The
7525 Babcock Road San Antonio, Texas 78249
PRSRT STD AUTO U.S. POSAGE PAID SAN ANTONIO, TEXAS PERMIT NO. 1935
San Antonio Apartment Association Magazine
March/April 2012
In This Issue... • The Four Common Denominators to Successful Marketing in A Down Economy • The Goal to Learn • Supervisors Find NAAEI Designation Program Worth Time & Money • March is Red Cross Month • CPS Energy Offers Energy Savings Solutions for 2012 • NAAEI Promotes Apartment Supplier Career Path • A New Option for Appraisal Appeals
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This paper contains 10% post-consumer waste 60 | March/April 2012 | www.saaaonline.org | The RESIDENCE
marketinginformation The 4 Common Denominators to
SUCCESSFUL MARKETING
By Christine Dunn
If you ride the subway in New York City, you’ll see postings by
Google Inc., among the usual ads for secondary education and other services. Same thing in the New York Times. Google, which operates the world’s most-used search engine, buys ads and uses puzzles or questions in those ads to direct readers to searches for the answers. “Who would ever have thought that Google would advertise in a newspaper?” asks Ron Volper, PhD and author of Up Your Sales in a Down Market: 20 Strategies From Top-Performing Salespeople to Win Over Cautious Customers. But in today’s market, that’s exactly what Google should be doing, according to Volper, a business development and sales consultant who says he has helped 87 of the Fortune 500 companies improve profitability and market share. Buying behavior in both the B2B and B2C space has dramatically, and permanently, changed, yet 75 percent of companies are still selling their products in a way that no longer works, he said. “The companies that are surviving and thriving are the ones that advertise and market more, both in high tech through the Internet, and in “high-touch,” sending direct mail pieces and so on,” Volper said. “The ones that are really successful have one support and feed into the other.” Prior to 2008, customers required five touches (or contacts) to make a buying decision. Today, they require eight. The recent recession is partly responsible for that shift: More decisions are being made by senior managers or buying committees — as opposed to first-line and middle managers. Customers, both commercial and consumer, are less loyal and have cut back on purchases while seeking more proof of return on investment (ROI) for a product or service. “When companies target their products, they need to pinpoint the decision-makers more,” Volper said. “They need to pitch to a more senior-level person, and not pitch the bells and whistles of a product but how it will meet a real need, solve a real problem, and prove it.”
Educate, Advise — And Avoid Cutting the Budget 2 | March/April 2012 | www.saaaonline.org | The RESIDENCE
in a Down Economy The proliferation of information on the Internet has also contributed to the need for more contact. “It’s a double-edged sword,” Volper said. While buyers have the ability to research and learn about a product or service in depth, in some cases they find they need more advice because there’s almost too much information and they find it hard to cut through the clutter. “The people offering the products and services often don’t recognize that what the consumer or decision maker needs is advice and education,” Volper said, a cornerstone of any solid content marketing initiative. “They are leading with price when they need to be talking about value and the return on investment.” Volper said his research also shows that the majority of companies that are successful in a down market — as measured by meeting and exceeding their revenue and earnings goals, as well as capturing marketing share – have the following common denominators: 1. They have not cut their advertising and marketing budgets 2. They have not cut their sales team 3. They have cut fewer employees than their competitors 4. They have added more value to their products and services, but have resisted cutting price Since it takes more to convince consumers at either the B2B or B2C level to purchase, marketing becomes a key differentiator. The tough economy makes it easier to find deals on advertising, so it’s worth taking advantage of media discounts, Volper said.
Author: Christine Dunn Christine Dunn has almost two decades of experience writing about finance and business issues. As founder and president of Savoir Media, she works with companies and executives on developing strategic, integrated media and marketing programs. Prior to starting her awardwinning company, she worked at Bloomberg News, where she served as Boston Bureau Chief and ran industry coverage for several national teams of reporters, including consumer/retail, mutual funds and education. She also authors “Dollar for Dollar,” the personal finance blog on The Boston Globe’s Boston. com website. Follow her on Facebook www.facebook. com/ChristineODunn or on Twitter @ChristineODunn.
The RESIDENCE | www.saaaonline.org | March/April 2012 | 59
March 2012
4
5
11
NAA Capital Conference
18
12
NAA Capital Conference
19
6
7
9 a.m. Legalease 9 a.m. PSC meeting
13
NAA Capital Conference
20
Redbook Seminar
1
9 a.m. Red Cross Sub-committee mtg.
8
14
NAA Capital Conference
21
1:30 p.m. Exec. mtg. 3:30 Board mtg.
2
3
9 a.m. Programs mtg. 9-11 a.m. City Code Update/Maint. Permits 4 p.m. Community Relations mtg.
8:30 a.m. GA mtg. 9 a.m. Outreach mtg. 10:30 a.m. IRO mtg.
9
10
15
16
17
22
23
24
CAM begins
COOK-OFF 4:00-8:00 p.m.
Membership Drive begins
25
26
27
9 a.m. Take Me To Your Leader Seminar
28
CAPS Begins
29
30
31
April 2012 1
2
8
9
3
4
10
11
9 a.m. PSC mtg.
5
9 a.m. Programs mtg.
12
9 a.m. Leasing Bootcamp 1:30 p.m. Exec mtg. 3:30 p.m. Board mtg.
