Stewart Hsu

This is Part 2 of 2 of my take-aways from the Multifamily Brainstorming Conference I attended in November 2007. Looking back on the multifamily/apartment conferences I attended this past year, it was definitely my favorite. In this post, I’m going to get more tactical and highlight a handful of resources or ideas I found particularly useful. Keep in mind, each of us comes from different levels of experience, so what may appeal to you versus what appeals to me will vary. In case you missed Part 1, click here!

Normally I’m not big on pushing vendors, products and services, but if you’re relatively new to the multi-family industry like myself, there are valuable products and services you may simply not have heard about yet. Also, for those of you whom may not have the time to attend these types of conferences, my intent is to share some valuable resources and ideas here.

My disclaimer is that I have not personally used any of these yet, but these are definitely on my “take-action” list. Feel free to ping me a few months down the road to see how I’m doing with these. There were over 50 vendors present at the Multifamily Brainstorming conference, here are my top picks.

1) GraceHill. I suspect many of you who are reading this are somewhat tech-savvy, so this may not sound that earth-shattering, but their service does seem to be one of the best. They provide training for your property management staff over the internet. They have courses on fair housing, leasing, etc. — what your on-site staff needs to know and should know. They may be a touch expensive if you have less than 100 units, but keep these guys in mind. The key thought here is how to grow and invest in your employees and ultimately build a scalable, effective organization.

2) The Strategic Solution. They provide the morphine for a big pain. The pain I’m referring to is procedure manuals — a topic most entrepreneurs & investors would prefer not to think about. They create and update procedure manuals for Leasing & Marketing, Management & Operations, Maintenance and are working on an Human Resources manual as well. Most entrepreneurs I know are busy growing their businesses, and while they recognize the importance of documented procedures and systems, they don’t jump out of bed in the morning ready to work on them. The Strategic Solution folks are addressing a real need. Kendall Pretzer, the founder, has over 23 years experience in this industry. With that much experience and given the need, I have no doubt their solutions will continue to grow.

3) Property Bridge. Based in Oakland, CA, one of their sales reps remembered me from the National Apartment Association (NAA) conference (my first), that I had attended in Denver, CO June 2006! He approached me and asked how I was doing. Very kind of him. At that time I had no apartments in sight, but only the intention that I would be getting into this business. He shared one product they’ve recently launched that apparently is selling like hotcakes.

Before I explain their product, I have to share a couple thoughts first. If you run an apartment one of the cardinal rules is your property manager(s) should never, ever, never handle cash. Got it? There are stories a plenty of how some owners have been swindled. It’s a real risk and something every owner/operator should be aware of. As a quick sidebar — my philosophy is to treat your managers with respect, expect the best of them, take care of them… AND stay on top of your finances. You should have a sign in your office that says “No Cash Accepted.”

You don’t want personal checks either, as you may run into issues with those bouncing. So the compromise you’ll find is that a lot of properties out there deal in money orders. It’s a cash equivalent and typically made out to the name of your apartment community.

This is where Property Bridge may be of benefit. Since the tenants are going to a third party to get a money order, what if you could have them make a payment directly to a third party (i.e. Western Union), pay the same $3 fee, and that payment shows up in your bank account directly and your management software automatically? Well, that would be a beautiful thing in my mind. If you don’t have property management software, they can e-mail you the information in an excel file. The bonus to this service is that it saves your property manager some time on trips to the bank and accounting work, allowing them to focus on collections, managing the property and other higher value-add activities.

4) Agua Marketing. Manuel Delgado, founded this company in 2003, and they focus on marketing to the hispanic / latino market. In case you haven’t heard, the hispanic population is the #1 fastest growing “minority” demographic in the U.S. for at least the next 10 years coming. The implications of understanding this market and serving it well are huge. Have of all hispanics in the U.S. live in California or Texas. Anyone who’s in the multifamily industry needs to understand where these people are coming from, what’s important to them and how to communicate effectively with them.

I was fortunate to see Manuel’s presentation “From Mass Marketing to Mas Marketing.” I was able to obtain a copy of this presentation which I’m including below. The presentation was very well done. Note: the pdf file may not make as much sense without the Manuel walking you through it, but I know you can still gleam some valuable data and insights from it.

It’s unclear yet as to how I will work with these guys as of now, but I know it’s just a matter of time before I’ll want to consult with them.

5) Renters Insurance. This is a win-win (for your residents and you) and it’s less expensive than most people might think. Some apartment communities go as far as requiring proof of insurance before they hand over keys at move-in. A resident can get coverage for all the personal contents of the apartment, from as little as $125 up to $275/year. The pricing will vary upon location. This insurance premium covers $10,000 personal property and up to $50,000 liability. I personally don’t know when I’d go as far as requiring it as a condition for move-in, but I plan on at least having my on-site managers encourage it, and leaving some information handy in the leasing office.

6) Re-cycling. Nothing new really, but for some reason it wasn’t on my checklist of tasks to do upon take-over. I’m a big believer in recylcing, and as an owner/operator/investor you can make a significant positive difference to the environment by setting up recycling bins at your apartment community. Contact your waste/trash service provider and/or the city where your apartment is located to get your community setup.

I hope you gathered at least a couple ideas you can put into practice.

“You can always be more, do more and have more, because you can always learn more.”

-T. Harv Eker

Delgado: From Mass to Mas Marketing Presentation Part 1

Delgado: From Mass to Mas Marketing Presentation Part 2