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Vacancy concessions occupancy What is vacancy loss? Vacancy Vacancy concessions occupancy What is vacancy loss? Vacancy

Vacancy concessions occupancy What is vacancy loss? Vacancy - PowerPoint Presentation

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Vacancy concessions occupancy What is vacancy loss? Vacancy - PPT Presentation

Vacancy concessions occupancy What is vacancy loss Vacancy Loss   is the amount of money or percentage of net operating income that is estimated to not be realized due to nonpayment of rents and vacant units ID: 761909

concession 000 500 concessions 000 concession concessions 500 loss vacancy rent gift 1st 600 offering budgeted occupancy 2018 800

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Vacancyconcessionsoccupancy

What is vacancy loss?Vacancy Loss   is the amount of money or percentage of net operating income that is estimated to not be realized due to non-payment of rents and vacant units.

1st Quarter Vacancy Loss   1st Qtr. Vacancy Loss 1st Qtr. Budgeted Vacancy Loss Difference Avg Vacants per Month Avg Rent 2018 Projected Vacancy Loss 2018 Budgeted Vacancy Loss ABC I ($36,272) ($40,140) $3,868 15 $985   ($165,434) ABC II ($18,652) ($22,149) $3,497 8 $1,034   ($90,999) APP ($36,778) ($37,716) $938 12 $1,072   ($155,106) TAA ($51,389) ($51,109) ($280) 15 $981   ($184,484) ATC ($28,320) ($27,500) ($820) 10 $1,138   ($93,500) ASA ($58,595) ($59,293) $698 20 $1,174   ($191,973) BH/PP ($99,828) ($87,401) ($12,427) 30 $1,420   ($329,156) AOD ($53,715) ($54,519) $804 20 $1,060   ($187,391) SCA ($42,630) ($45,000) $2,370 20 $904   ($323,160) AJH ($92,513) ($85,581) ($6,932) 28 $954   ($277,233) BBP ($48,274) ($64,548) $16,274 13 $1,072   ($210,478) TT I ($31,668) ($35,360) $3,692 13 $920   ($126,585) TT II ($24,846) ($32,045) $7,199 12 $933   ($117,485) TT III ($4,373) ($4,050) ($323) 3 $924   ($16,200) AWN ($87,243) ($50,164) ($37,079) 15 $1,088   ($175,954) PAL ($81,181) ($67,313) ($13,868) 22 $933   ($237,243) GAP ($37,322) ($33,710) ($3,612) 14 $801   ($99,956) ABX ($40,386) ($44,154) $3,768 17 $745   ($129,064) AMH ($22,331) ($28,500) $6,169 18 $594   ($114,000) RTA ($92,300) ($41,000) ($51,300) 13 $984   ($128,000) MOP ($367,885) ($360,704) ($7,181) 32 $2,841   ($1,301,672) PHR ($146,423) ($164,000) $17,577 40 $1,147   ($505,000) Total ($1,502,924) ($1,435,956) ($104,368)       ($5,160,073) MOP II ($875,963) ($838,293) ($37,670) 95 $2,955   ($2,553,621) Grand Total ($2,378,887) ($2,274,249) ($142,038)       ($7,713,694)

WHAT CAN YOU DO?Vacancy Loss is a BIG NUMBER!!! KNOW YOUR PROPERTY AND WHAT SETS IT APART KNOW THE MARKET KEEP YOUR EYE ON DAYS VACANT DON’T LET TIME OR TYPE BUILD UP CHECK PRICING WITH PMT FOCUS ON THE OLDEST UNITS FIRSTPOST SPECIFIC ADSHOT SHEET UNITS IN EVERY FLOORPLANEDUCATE YOUR LEASING TEAM SET GOALS FOR MAINTENANCE AND LEASING TEAM WEEKLY OCCUPANCY GOAL- 92% + PLAN AHEAD- LOOK AT YOUR EXPOSURES COMING UP. WALK YOUR UNITS 30-60 DAYS OUT. PUSH MAKE READIES OUT TIMELY ADD SOMETHING SPECIAL TO THE UNIT UPGRADE WHEN NEEDED BE READY TO SHOW IT!

