How does your older property compete when a new construction project opens up nearby?  Both 2023 and 2024 are expected to see a record number of new development projects in lease-up mode.  So, how do you contend against all this ‘new’ with your existing property?  Even worse, perhaps you’ve let up a bit on site-level maintenance or capital improvements over the past few years and now you’re experiencing move-outs and a decline in occupancy.

Don’t worry.  All is not lost.  It’s time to put your game plan together and get to work!

Do Your Homework

The first thing you need to know is what your competition is offering.  Do you know what your new competitors are offering in terms of:

• Unit Types/Sizes
• Policies/Pets
• In-Unit Amenities
• Community Amenities
• Days/Hours of Operation

Go see them.  Or, at least, have them shopped.  You will need to compare and contrast yourself with them.

What do they have that you do not?  We know new properties are like new high-end cars – packed with all the latest upgrades and amenities.  And, just like a new car comes equipped with advanced technology and features, new apartment properties come with fitness centers, pools, and other deluxe amenities.  But are these items truly deal breakers?  Not everyone wants, or can afford, to pay top dollar for things they aren’t really going to use.

If what they have is better, define how.  What can you do to improve what you have?  How can you up your game?  For example, if they have a new fitness center and you have a tired, old gym, think about what you could do to improve yours.  Add better lighting?  Add a mini-fridge stocked with water?  Add music or television screens?  Upgrade some of your equipment?  You won’t be able to compete head-on with the new communities, but let them inspire you to up your game.  Remember, your rents are hundreds of dollars less than theirs, and not everyone can pay for all that glitz.

Think about what you have that they do not?  And are you selling it effectively?  Maybe you could offer a community garden.  Does your building have charm and character?  Perhaps your property is in a superior location.  Likely, your apartments are larger.  Can you create a home office nook or more closet space?  Maybe add a closet organizing system?  We know that newer properties tend to have smaller units due to the cost of new construction.  How can you take advantage of that fact?

Acknowledge That People Like ‘New’

You can’t go head-to-head with a new property.  New is their strength.  But having a leasing office or apartments that look like they were last updated in 1986 is not going to cut it either.  You will need to do some targeted upgrades to your property.

If you have a leasing office, does it feel ‘high end’ for the price point your property is at?  People like ‘new’.  But people also like ‘quality’.  Your price point is lower than the new property.  You are selling value.  Do people sense ‘value’ when they walk onto your site?

Curb appeal is still critically important.  Have white flowers just outside your leasing office.  Offer higher quality refreshments.  Have coffee, tea, and water available. Use a scent that feels ‘clean’.  This will create a warm and welcoming environment for potential residents.

Incorporate technology into your leasing office.  Pay attention to the décor.  Use high-quality materials and comfortable, stylish furnishings.  Add good lighting.  Showcase the amenities of your property by displaying pictures or with other collateral material.  Your goal is to have the property do some of the selling for you.

Update Your Website and Digital Curb Appeal

You want to make your online presence feel up-to-date.  Look at the websites of your competition.  Keep your website design modern.  A clean, easy-to-navigate website can make a property look more appealing and feel newer.  Highlight any updates or renovations.

High-quality photos and even videos can showcase an older property in a new light.  You want to capture the unique features of your property, and video is one way to do this.

Share positive reviews.  Most apartment shoppers trust tenant reviews more than anything you can say about your property.  Maybe you can add video clips of resident testimonials to your site.  These are very powerful.

Improve Your Asset

Let’s start with the basics.  You want to update the look and feel of your apartments.  This might include updated appliances, lighting, flooring, and fresh paint.  You don’t need to spend a fortune, but you do need to spend something.

Accentuate your property’s charm and character.  If you have a bland box, maybe there’s not too much you can do on this front.  But, if you have an older property with unique features, play these up in your renovations.

Create or update unique amenities.  Maybe you can add a roof deck because it would have a great view.  Maybe you can update your courtyard with an outdoor kitchen and grilling area.  Adding a fire pit and quality outdoor furniture can help make your building more ‘up to date’.  Common area amenities will usually get you more ‘bang for your renovation buck’ than individual unit upgrades.

But don’t ignore the apartments.  This is where people will be spending most of their time.  Clean, energy-efficient appliances, fixtures, and lighting can make a big difference in a property’s appeal.  Can you create something unique in the unit, like a great closet or home office nook?  I’ve covered some of the most popular upgrades in other articles, so I won’t spend much time on that here.

Focus on technology and convenience.  With many people working from home, having good high-speed internet is a must.  Smart home features like smart locks and smart thermostats are also becoming increasingly popular.

Focus on Customer Service and Resident Retention

If you don’t have people continually moving out, you’ll have less need to fill vacancies.

Put a renewed focus on resident events and services.  Little things like a free breakfast on a Saturday or free popsicles by the pool help build goodwill and community.

Your customer service must be top-notch.  There’s no excuse for broken, unpainted, or dirty anything.  Walk your property daily to ensure it looks fresh.  Put an extra focus on the resident move-in and around 60 days of occupancy (when the ‘honeymoon period’ starts to wane).  This is critical to getting tenancies started correctly and upping the odds of a resident staying beyond their initial lease term.

Highlight your exceptional customer service or community-building initiatives during your tour.  While a new property is more about the ‘luxurious, new amenities’, you are about building relationships, holding community events and activities, responding promptly to maintenance requests, and creating an environment where people want to live.

The ability to pay rent online and request maintenance 24/7 are key features you should offer if you don’t already.  Review your pet policies and other policies.  Being pet friendly is also an amenity, not every building offers and can set you apart.  Maybe waive pet fees to gain occupancy.

You and Your Staff are the Difference Makers

The attitude and skills of you and your staff can make all the difference.  Most new properties are only focused on their long list of ‘new things’.  They are not focused on the customer like you are.  Use this to your advantage.

• Hire only the best people
• Write down your marketing plan and train them on what to say and how to say it.
• Focus on the customer. Show your strengths.  Show your value.
• And don’t forget to sell the downside of new construction.

Remember it can’t be all about the product (new will win on that front every time).  With new construction, they are paying top dollar for what they get, but is it really worth it?  You must believe in what you have to offer.

Yes, there are downsides to new construction.  One that I’ve already mentioned is paying top dollar to fund amenities the resident is not likely to use.  But there are some others too.  Because everyone is new, there is no established community.  Management is also an unknown.  Will they provide good service?  Will they not?  No one knows.

And, of course, new construction rent concessions likely mean BIG rent increases at renewal time.  Most new properties discount the rents in order to achieve their lease-up goals and replace their construction loan with a new, permanent loan.  A year later, that is no longer an issue.  So, unless your prospect wants to risk that they’re going to have to pay significantly more in a year, or possibly need to move, they may want to consider locating now into a more established, stable community.

While new apartments may have tremendous appeal, there are lots of renters who do not want to be in a large, anonymous 300-unit complex.  These people are willing to sacrifice the ‘nice-to-have’ amenities for a sense of community and safety.  They want an attractive and updated apartment that gives then a good value for their rental dollar and that can become more than a rental, it can become a home.

In the end, your ability to cater to your residents is a huge advantage.  Most new buildings rely on the building to sell itself.  Older buildings need to rely on service and attention to their residents.  Remember to focus on your strengths, ask great questions, and create a compelling leasing experience.

Yes, it may be a little more work, but most people aren’t willing to do what it takes to be successful. And that will be your advantage.