15
16
22
23
17
9 a.m. Safety & Rape Awareness Seminar
24
18
9 a.m. Education mtg.
25
4 p.m. Community Relations mtg.
19
TAA Education Conference in SA
26
9 a.m. Human Resources Seminar 5 p.m. EMT
29
6
7
13
14
SAAA offices closed
8:30 a.m. GA mtg. 9 a.m. Outreach mtg. 10:30 a.m. IRO mtg.
20
TAA Education Conference in SA
27
21
TAA Education Conference in SA
28
SAAA office closed half day for Battle of Flowers 5 p.m. EMT
30
The RESIDENCE | www.saaaonline.org | March/April 2012 | 3
tableofcontents feature articles... 2
24 33 35
The 4 Common Denominators to Successful Marketing in a Down Economy The Goal to Learn Supervisors Find NAAEI Designation Program Worth the Time & Money American Red Cross CPS Offers Energy-Saving Solutions For 2012 NAAEI Promotes Apartment Supplier Career Path
41
A New Option for Appraisal Appeals
17 23
special sections... 10-11 14-15 19 28 29
Installation of Officers photos Redbook Seminar Learn and Lead...Get Your Designation Membership: The Value of Your Investment in the San Antonio Apartment Association Membership Drive 2012!
30-31
Education Seminars!
in every issue... 3 7 20 45-47 48 50-51 54 55
SAAA Calendars President’s Message Education Calendar Legal Update New Member Update GA Update TAA Update NAA Update
Mission Statement The San Antonio Apartment Association offers the support and the opportunity for owners, managers and suppliers of the rental housing industry to relate, exchange ideas and experiences, and establish high standards. The Association serves as a professional, unified voice to express common issues affecting our industry and community at the local, state and national level. The Association maximizes resources to provide our members with benefits such as: access to quality educational programs, information through research and legislative involvement, and the enhancement and growth of professionalism within our industry while serving the community. Counties Served: Atascosa, Bandera, Bexar, Comal, Dimmitt, Edwards, Frio, Gonzales, Guadalupe, Karnes, Kendall, Kerr, Kinney, LaSalle, Maverick, McMullen, Medina, Real, Uvalde, Wilson, and Zavala 4 | March/April 2012 | www.saaaonline.org | The RESIDENCE
SAAA STAFF Executive Director Jeff Robinson jeff@saaaonline.org Director of Communications Kimberly Pipes kimberly@saaaonline.org Director of Education Jennifer Feeler jennifer@saaaonline.org Director of Finance & Operations Becki Perez-Clark becki@saaaonline.org Director of Government Relations Teri Bilby teri@saaaonline.org Director of Programs/Events Cheryl Hood cheryl@saaaonline.org Executive Assistant Debbie Humes-Maldonado debbie@saaaonline.org Administrative Assistant Andrea Villarreal andrea@saaaonline.org Legal Counsel David Fritsche 210.227.2726 david@lawordf.com
San Antonio Apartment Association 7525 Babcock Road San Antonio, TX 78249 210.692.7797 •877.306.4108 Fax 210.692.7277 • 877.316.1984 www.saaaonline.org
“The Residence” Magazine is published bi-monthly by the San Antonio Apartment Association, Inc. Circulated free to members. Entire contents are the © Copyright 2012 of the San Antonio Apartment Association, Inc., all rights reserved. The San Antonio Apartment Association, Inc., expressly reserves the right, in its sole discretion, to reject advertising which may subject the San Antonio Apartment Association, Inc., to liability under statutory or common law. Contributed material does not necessarily reflect the views and opinions of the San Antonio Apartment Association. Printed at Shweiki Media on FSC Certified Paper (www.fscus.org/paper).
PAST PRESIDENTS Mark Hurley - Highland Commercial Properties Donna Schmidt, CPM - Fogelman Management Group
boardofdirectors
OWNER DIRECTORS Celine Williams - Alpha-Barnes Real Estate Steve Ross - Bob Ross Realty Debbie Wiatrek - Capstone Real Estate Services Juan Carlos Suarez - Domit Management Julie Agne-Highsmith - Embrey Management Services Ryan Wilson - Franklin Development Properties Cheree Allee - Greystar Real Estate Partners Jody Marquez - Implicity Management Amber Edwards - Resource Residential
ASSOCIATE DIRECTORS Delfina Aguilar - Appliance Warehouse April Chapman, CAS - The Liberty Group Scott Milgrom - Signs Now Mary Tranchell - Vamvoras Plumbing
PRESIDENT Kelley Liserio, NCP HomeSpring Residential Services 210-682-1500
PRESIDENT-ELECT Renetta Quintana NRP Group 210-487-7878
LIFETIME BOARD MEMBERS Barbara MacManus, CAM, CAPS, CPM, Mac Real Estate Bob Ross, Bob Ross Realty (Dec.)