Concession Control

What is a concession? Concessions are defined as credits (dollars) given to offset rent, application fees, move in fees and/or any other revenue line item. They are generally given at the time of move-in to offset physical moving costs. Concessions are also used at the time of renewal as a way of offsetting the cost of a rent increase or the addition of an ancillary expense [Read: utility billing, renter’s insurance, etc.]  to a new lease term . Concessions are always entered into the resident ledger and never under scheduled billing

Types of concessions■ Up front/monthly concessions.  This reduces each month’s rent by the total concession, divided by 12. The upside may be an incentive for the resident to stay for the entire lease, rather than jumping ship after the short concession period. There are also downsides. ■  Incentive choices.  When offering, or blending in with concessions, some form of incentive , consider what form it might take. Other options may be attractive, such as upgrading countertops, adding backsplash, accent wall color or giving away flat-screen TVs, iPods and iPads, gift cards, etc….

1st Quarter Concession Use Prop 1st Qtr. Concessions 1st Qtr. Budgeted Concessions Difference 2018 Budgeted Concessions ABCI $20,020 $16,000 ($4,020) $84,000 ABCII $10,708 $7,350 ($3,358) $31,400 APP $15,423 $13,200 ($2,223) $52,800 TAA $29,098 $17,700 ($11,398) $70,800 ATC $10,974 $13,600 $2,626 $44,200 ASA $20,216 $24,000 $3,784 $78,000 BHPP $9,625 $17,500 $7,875 $42,000 AOD $35,352 $24,700 ($10,652) $119,800 SCA $50,356 $60,000 $9,644 $293,000 TTMI $25,934 $34,500 $8,566 $119,500 TTMIII $38,933 $21,000 ($17,933) $58,000 TTMII $20,646 $12,900 ($7,746) $54,600 AWN $18,860 $18,750 ($110) $64,000 JHA $5,169 $4,500 ($669) $15,750 BBP $27,913 $10,900 ($17,013) $60,600 PAL $31,947 $34,000 $2,053 $132,500 GAP $18,536 $12,000 ($6,536) $50,500 ABX $15,839 $19,500 $3,661 $82,000 MOP 1 $1,574 $21,000 $19,426 $84,000 MOP2 $16,430 $75,600 $59,170 $334,800 PHR $47,660 $32,000 ($15,660) $106,000 AMH $6,326 $4,650 ($1,676) $18,600 Total $477,538 $495,350 $17,812 $1,996,850

Do you know WHEN to use your concession? Make sure to use the concession if your property is in need of occupancy (less than 92%) ! We are giving you all the necessary tools so it is up to you to use it. If your property is not in need of it (92%-96%), Don’t use it! As the manager you can control the concessions weekly based upon leasing trends. Do not exceed what is on the pricing sheet without prior approval from PMT. If managed correctly you can bring in more cash at 93% by limiting your concessions than at 95% by giving away the full concession.

Who is offering Concessions? Ask yourself these questions before using your tool: Do you need a concession? What is the difference between market and value price? When are you offering a concession? Define Look and Lease? What are your comps offering? Is it effective ? Where do you see your concessions going in 2018? Remember to do your research.

Marketing Your ConcessionMarket your concession all ways possible & see what it brings. Example: assuming that rent is $795 with up to 1 month free. You may market the rent as $730. Apply it to app fee(s) and/or administration fees Give $350.oo Off first month to off set moving costs and pro-rate the $445.00 to lower the rent to best fit the new tenant(s) budget Buy a gift equal to the amount of the approved special Apply it to pet fee(s)Apply to a “Free” washer/dryer for a year The most important thing is to LISTEN to the traffic you have. This will help you determine on how to use your special.

Concession Ideas! Refresh paint or adding an accent wall Replacing older living room or dining room light fixtures Replacing standard light fixtures with ceiling fans Carpet Cleaning Replace older blinds Car wash gift card Restaurant Gift Cards Spa treatments Go phones / trac phones gift cards A gift to a charity selected by the Resident Free parking for one monthDry cleaning gift cardDog groomingCooking classesHair cutsShoe shinesMovie ticketsSpecialty ice cream Apple Store Oil change Wal-Mart / Target / Kohl’s / Macy’s/Amazon Pizza (always popular)

Apartment Locators Do you know what you are suppose to offer? Make sure NOT to give it all away ! For example: One bedrooms are up to $600.00 Off ONLY offer $300 when referred by an Apartment Locator Different factors determine the commission of an apartment locator. Make sure to know all details. We pay a certain percentage for escort vs just sending the client.When locators bring their clients you still need to control the tour!If your traffic is dependent on locators it is a MUST you visit, email, and call weekly.

Costly Mistakes Staff training  Offering too much Offering not enough Resident issues Improper paperwork It effects your budget! Let’s get rid of these mistakes.

Occupancy plan worksheetPull out the occupancy plan worksheet in your foldersYour folders will contain all the reports needed to complete this activity Managers and Maintenance supervisors should work together and submit one plan to pmt. Time: 20 mins

Questions?