Owner Case Study: Morgan Properties Peggy Hale AIM 2009


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AIM Conference 2009 Owner Case Study of Morgan Properties Best Practices incorporating new processes and technolgy to enhance lead tracking and build occupancy in multifamily real estate.

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Owner Case Study: Morgan Properties Peggy Hale AIM 2009

  1. 1. Owner Case Studies: Morgan Properties Peggy Hale Director of Sales, Marketing & Training Morgan Properties April 30, 2009
  2. 2. A Bit of History <ul><li>In 2007, Morgan Properties had 46 communities with approximately 15,000 units </li></ul><ul><li>Each site handled their own phone calls and emails </li></ul><ul><li>We used CallSource for recording quality and had a company answer goal of 85% during core hours </li></ul><ul><li>We used Vaultware on all ILS sites </li></ul><ul><li>We manually put all leads into Yardi </li></ul><ul><li>Intuition - We were not tracking 100% of our leads </li></ul>
  3. 3. A Bit More History <ul><li>September 2007, we acquired a portfolio of 86 communities and approximately 17,000 units </li></ul><ul><li>An overseas call center answered phone calls during business hours only with a goal of 92% answer ratio. We hovered around 88% </li></ul><ul><li>All call leads and automated email leads went into a third party contact management system </li></ul><ul><li>Vaultware was NOT used </li></ul><ul><li>There was no integration of the contact management system and Yardi so tracking activity between systems became a nightmare </li></ul><ul><li>We manually put all traffic and applications into Yardi </li></ul><ul><li>Intuition - We were not tracking 100% of our traffic as conversion ratios were staggeringly high . . . . </li></ul>
  4. 4. The Last Bit of History <ul><li>We had 2 portfolios with 2 separate processes </li></ul><ul><li>We were not OPEN 24 hours a day when customers needed us most </li></ul><ul><li>We were manually entering leads into Yardi and missing the boat </li></ul><ul><li>Tracking ad sources across portfolios was nearly impossible </li></ul><ul><li>Next step – Identify Best Practice in the Industry and make some needed changes! </li></ul>
  5. 5. 2008 – The Year of Best Practices <ul><li>Early in the year, we researched and met with Call Center Providers </li></ul><ul><li>In August & September we converted the 86 sites to Level One and simultaneously turned on Vaultware </li></ul><ul><li>We integrated the Level One Guest Card directly into Yardi so every lead was captured and tracked </li></ul><ul><li>We retrained our onsite staff on how to manage their leads internally and turned off the contact management system </li></ul><ul><li>The results . . . . </li></ul>
  6. 6. Early Results <ul><li>In Q4 2008, we learned that: </li></ul><ul><ul><li>We had increased our leads by 35%! </li></ul></ul><ul><ul><li>Having Level One respond to our calls and emails accounted for 25% of this increase </li></ul></ul><ul><ul><li>Level One handled all the Vaultware inquiries including applications that accounted for 10% of the new leads </li></ul></ul><ul><ul><li>We learned that 87% of all our leads were generated on the Internet </li></ul></ul><ul><ul><li>So we immediately reduced our 2009 print spend by over $350,000 </li></ul></ul>
  7. 7. Property Level Lead Reports!
  8. 8. Next Step <ul><li>In December 08 & January 09, we converted the original Morgan sites to Level One </li></ul><ul><li>We ramped down CallSource for leasing calls and retained CallSource for customer hotlines and collections </li></ul><ul><li>We retrained our onsite staff on how to manage their leads internally and turned off leads screen in Vaultware </li></ul><ul><li>By calculating the reduced phone and email administration, we reduced payroll by approximately $213,000 by consolidating leasing staff by 6.4 people </li></ul>
  9. 9. How did the Property Teams do? <ul><li>Our Leasing Teams now focus on 3 core competencies: </li></ul><ul><ul><li>Pro-actively Managing Lead Follow Up </li></ul></ul><ul><ul><li>Giving Fantastic Customer Tours </li></ul></ul><ul><ul><li>Providing Superior Customer Service </li></ul></ul>
  10. 10. What Internet Sites are Performing? Note: Forrent.com, Craigslist, Apartment finder and 4walls only used in specific regions.
  11. 11. Publishers still say – books push Internet Note: For Rent and Apartment Finder only used in specific regions. First Quarter Leads
  12. 12. How did we do in Q1 2009? <ul><li>Level One delivered 27,966 unique Guest Cards </li></ul><ul><li>They set 8,767 appointments - a ratio of 50% over the phone and 4% over email </li></ul><ul><li>We received 228 applications site unseen </li></ul><ul><li>59% of prospects called while 41% preferred email </li></ul><ul><li>83% of all prospects used the Internet </li></ul><ul><li>We improved occupancy by 2.41% company-wide </li></ul>
  13. 13. Vaultware – Above the National Average <ul><li>Availability Sessions: 138,788, Reservations: 3,909 </li></ul><ul><li>Average Availability Sessions per property: 1093 </li></ul><ul><li>Average Availability Sessions National Average: 933 </li></ul><ul><li>Average Reservations per property 31 </li></ul><ul><li>Average Reservations National Average 19 </li></ul><ul><li>Morgan stresses layering SPECIALS to attract renters - 128 sites average 700 specials </li></ul><ul><li>Another significant factor is the number or places online VaultWare is accessible by our prospects – approximately 15 sites </li></ul><ul><li>Lastly, culture makes a big difference. We promote internally and use as a closing tool </li></ul>
  14. 14. 65% of online reservations happen after hours <ul><li>Online Apartment Reservations Peak at 10:00 PM </li></ul><ul><li>It's the middle of the night and our customers want to rent </li></ul>
  15. 15. Now – Availability Alerts <ul><li>Future Renters waiting for Availability: 867 </li></ul><ul><li>Average per property: 7.1 </li></ul><ul><li>Alerts come right to the property – MORE LEADS! </li></ul>
  16. 16. Cost Savings <ul><li>Able to shift some print spending back to Internet: </li></ul><ul><ul><li>Testing rentwiki </li></ul></ul><ul><ul><li>Testing rentmineonline.com </li></ul></ul><ul><ul><li>Managing volume through Mynewplace </li></ul></ul><ul><ul><li>Adding SEO where occupancy challenged </li></ul></ul><ul><ul><li>Adding streaming video product </li></ul></ul><ul><ul><li>Professionally creating Facebook & Myspace property pages </li></ul></ul><ul><ul><li>Developing a higher value resident portal </li></ul></ul><ul><ul><li>Adding texting as routine communication </li></ul></ul>
  17. 17. What We Learned? <ul><li>Use the Best Technology for the Best Results </li></ul><ul><li>Continually Measure Performance </li></ul><ul><li>Adjust Based on Property, Market & Trends </li></ul><ul><li>Test, Test, Test New Methods </li></ul><ul><li>Train Your Teams to Effectively Use Processes </li></ul><ul><li>Property Managers still need to be “Marketeers” </li></ul><ul><li>Partner with Your Vendors </li></ul><ul><ul><li>“Share in each other’s knowledge and success!” </li></ul></ul>