PRODUCT SERVICE COUNCIL BOARD
VICE PRESIDENT David Walker Gratr Landscapes 210-764-7773
President - Matt Lusk - Impact Floors President-Elect - Delfina Aguilar - Appliance Warehouse Vice President - Scott Milgrom - Signs Now Secretary - Mary Tranchell - Vamvoras Plumbing
MEMBERS AT LARGE Liz Johnson - Alamo City Recovery Joe Anthony Guerrero - Bexar Towing Nicole Plummer - CORT April Chapman, CAS - The Liberty Group Tiffany Koch - Lone Star Carpet Cathy McCoy - Time Warner Cable Past President - Nancy Payne, CAS - For Rent Media Solutions
___________________________________________________ TEXAS APARTMENT ASSOCIATION President - Jeff Lowry, CAPS Vice President at Large - Mark Hurley Delegates - Mark Hurley; Kelley Liserio, NCP; Matt Lusk Allyson McKay, CPM; Renetta Quintana; Mike Rust; Donna Schmidt, CPM Alternates - Delfina Aguilar; Nancy Payne, CAS; Marc Ross; Steve Ross , Cheree Allee
___________________________________________________ NATIONAL APARTMENT ASSOCIATION Chairman - Jerry Wilkinson, CAPS, CCIM Regional Vice President - Mike Clark Delegates - Mark Hurley; Kelley Liserio, NCP; Renetta Quintana; Steve Ross; Donna Schmidt, CPM Alternates - Allyson McKay; Jeff Robinson; Marc Ross; Mike Rust
TREASURER Mike Rust, CAPS Shelter Corporation 210-767-8104
SECRETARY Allyson McKay, CPM Lincoln Property Company 210-499-0314
PSC PRESIDENT Matt Lusk Impact Floors 210-249-0300
The RESIDENCE | www.saaaonline.org | March/April 2012 | 5
6 | March/April 2012 | www.saaaonline.org | The RESIDENCE
Kelley Liserio
president’smessage
HomeSpring Residential Services
Spring is almost here and the year is quickly going by! With the world being so easily connected and needing instant communication, instant answers and instant success, it’s easy to let some important things slide by like continuing your education. Hopefully it is always at the forefront of our minds to stay informed and never stop learning! The San Antonio Apartment Association offers so many opportunities to further your education and continue a path of success for your career! This year we are offering two Redbook classes as well as a multitude of seminars covering topics from Customer Service and Resident Retention to Human Resources and Crime Prevention. Our Education Department is the “go to” resource for furthering your professional development. Have you considered getting your professional designation or going to the next level in your designation? Designations tell the world you take your career seriously and are dedicated to your craft and the multi-family industry. This year we have made the PEP (Professional Education Program) more affordable to all our members. For the first time ever, pricing is based on the size of your property. If you haven’t signed up yet, it’s not too late…take advantage of the free PEP seminars and discounted designation rates! Another way to further your education is to take online classes through the SAAA Online University. It’s easy, affordable, and best of all…you can take the classes in your pajamas from home! The list of available classes continues to grow so there is unlimited opportunity for learning and becoming an industry leader. Visit
the Education tab of our website to take a tour or get started at www.saaaonline.org. Our industry is always changing and with these changes come new challenges and opportunities. Having a strong education, designation and professional knowledge of the industry helps you stand out in a competitive workforce. SAAA’s education department features an impressive lineup of topics, instructors and leaders. Plan to join us for as many of these events as possible. You won’t regret it and it’s a great investment in YOU! Have more questions or just want more information about your career development? Contact our Director of Education, Jennifer Feeler at 210.692.7797 or jennifer@saaaonline.org. You can also access information 24/7 at www.saaaonline.org. Want to help others with their continuing education? Consider joining the Education and/or Outreach Committees! Just a reminder that the TAA Education Conference will be in San Antonio this year, April 19-21, and we are proud to be the host city! Let’s show Texas that San Antonio can bring the numbers. Get your teams and get to the conference. I hope to see you all there ........ Game On!
pscpresident’smessage Rome wasn’t built in a day! But I would dare to say that those dedicated PSC members that put together our First Annual Casino Night probably would have built it in a few hours. The event was held following the Industry Achievement Awards Dinner at the Valero Energy Corporation on February 23, 2012 . I would like to send a huge “ thank you” to Mary Tranchell (Casino Night Chairperson) for a job well done! If I didn’t know better, I would have thought we were at the Forum Shops at Caesar’s Las Vegas.
Matt Lusk Impact Floors
Blackjack to the Let it Ride tables, and let’s not forget the ever popular “slots”. I would also like to thank the SAAA staff for their dedication to detail, which made this inaugural event special. Looking forward, we are all very excited that the Annual Cook-Off and Maintenance Appreciation Day has been moved up to March 24 at 4:oo p.m. at the Helotes Fairgrounds. We all know that late March weather is hard to beat, and should give everyone the chance to come out enjoy some great food, drinks, and music. So come out and show your support, for this is our “Rome”. Let’s get to building!!
