Online Leasing Has Arrived Jake Harrington, On-Site.com Kristy Simonette, Camden Property Trust Mark Van Tilburg, Archon Residential Management

What has the web changed? Social Professional Commerce “Online leasing” – where are we now?

Social

Professional

Commerce

“Online leasing” – where are we now?

Who’s renting? 78% have computers at home 66% have an internet connection from home 74% use a computer at work 80% of residents pay bills online 2nd highest renewal impact: online/automatic rent payment 56% prefer to communicate through email Multifamily Executive, March 2008

Do we get it? 76% say the Internet is the single most effective way to generate leads 18% cited Rental Publications 60% will focus their strategies on Internet Marketing 81% say investment in business systems automation is “top priority” 50%+ say that most companies will lease apartments online within two years 93% say portals are “critical” or “somewhat important” to improving resident services and operations Multifamily Executive, March 2008

What is “online leasing”? Sales channel Research, neighborhoods, pricing Transaction (point of lease) Payment, contract execution Retention Pay rent, reserve space, work orders

Sales channel

Research, neighborhoods, pricing

Transaction (point of lease)

Payment, contract execution

Retention

Pay rent, reserve space, work orders

What am I doing here? Rental Address™ online leasing & services Apply Now™ Ad Blast™ Resident services Rental Express™ #1 point-of-lease solution Smart screening Built-in form generation/archiving

Rental Address™ online leasing & services

Apply Now™

Ad Blast™

Resident services

Rental Express™ #1 point-of-lease solution

Smart screening

Built-in form generation/archiving

On-Site.com goals No IT support No consulting needed “ Plug and play” at the site level – “easy path” “ Implementation” should not be a four-letter word Negative recurring charge – wtf? Lease on your first day

No IT support

No consulting needed

“ Plug and play” at the site level – “easy path”

“ Implementation” should not be a four-letter word

Negative recurring charge – wtf?

Lease on your first day

Let’s go paperless!

Parallels in other industries McDonalds Do you want cheese on that? OpenTable Replaces pen-and-paper at the host stand “ Real time” availability + diner database + distribution/advertising (Zagat, Expedia…) Airlines, hotels – shop for a seat/bed

McDonalds

Do you want cheese on that?

OpenTable

Replaces pen-and-paper at the host stand

“ Real time” availability + diner database + distribution/advertising (Zagat, Expedia…)

Airlines, hotels – shop for a seat/bed

OpenTable.com “Real time” availability Easy interface for all parties Connects marketing with functionality Beyond a classified ad online “ If your website can’t do these sorts of things, what else can’t you do?” Hostess = Leasing agent Diner = renter

“Real time” availability

Easy interface for all parties

Connects marketing with functionality

Beyond a classified ad online

“ If your website can’t do these sorts of things, what else can’t you do?”

Hostess = Leasing agent

Diner = renter

Benefits of going paperless Save trees! But seriously… Liability of sensitive information Data loss/theft Redundancy Accessibility Convenience “ Wow”

Save trees!

But seriously…

Liability of sensitive information

Data loss/theft

Redundancy

Accessibility

Convenience

“ Wow”

One size doesn’t fit all Six ways to prorate! No single solution works for all applications Comfort level of users Leasing office layouts Renter demographics Community profiles Even “revenue maximizing” isn’t right for everyone Value vs. cash flow Total revenue vs. total profit

Six ways to prorate!

No single solution works for all applications

Comfort level of users

Leasing office layouts

Renter demographics

Community profiles

Even “revenue maximizing” isn’t right for everyone

Value vs. cash flow

Total revenue vs. total profit

Requirements of an e-form solution Legal, defensible Must handle every shred of paper Archived resident file must be complete Executed lease Legal notices SODA

Legal, defensible

Must handle every shred of paper

Archived resident file must be complete

Executed lease

Legal notices

SODA

1) ePad in the rental office Actual signature captured, so it emulates the offline process Signature pads are plug-and-play Easy to defend legitimacy

