully consider the accommodation and budget appropriately.
3. Moving Out & Next Steps – If you have decided to move out of your current community, do your Property Manager, and yourself a favor by communicating this information early so you can focus on what is next!

Whether you are an Owner, Operator, or Resident, AFI recommends reviewing your move-out dates and planning as far in advance as possible. Eliminate the stress, eliminate the confusion, eliminate the “what-ifs,” and act now!

References:

De La Cruz, Emmelie. “When is the Best Time to Rent an Apartment?” www.apartmentguide.com, 27 Mar. 2020, www.apartmentguide.com/blog/best-time-to-rent-an-apartment/

Ehmann, Chuck. “Apartment Lease Renewal Rates Continue to Climb.” www.realpage.com, RealPage, 1 Sept. 2020, www.realpage.com/analytics/apartment-lease-renewal-rates-continue-climb/

Thomas, Cat. “Should I Renew My Lease Agreement with my Tenant?” www.rentecdirect.com, 24 Aug. 2020, www.rentecdirect.com/blog/lease-renewal/

While the weather is remains quite chilly in Columbia, MO, we are forward-thinking regarding the coming Spring season and what that means for our Onsite Teams. Specifically, an increased focus on beginning quarterly, and completing annual maintenance items should be on everyone’s minds!

“While regular preventative maintenance will not eliminate all issues, it is a major money-saver in the long run. At the core of preventative maintenance, your goal is to catch minor issues before they grow into major, more expensive issues” (Deming, 2020). Why wait until tomorrow to correct today’s issue?

While comprehensive maintenance items are likely more effective on a staggered basis (allowing Managers to see the property in all seasons) the following should be included on a preventative maintenance schedule once per year at minimum:

1. Test Smoke and Carbon Monoxide Detectors – These safety devices should be installed in each apartment and tested at least once per year.
2. Pest Control – Can be outsourced to a local contractor or completed in-house with an easy-to-mix solution that is spread on a recurring basis.
3. Water Damage or Leaks – Water issues are some of the more common problems that can start very small but end up doing a ton of damage if not addressed properly.
4. Replace AC Filters – When filters become clogged and dirty, it can require the system to work harder potentially putting a big-ticket expense item at an increased risk of failure.
5. Check for Activity that Violates the Lease Agreement – Routine maintenance can also serve as an opportunity for Onsite Teams to be increasingly vigilant of potentially harmful tenant activity.

AFI Onsite Teams receive access to a robust online knowledge base that includes extensive documentation of current processes and SOPs. These processes include company-policies pertaining to more common items such as landscaping standards, as well as comprehensive checklists for quarterly, bi-annual, and annual maintenance items.

While no checklist is perfect, we can adhere to the best practices learned over years of experience and adjust when necessary. As best practices and SOPs will undoubtedly continue to change, the goal will always be to remain in front of serious issues and prevent high-cost renovations.

References:

Cifani, Sara. “10 Routine Preventative Maintenance and Repair Duties for Landlords.” www.dumpsters.com/blog, Dumpsters.com, 19 Dec. 2018, www.dumpsters.com/blog/landlord-repair-and-maintenance-checklist.

Deming, Micky. “The Landlord’s Preventative Maintenance Checklist.” www.avail.com, Avail, 6 Oct.2020, www.avail.co/education/guides/complete-guide-to-rental-property-maintenance/preventative-maintenance-checklist.

Leadership is commonly defined as the action of leading a group of people or an organization. However, commonly published leadership author, Warren G. Bennis, ventures that being a “Leader” is more complex than simply having “Followers.” “Leadership is having the capacity to translate vision into reality” (Forbes, 2013).

Who then, by Bennis’ definition, can qualify as a leader? Someone who simply barks orders and demands that his or will is implemented without a second thought? Or perhaps it is the individual that aligns their subordinates under the common goal or mission of that person/organization? Forbes.com identifies the following traits that almost all successful leaders possess in one capacity or another (Forbes, 2017):

1. Effective Communication – Leaders can clearly and succinctly explain to their teams everything from an organization’s long-term goals, to specific tasks or duties.
2. Accountability & Responsibility – An effective leader must take responsibility for their own mistakes/shortcomings and encourage team members to do the same while driving towards constant improvement.
3. Team Building – Successful leadership is dependent upon the people a leader can bring around them and align in the direction of a mutually beneficial goal.

AFI is responsible for the onsite operations of thousands of units across the country and effectively manages these assets through the implementation of a lean manufacturing model. Therefore, ensuring that the skills/resources necessary to effectively manage hundreds of individuals remotely are readily available is of the utmost importance. Often, one-on-one, in-person, and individualized instruction/guidance has no substitute.  

Some advantages of onsite, in-person mentorship are:

1. Outside Perspective – Without being physically present onsite at the asset from time to time, it can be easy to misunderstand or underestimate the magnitude of work onsite teams may be completing or issues they may be facing.
2. Task Importance – By spending a few days (or even a few weeks) to work with the management team at the property, we assure our onsite staff that their work is not just important, but critical to the continued realization of our company’s Mission, Prospering All Stakeholders.
3. SUPPORT – Sometimes onsite teams just need help. An extra set of hands a few days a month has proven to make a big difference to team morale and performance.

We believe the willingness to physically travel and be present where needed, when needed, is an obligation of AFI as the property operator and should not result in a significant addition to incurred expenses at the asset. To that end, AFI REFUSES to incur hotel charges and instead lodges onsite in a vacant unit whenever visiting (often sleeping on air mattresses). Everyone from our Interns, to company Leaders/Executives understands the importance of providing support and leadership to onsite teams whenever needed and minimizing costs all along the way.

References:

Kruse, Kevin. “What is Leadership?” Forbes, 9 Apr. 2013,                www.forbes.com/sites/kevinkruse/2013/04/09/what-is-leadership/#1b31f0395b90

Patel, Deep. “11 Powerful Traits of Successful Leaders.” Forbes, 22 Mar. 2017, www.forbes.com/sites/deeppatel/2017/03/22/11-powerful-traits-of-successful-leaders/#5e2b412a469f