The participation and sponsorship support from the vendors and management companies were on full display. From Craps tables, to the Roulette wheels, from (my favorite) The RESIDENCE | www.saaaonline.org | March/April 2012 | 7
210-325-7155 apartments.com 210-648-0799 alamocityrecovery.com 210-499-5998 • apartmentguide.com
210.348.0346 • bgstaffing.com
210-590-6200 bexartowing.net
210-615-8264 cort.com
210-697-9200 coinmachcorp.com
210-377-3116 forrent.com
281-261-6334 dixiecarpet.com 8 | March/April 2012 | www.saaaonline.org | The RESIDENCE
210-764-7773 gratrlandscapes.com
800-431-3000 hdsupply.com
210-525-7966 thelibertygroup.com
512-836-9311 lonestarcarpets.com
210-389-9216 impactfloors.com
210-212-4444 rasafloors.com
210-520-6699 signsnowsa.com 210-257-0000 redicarpet.com 210-582-9586 twc-sa.com
210-341-2004 vamvorasplumbing.com
210-734-0000 worldwidepest.com The RESIDENCE | www.saaaonline.org | March/April 2012 | 9
10 | March/April 2012 | www.saaaonline.org | The RESIDENCE
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Don’t forget...
you can purchase Gift Certificates for education seminars at SAAA!
camtinears
_____ _ _ _ _ __ _ _____ _ e _ s _ _ n _____ _ _ _ tio _ _ a _ c _ u _ _ _ d _ __ al e _____ _____ _ _ gener _ _ r _ _ o _ _ __ f _ used ____ _____ _____ _ _ _ e _ _ _ b _ _ _ o _ _ _ T __ __ __ _____ _____ _____ _ _ _ _ _ _ _ _ _ __ _ _ _ ____ ____ ____ _____ _ _ _ _ _ _ _ _ : _ _ _ _ O _ _ __ __ DT ___ _____ _____ :____ SENTE _ _ E y _ _ R b _ _ P _ d _ E __ __ rize FICAT _____ _____ Autho _ _ _ _ CERTI _ _ _ _ __ ___ by:__ _____ : d e M z i O r FR Autho
t f i G
icate
Certif
i f i t r Ce
_____
N
___ o: ___
They make a great gift for your employees, customers and co-workers!
Contact jennifer@saaaonline.org for information!
12 | March/April 2012 | www.saaaonline.org | The RESIDENCE
V At EN ten D tion O : R S
ONLY $35
Don’t miss this owner panel discussion featuring:
Mike Rust, Shelter Corporation Cheree Allee, Greystar Renetta Quintana, NRP Group
March 27th from 9:00 - 11:00 a.m. at the SAAA Education Center
To register or for more information, contact Jennifer Feeler at 210.692.7797 or jennifer@saaaonline.org The RESIDENCE | www.saaaonline.org | March/April 2012 | 13
th Wor on 1 MCEs i s s 7 Se Cs & 7 CE orth n 2 W CEs o i s Ses s & 3 M C 3 CE
REDBOOK Tuesday,
March 20, 2012
Marriott NW - 3233 NW Loop 410 Session 1 - Full Day - 6 Hours Session 2 - Half Day - 3 Hours Featuring San Antonio Apartment Association Legal Counsel
R. David Fritsche
Contact jennifer@saaaonline.org to register for this vital seminar!
14 | March/April 2012 | www.saaaonline.org | The RESIDENCE
The RESIDENCE | www.saaaonline.org | March/April 2012 | 15
Mission Statement
The Mission of Implicity is to provide excellent service to our Clients, our Residents and our Employees. We will achieve this through: • Being a results-driven company • Providing a safe and secure environment for our Residents to live • Focus on Employee growth and happiness by providing continuing education, recognition and a true interest in our employees’ well being • Focus on Cash Flow and Asset Value for our Clients • Providing valuable market research to our current and future clients to help in the decision-making process for acquisition and disposition of assets
Services
Property Management Due Diligence Surveys Construction Management Real Estate Consulting Services
Implicity Advantages Team Integrity Transparency And Accountability Expertise Dedication
Contact Us:
Implicity Management Company
16 | March/April 2012 | www.saaaonline.org | The RESIDENCE
8603 N. New Braunfels Suite 101 San Antonio, Texas 78217 Ph: 210.829.7770 Fax: 210.829.7772 www.implicitymanagement.com
Learn
The Goal to by: Cheryl Wilms
Do you have a goal to learn? Do you strive to continuously gain more knowledge and have a better understanding of the world in which you reside? Do you have a thirst for knowing more in the subjects in which you are interested in?
Internet: Google–need I say more?
The goal to learn more is powerful in achieving success in our lives. If we do not learn, we do not progress, if we do not progress, we stay stagnant. The pursuit of more knowledge is one that I can Give yourself the gift of pushing yourself to learn relate to. There is not a day that goes by where in order to become the person you want to become. I’m not looking into something or striving to push myself towards becoming a better person. I firmly believe that we need to continue to learn and educate ourselves to reach our full potential. Ways that we can all continue to learn and grow into the person we desire to be are: Reading: I cannot stress how reading is such a simple yet powerful way to improve ourselves. We have libraries available to us. All the knowledge and the answers to so many of our problems are there for us to utilize, most of them are free of charge or a small charge for the About The Author year. The answers are all there in one building….. Cheryl Wilms is a WAHM Coach and Law of Attraction enthusiast providing resources for Moms seeking personal transwe just need to go get the answers. Courses: There are courses for so many interests these days. If you search out your area of interest, you will be surprised to learn that there are courses, seminars, and events that allow you to learn more about your interest and meet others who are interested in that subject which will allow you to learn from them as well.
formation. Cheryl is dedicated to showing women how apply the law of attraction into their daily lives and empowering themselves up to discovering the incredible power we hold within. She is also an advocate of positive and inspirational living. Cheryl has always been aware of her passion to provide insights to others to connect with their inner power and to live a life we desire. Since then she has been studying and emersing herself with anything she can get her hands on with the subject for the last 15 years. Cheryl is currently pursuing a career with WAHM coaching and is also an aspiring writer.