Actual signature captured, so it emulates the offline process

Signature pads are plug-and-play

Easy to defend legitimacy

2) eBarcode stores faxes Archives all forms Some forms will never be online (inspections) Fax in – No scanner required

Archives all forms

Some forms will never be online (inspections)

Fax in – No scanner required

3) eSign from anywhere online Off-site (email) or on-site (kiosk or monitor) No hardwar e Guarantors, rene wals AGREEMENT SIGNED – 20 PAGES Arizona Rental Agreement for Apt. #1155 for $1060.00 from 3/24/2008 to 3/23/2009 Because We Care Facts About Renter’s Insurance Prevent Moisture Problems in Your Home Garage, Parking, Storage & Vehicle Regulations Recreational Facility Regulations Crime Free Agreement Pet Agreement Community Policies Automatic Entry Gate Policies Fireplace Policies Move-in/Move-out Policies Resident Retention SIGNED BY Gerret Martin, Key ID ED8A569A On 03/22/2008 at 3:32PM EST from IP Address 75.41.23.182 PGP Key Version: GnuPG v1.4.6 (GNU/Linux) iD8DBQFH9YMZr9wnsAIaoqwRAoERAJ4oYlG8aet5Dv+NoeC20wUJ2YWIgACcD/+x YeUSNSO/otm/D3saYcMdohY= =xiA/

Off-site (email) or on-site (kiosk or monitor)

No hardwar e

Guarantors, rene wals

AGREEMENT SIGNED – 20 PAGES

Arizona Rental Agreement for Apt. #1155 for $1060.00 from 3/24/2008 to 3/23/2009

Because We Care

Facts About Renter’s Insurance

Prevent Moisture Problems in Your Home

Garage, Parking, Storage & Vehicle Regulations

Recreational Facility Regulations

Crime Free Agreement

Pet Agreement

Community Policies

Automatic Entry Gate Policies

Fireplace Policies

Move-in/Move-out Policies

Resident Retention

SIGNED BY

Gerret Martin, Key ID ED8A569A

On 03/22/2008 at 3:32PM EST from IP Address 75.41.23.182

PGP Key Version: GnuPG v1.4.6 (GNU/Linux) iD8DBQFH9YMZr9wnsAIaoqwRAoERAJ4oYlG8aet5Dv+NoeC20wUJ2YWIgACcD/+x YeUSNSO/otm/D3saYcMdohY= =xiA/

Reality check: “e-signatures” Nat’l Conference of Commissioners on Uniform State Laws (famous for UCC) drafted Uniform Electronic Transactions Act covering validity of electronic signing 46 states plus D.C. have since adopted the uniform law (no IL, GA, NY, WA) “ In a proceeding, evidence of a record or signature may not be excluded solely because it is in electronic form.” Identify , intent, control of document Consider: Judges have latitude

Nat’l Conference of Commissioners on Uniform State Laws (famous for UCC) drafted Uniform Electronic Transactions Act covering validity of electronic signing

46 states plus D.C. have since adopted the uniform law (no IL, GA, NY, WA)

“ In a proceeding, evidence of a record or signature may not be excluded solely because it is in electronic form.”

Identify , intent, control of document

Consider: Judges have latitude

Reality check: paperless office Line at the computer It’s hard to get more convenient than a file cabinet Many forms are offline Letters from residents Move-in/move-out inspections

Line at the computer

It’s hard to get more convenient than a file cabinet

Many forms are offline

Letters from residents

Move-in/move-out inspections

ONLINE LEASING HAS ARRIVED…

The Timeline Birth of camdenliving.com (February 2002) frames and flash PMS implementation (October 2004 – June 2005) YieldStar (Q4 2005) 2005 began talking about website revamp PMS plug-ins screening work orders and make-ready board online application online pricing resident portal payments platform … AT CAMDEN!

