1. Vacancy concessions occupancy

2. 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.

3. 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)
$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
$1,060
($187,391)
SCA
($42,630)
($45,000)
$2,370
$904
($323,160)
AJH
($92,513)
($85,581)
($6,932) 28
$954
($277,233)
BBP
($48,274)
($64,548)
$16,274 13
($210,478)
TT I
($31,668)
($35,360)
$3,692
$920
($126,585)
TT II
($24,846)
($32,045)
$7,199
$933
($117,485)
TT III
($4,373)
($4,050)
($323) 3
$924
($16,200)
AWN
($87,243)
($50,164)
($37,079)
$1,088
($175,954)
PAL
($81,181)
($67,313)
($13,868) 22
($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)
$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)

4. Vacancy Loss is a BIG NUMBER!!!
WHAT CAN YOU DO?
SET GOALS FOR MAINTENANCE AND LEASING TEAM WEEKLY
OCCUPANCY GOAL- 92% +
PLAN AHEAD- LOOK AT YOUR EXPOSURES COMING UP. WALK YOUR UNITS DAYS OUT.
PUSH MAKE READIES OUT TIMELY
ADD SOMETHING SPECIAL TO THE UNIT
UPGRADE WHEN NEEDED
BE READY TO SHOW IT!
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 FIRST
POST SPECIFIC ADS
HOT SHEET UNITS IN EVERY FLOORPLAN
EDUCATE YOUR LEASING TEAM

5. Concession Control

6. 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

7. 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….

8. 1st Qtr. Budgeted Concessions
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
$19,426
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

9. 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.

10. 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.

11. Marketing Your Concession Market 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 $ 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.

12. 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 month
Dry cleaning gift card
Dog grooming
Cooking classes
Hair cuts
Shoe shines
Movie tickets
Specialty ice cream
Apple Store
Oil change
Wal-Mart / Target / Kohl’s / Macy’s/Amazon
Pizza (always popular)

13. Make sure NOT to give it all away!
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 $ 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, , and call weekly.

14. 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.

15. Occupancy plan worksheet
Pull out the occupancy plan worksheet in your folders
Your 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

16. Questions?