The RESIDENCE | www.saaaonline.org | March/April 2012 | 17
Thanks to our 2011 Professional Designates and Candidates! CAM Laura Abundis, Guillermo Abundis Management Aimee Anderson, Shelter Corporation Teresa Carey, Blue Bonnet Holdings Shanae Garcia, NRP Group Veronica Garcia, Capstone Management Rick Gledhill, US Army Jennifer Gonzalez, Greystar Amanda Koenning, HomeSpring Lysette Maldonado, HomeSpring Haydee Martinez, Residence Property Company Rosey Miller, Regional Investment Management Kara Morkovsky, Lincoln Properties Adela Munoz Rios, Lincoln Properties Stephanie Nino, SWL Management Gary Obaya, SAHA Max Ortiz, SAHA Scott Pullen, Greystar Angelica Ramirez, Guillermo Abundis Management Eddie Rodriguez, The Lynd Company Robert Rodriguez, Rodriquez Apartments Lacy Sanchez, The Lynd Company CAMT Raul Flores, Francis Property Management Luis Martin, GLS Investments David Pena, HomeSpring Christopher Vaca, National Church Residences
SAAA MEMBERS:
Eat at Big’z, then give your receipt to SAAA and Big’z will donate 10% of your food purchase to the
American Red Cross!
2303 North Loop 1604 West, San Antonio, TX 78258 & 10106 State Highway 151, San Antonio, TX 78251 18 | March/April 2012 | www.saaaonline.org | The RESIDENCE
CAPS Laura Dominguez, Shelter Corporation Deborah Flach-Aleman, SAHA Samantha Freeman, Capstone Management Lora Havrda, SAHA Vincent Lewis, SAHA Jennifer Morales, Shelter Corporation Summer Murray, Greystar Yvonne Podufaly, The Hayman Company Carolyn Rowan, Shelter Corporation Mike Rust, Shelter Corporation Zachary Shipley, SAHA Anna Whitby, SAHA Bernice Wyatt, SAHA CAS Jeff Van Slycke, Safety Leadership Strategies
Learn and Lead...
Get Your Designation Certified Apartment Manager
The on-site manager is a vital link between apartment residents and the community owners and investors. The manager must provide satisfactory accommodations for the residents as well as a strong bottom line on the owners investment. That’s why an increasing number of owners and investors are seeking NAA-designated CAM, Certified Apartment Managers, to fill their staffing needs. Established in 1972, and recently updated, the CAM program teaches students: Management of Residential Issues, Legal Responsibilities, Risk Management, Human Resource Management, Fair Housing, Marketing, Property Maintenance for Managers, Financial Management, and Community Analysis For over 30 years the CAM program has been in place to educate and professionalize the rental housing manager.
Certified Apartment Maintenance Technician CAMT training includes seven courses: The two non-technical courses consist of online learning followed by online practice scenarios; the five technical courses consist of hands-on classroom training followed by online practice scenarios. Non-Technical Courses: Inside the Apartment Business; People, Projects and Profits Technical Courses: Electrical Maintenance and Repair; Plumbing Maintenance and Repair; Heating, Ventilation and Air Conditioning (HVAC); Maintenance and Repair Appliance Maintenance and Repair; Interior and Exterior Maintenance and Repair Programs may be taken as standalone seminars or in full to earn the industry designation. CAMT certificate candidates must have one year of apartment or rental housing maintenance experience; successfully completed the seven courses and online content listed above (which total 90 ½ hours); and meet all examination requirements within 24 months of declaring candidacy for CAMT.
Certified Apartment Portfolio Supervisor Take the next step in your professional development and become a certified success by earning your Certified Apartment Portfolio Supervisor (CAPS) designation. The National Apartment Association Education Institute (NAAEI) offers this nationally recognized designation for multi-site supervisors and experienced apartment managers with a CAM, ARM or RAM designation. To obtain a CAPS designation you must: have worked as a multi-site supervisor for 24 months or be a CAM, ARM or RAM designate in good standing with 24 months of management experience; successfully complete the five courses listed below (which total 40 hours); and, meet all examination requirements, within 24 months of declaring your candidacy for CAPS. CAPS training covers: Legal Responsibilities and Risk Management; Financial Management; Property Performance Management; Property Evaluation and Due Diligence; Effective Leadership
Certified Apartment Supplier Suppliers are important liaisons to the multi-family housing industry. This course is designed as an opportunity for suppliers to hear the everyday challenges faced by the apartment manager customer. Held in conjunction with the CAM course, CAS students will learn: Management of Residential Issues; Risk Management; Financial Management and choose from the following list of electives: Legal Responsibilities; Human Resource Management; Fair Housing; Marketing; Property Maintenance for Managers. CAS is designed for Vendor members who want to increase their industry knowledge and get a better understanding of their multi-family housing customer’s needs. There are no pre-requisites to register for CAS, and supplier members are encouraged to join their industry peers and enroll today. The RESIDENCE | www.saaaonline.org | March/April 2012 | 19
2012 Education Calendar Month
Date
Class
Time
Credits
March 6 March 20 March 22 March 27 March 28