The Timeline

Birth of camdenliving.com (February 2002)

frames and flash

PMS implementation (October 2004 – June 2005)

YieldStar (Q4 2005)

2005 began talking about website revamp

PMS plug-ins

screening

work orders and make-ready board

online application

online pricing

resident portal

payments platform

Automation of processes – change management Physical offices Process efficiencies Hiring considerations New challenges with the digital age meshing with age old practices training security fair housing THE NEW WORLD FOR THE SITE STAFF

Automation of processes – change management

Physical offices

Process efficiencies

Hiring considerations

New challenges with the digital age meshing with age old practices

training

security

fair housing

EVOLUTION OF THE CUSTOMER EXPERIENCE HOW DO WE KNOW WHAT OUR CUSTOMERS WANT? We ask them! Prospect surveys Resident surveys “ Contact Us” via the website Feedback cards Organized focus groups

Prospect surveys

Resident surveys

“ Contact Us” via the website

Feedback cards

Organized focus groups

All business units have a stake Defined requirements Sent out RFP In process of selecting vendor New launch scheduled for Q4 WE NEED TO REDESIGN OUR WEB SITE! 2006 FINDINGS

All business units have a stake

Defined requirements

Sent out RFP

In process of selecting vendor

New launch scheduled for Q4

Website redesign cannot impede progress! Figuring out how to provide the right customer interaction even though our website redesign seems eons away… Our target market (Echo Boomers, Gen X and Gen Y) is demanding the ability to conduct all business online. AND – it must be seamless/multi-channel BUT… WHAT ABOUT OUR CUSTOMERS UNTIL Q4?

Website redesign cannot impede progress!

Figuring out how to provide the right customer interaction even though our website redesign seems eons away…

Our target market (Echo Boomers, Gen X and Gen Y) is demanding the ability to conduct all business online.

AND – it must be seamless/multi-channel

Online applications 12.5% 1% of this is sight unseen CURRENT ONLINE STATS Portal Payments ACH only 17.3%

Online applications

12.5%

1% of this is sight unseen

Portal Payments

ACH only

17.3%

Community leasing office Focus on sales and marketing Camden Contact Center (launching summer 2008) Capture the phone calls Better qualified prospects True Online Leasing (currently in pilot as of 3-26-08) Electronic Signature Authentication Document Management THE NEW MULTI-CHANNEL LEASING EXPERIENCE

Community leasing office

Focus on sales and marketing

Camden Contact Center (launching summer 2008)

Capture the phone calls

Better qualified prospects

True Online Leasing (currently in pilot as of 3-26-08)

Electronic Signature Authentication

Document Management

Customer convenience Process efficiency Data accuracy Secure Cost reduction THE BENEFITS

Customer convenience

Process efficiency

Data accuracy

Secure

Cost reduction

Employee challenges Must stay fresh and simple Intuitive for customers Learned behavior THE TRADE-OFFS

Employee challenges

Must stay fresh and simple

Intuitive for customers

Learned behavior

Integrating paper and electronic workflows Integration offers efficiency! INTEGRATION Accounting WhiteFence Bank Renters’ Insurance ILS Data Warehouse Revenue Management CMS PMS

Integrating paper and electronic workflows

Integration offers efficiency!

Consolidated weekly occupancy trend reporting (from 2 days to less than 1 hour) Reduced check processing time (from 3 minutes per check to 1 minute per check) Daily pricing decisions (8 hours per week now takes 10 minutes per day) No more manual changes for daily pricing updates to ILSs INTEGRATION OFFERS EFFICIENCY! WORKPLACE EFFICIENCIES

Consolidated weekly occupancy trend reporting

(from 2 days to less than 1 hour)

Reduced check processing time

(from 3 minutes per check to 1 minute per check)

Daily pricing decisions

(8 hours per week now takes 10 minutes per day)

No more manual changes for daily pricing updates to ILSs

INTEGRATION OFFERS EFFICIENCY!

KRISTY SIMONETTE Camden Property Trust Houston, Texas (713) 354-2625 [email_address] CONTACT INFORMATION

KRISTY SIMONETTE

Camden Property Trust

Houston, Texas

(713) 354-2625

[email_address]