Legalease Redbook, Session 1 Session 2 CAM begins Take Me to Your Leader CAPS begins
9-12 9-4 1-4
April April April April
10 17 24 25
Leasing Bootcamp Rape & Safety Awareness Electrical Maintenance Technician (EMT) Human Resources
9-1:30 9-1 5-9 9-12
4 4 8 3
CECs CECs CECs CECs
May May May May May
3 8 15, 16 & 17 22
Pool Rules Creepy, Crawly Bugs, Oh My! Raising Rents Certified Pool Operator (CPO) Deal or No Deal
8:30-12:30 9-11 9-12 8-5 9-12
4 2 3 8 3
CECs CECs CECs CECs CECs
June June June June
5 12 19 19 & 21
Fair Housing Budget Basics Learn from the Top Dogs Electrical Maintenance Technician (EMT)
9-12 9-12 9-12 5-9
3 3 3 8
CECs CECs CECs CECs
10 17 25
Leasing Bootcamp How May I Help You – Customer Service Leadership
9-1:30 9-12 9-12
4 CECs 3 CECs 3 CECs
2 7 14 21 & 22 27-31
Take Me to Your Leader Crime Prevention Show Me the Money CFC CAMSLAM
9-11 9-12 9-12 9-5 8-6
3 CECs 3 CECs 8 CECs
September September September
6 11 27
Building Your Dream Team Book Series, John Maxwell - Leadership Exceptional Service for Maintenance
9-12 9-12 9-12
3 CECs 3 CECs 3 CECs
October October October
16 16 & 18 18
Love the One You’re With/Resident Retention
Electrical Maintenance Technician (EMT) Fair Housing
9-12 5-9 9-12
3 CECs 8 CECs 3 CECs
November November November
6 13 15
Word of Mouse & Mouth Marketing Leasing Bootcamp Legalease
9-12 9-1:30 9-12
3 CECs 4 CECs 3 CECs
December
11
Stress Management
9-11
2 CECs
July July July August August August August August
& 26
HIGHLIGHTED CLASSES ARE FREE TO PEP SUBSCRIBERS! Classes & dates are subject to change
20 | March/April 2012 | www.saaaonline.org | The RESIDENCE
3 CECs 7 CECs 3 CECs
9-11
SAAA’s
Online University SAAA has partnered with the National Apartment Association Education Institute (NAAEI) and CallSource to launch a universal online-based Learning Management System (LMS) that will be utilized across all NAA affiliates.
On this new system, you can take online courses 24 hours a day without leaving your home or office!
Class List: • Bed Bugs 101 • Dealing with Difficult People • Setting the Appointment • Don’t Let the Mold Get Old • Preventive Hiring • Art of Resident Retention • Marketing with Little or No Money • Fair Housing for Maintenance • Customer Service & the Maintenance Team • Customer Service & the Office Team • Dealing with Difficult People, Supervisor Version • Coaching for Development • Improving Time Management Skills • Art of Building Traffic
The courses are only $58 for SAAA Members and $68 for non-members Go to the SAAA website at www.saaaonline.org, click on the Education tab and then the Online Education tab for instructions, tutorials and more. Classes continually added - check the website for updates! Spanish versions available! The RESIDENCE | www.saaaonline.org | March/April 2012 | 21
22 | March/April 2012 | www.saaaonline.org | The RESIDENCE
Supervisors Find NAAEI Designation Programs
Worth the Time & Money BY MAUREEN LAMBE
Certificate for Apartment Maintenance Technicians (CAMT) Seventy-five percent of supervisors reported that their employee(s) who went through the CAMT program received a promotion, salary increase and/or one-time bonus after successful completion of the course. “The program provides an absolute 100 percent return on investment,” one respondent said. “The program also gives the employee much more confidence, to be able to pass such a comprehensive course.” Another commented, “As a company, we want to equip all of our employees to be the best in their field. Obtaining NAA designations shows our commitment to the employee and their commitment to our industry.”
B
y gaining valuable training, a high percentage of employees with NAAEI designations boosted their performances and received a promotion, salary increase or one-time bonus. Supervisors say NAA Education Institute (NAAEI) designation programs are not only worth the time and money of sending employees through the classes but also give employees the tools they need to better perform on the job, according to a recent survey. To obtain program feedback so that we can continue to improve the courses, we conducted the survey in the first quarter of last year among 724 supervisors who had recently sent an employee through one of the NAAEI designate programs. The survey had a 12.3 percent response rate, which is a rate that is well above average for most surveys. When developing the skill standards for each program—Certificate for Apartment Maintenance Technicians (CAMT), Certified Apartment Portfolio Supervisor (CAPS), Certified Apartment Manager (CAM) and National Apartment Leasing Professional (NALP)—we brought in subjectmatter experts to create the curriculums around the essential skills needed in each area. The results from this survey validate their work by demonstrating that employees return from the classes better equipped to do their jobs. Among the survey highlights: • 98 percent of all respondents either agreed or strongly agreed that the designation courses were a good use of company time and money • 76 percent said that it was not an issue to have their employee out of the office to take the designation course • 86 percent of all supervisors saw an improvement in their employee’s work performance following the completion of their NAAEI designation • 100 percent of those surveyed would enroll employees in designations in the future Additionally, the survey provides specific insights related to each designation program.
Certified Apartment Portfolio Supervisor (CAPS) One supervisor said the course provided employees with improved confidence and helped with retention and financial performance. The course also helped employees who may have been new to the industry better transition into their new careers. “Our CAPS candidate came to our organization with a strong education (MBA) from a non-related industry,” the respondent said. “We needed to find a way to help him get immersed into our business. The CAPS course was part of our overall strategy.” Certified Apartment Manager (CAM) Fifty percent of supervisors reported that their employee(s) who went through the CAM program received a promotion, salary increase and/or one-time bonus after successful completion of the CAM course. “A professional employee who trained under this program gets to know the core of management, which is problem prevention,” one supervisor said. “This is where the company sees the largest return on investment, since preventing a vacancy, or a large maintenance issue, is the difference between being profitable or going into negative numbers. The course trains the managers to open their eyes and look in all directions.” Another said, “[The course] lays the foundation for our leasing professionals to be promoted to assistant manager. We don’t allow a promotion to assistant [manager] without it. We try not to hire employees in manager’s positions without it.” Another had this to say about NAAEI’s designation programs: “Priceless! You can’t quantify the benefits a company receives from continued education. NAA’s designations have improved the quality of individual performance across the board.” NAAEI will make this an annual survey with the 2011 survey serving as a benchmark. For information on NAAEI designation programs, visit www.naahq.org/education/designationprograms. Maureen Lambe, CAE, is Executive Vice President of NAAEI. She can be reached at 703/797-0601 or maureen@naahq.org.
The RESIDENCE | www.saaaonline.org | March/April 2012 | 23
By BJ Mamuzic, Philanthropy Committee Chair American Red Cross, San Antonio Area Chapter
W
hen I think about what the American Red Cross means to me, images of my 79-year-old Aunt Darinka immediately flood my mind. Since my childhood, I’ve been aware of the Red Cross, but their value became very real to me on June of 2009. On that day, Aunt Darinka’s world turned upside down. Her home of more than 40 years burned to the ground, leaving nothing more than charred remains. She was traumatized and in shock to the point of requiring several days of hospitalization. As Aunt Darinka’s next of kin, I was the one who received that all-dreaded call in the middle of the night. I was traveling on business and many, many miles away from her side. But the very next call I received was from a Red Cross volunteer, asking what assistance she could offer. Darinka spent over a week in the hospital, recovering from smoke inhalation and heart arrhythmia. Thankfully, her immediate needs were being addressed. I was able to get to the hospital, too. But what would happen once she left the hospital’s care? She had nothing left.
To my great relief, the Red Cross followed Aunt Darinka’s case with relentless pursuit. They called me each and every day for two weeks to see how they could help her out. They told me they could arrange to
provide her with a temporary place to live, if needed, as well as clothing, linens, toiletries, even financial assistance. And once she found a permanent place to live, they would gladly assist her with furniture and any other items she might need. Today she lives happily in an assisted living community which provides her the independence she wants with the medical oversight she needs. But to this day -- she still holds on dearly to the Comfort Care Kit that Red Cross provided her the night of the fire. I now have the privilege of serving on the Red Cross’s Board of Directors in San Antonio. I consider it an honor to give my time, talent and treasure to the organization that paid so much attention to one little lady in one big town. With no family readily nearby, she could have easily been overlooked in her time of crisis. It’s not as if an earthquake rumbled through the city and left thousands homeless. One little lady … one Big Town … One Red Cross that cares for the little things and the big things without discrimination. What a great mission to embrace! As March is Red Cross Month I think back to not only my Aunt Darinka but to all the other aunts, uncles, family and friends who have been assisted by this organization. Each year the American Red Cross responds to over 70,000 home fires across this country. The assistance provided, like what my dear aunt experienced, could not be made possible if not for the dedicated volunteers and generous donors who help carry out the mission of the Red Cross: to prevent, prepare and respond to emergencies.
MARCH IS RED CROSS MONTH The RESIDENCE | www.saaaonline.org | March/April 2012 | 24
There is a Hero in all of us! Help us reach our goal of
$25,000!
The San Antonio Apartment Association’s Annual Heroes for the American Red Cross Campaign kicks off February 21st and runs through April 30th!
Don’t forget to visit “Kid’s Corner” at our Annual Cook-off on March 24th! Wristbands are $7 and proceeds will go to the American Red Cross!
Property Heroes = most money raised by a single property ($1,000 minimum) Management Company Heroes = most combined funds raised by a management company ($1,000 minimum) • Get residents involved! • Challenge your on-site personnel! • Get your owners involved!
BE A HERO! Sign up your property or management company to participate this year!
• Get creative and
HAVE FUN!!!
Contact kimberly@saaaonline.org for information. The RESIDENCE
We will recognize our SAAA Heroes at the Spring Mixer on May 17th! | www.saaaonline.org | March/April 2012 | 25
26 | March/April 2012 | www.saaaonline.org | The RESIDENCE
Safety & Rape Awareness Tuesday, April 17, 2012
seminar
9:00 a.m. - 1:00 p.m. - Lunch Included
Learn about everyday safety procedures including: • How to survive if you are attacked • On-site crime prevention • Importance of company policy and procedure • How to set up crime prevention meetings, neighborhood watch programs and more! • In-house market resources Special Guest Speakers from Safety Leadership Strategies and The Rape Crisis Center!
$68 Members $99 Non-members FREE for PEP 3 CECs
Presented by:
Patricia Stitch-Langford of Apartment Solutions
My seminar could save did not tell anyone where I people aware of the impor- are attacked. was going or take any safe- tance of company policy your life someday! I was brutally attacked, raped and almost killed by a serial rapist while showing an apartment. I did not practice company policy and procedure requiring all employees to take a driver’s license before leaving the office with a prospect that day and it changed my life forever! I
ty measures either, so I was the perfect target for someone wanting to do harm.
I was not the only person in harm’s way that day. There were three of us attacked on different propererties within 24 hours by the same person. I now give seminars to tell my whole story and make
and procedure in the workplace and what can happen when you don’t do it. I teach people to be aware of your surroundings at all times. I give out crime prevention and safety tips to avoid being put in harms way. I train on how to avoid showing an apartment without discrimination if you feel threatened and how to survive if you
My goal is to save lives by sharing my story and my safety programs. Please be aware of your surroundings at all times and stay safe!
stop, look, and live!
Patricia
The RESIDENCE | www.saaaonline.org | March/April 2012 | 27
Membership: The
Value of Your Investment in the San Antonio Apartment Association!
BUSINESS OPPORTUNITIES:
The San Antonio Apartment Association (SAAA) provides networking events year round through activities such as New Member Orientations, Mixers, Bowling, Golf Tournaments and our annual Business Expo. Each of our events draws big numbers of owners, managers, and suppliers who are ready to build business relationships and further advance our multi-housing industry.
ADVERTISING OPPORTUNITIES:
SAAA members are able to directly reach their target market through our Residence Magazine, Directory & Buyer’s Guide, our SAAA Weekly Update and the SAAA website. Each of these pieces has an expansive circulation and audience and is viewed by the decision makers of our industry! The SAAA website offers advertising opportunities for your company or employment postings through our Career Center.
LEGISLATIVE REPRESENTATION:
SAAA works tirelessly to protect and further the interests of rental housing owners, managers, and suppliers at the local, state, and national levels. We take a proactive approach to your concerns and make sure our unified voice is heard at all levels of government.
TAA LEASE FORMS:
SAAA members have exclusive use of the most widely accepted standard for legal documents between rental housing residents and rental property owner and managers in the nation. We offer everything from rental applications, lease contracts and move-in inventory forms to the TAA Redbook, the “Bible” of rental housing law in Texas. These forms have withstood countless legal challenges for more than 30 years.
MULTI-FAMILY COMMUNICATIONS:
One of our primary goals is to communicate important information to our members. As a member of SAAA, you also become a member of the Texas and National Apartment Association. You will receive industry communications from all levels to help you stay current and up to date on the happenings in our industry. You will also receive Weekly Updates from us to keep you informed and active at the local level.
PROFESSIONAL EDUCATION:
SAAA provides year round education for our members. We offer NAAEI’s national industry designation courses; Certified Apartment Manager, Certified Apartment Maintenance Technician, Certified Apartment Portfolio Supervisor, and Certified Apartment Supplier as well as programs covering Fair Housing, Leasing, Redbook, and Certified Pool Operator courses, Marketing, Sales, Negotiations, to name just a few of what SAAA has to offer.
COMMUNITY SERVICE:
SAAA strongly believes in giving back to the community. We partner with the American Red Cross, the 100 Club of San Antonio, and SAPD’s Operation Blue Santa. Our members have generously donated countless hours of time, food, money, and supplies to help non-profits in our area.
28 | March/April 2012 | www.saaaonline.org | The RESIDENCE
VENDOR BENEFITS
OF SAAA MEMBERSHIP Only members have a chance to network with potential clients who manage over 150,000 rental units in San Antonio and 21 surrounding counties. Membership lists and mailing labels are accessible only to our members. Advertising opportunities through THE RESIDENCE magazine, the Weekly Update the website, and the Annual Buyer’s Guide and Directory can put your company name in front of hundreds of potential buyers. As a member, your company receives a free listing in two places in the Directory. Another means of advertising is to participate in, or sponsor, one of our many events throughout the year. The annual Business Expo provides a forum to exhibit your products and/or services at a reasonable cost. As a member, you can participate on any number of Association Committees. These committees provide unbeatable networking and sponsorship opportunities. You will be assigned a “Buddy” at the New Member Orientation. The goal of the Buddy program is to help you maximize the success and benefits of your membership. Buddies will stay in contact with you to attempt to answer any questions you may have and assist you increasing your participation at Association events.
Competition Dates: March 22nd - May 24th Prizes: Money and Bragging Rights!
This competition might get rough!
Kick-off meeting is on March 22nd at 4:15 p.m. More info to follow...
Are you up for the challenge?
If you’re interested in joining a team, contact SAAA at 210.692.7797
continued on page 52
The RESIDENCE | www.saaaonline.org | March/April 2012 | 29
Education HUMAN RESOURCES Speaker: Natalie Rougeux, Rougeux & Associates Date: April 25, 2012 Time: 9:00 a.m. - 12:00 p.m. Place: SAAA Education Center Credits: 3 CECs FREE FOR PEP!
POOL RULES Speaker: Marc Ross, Bob Ross Realty Date: May 3, 2012 Time: 8:30 a.m. - 12:30 p.m. Place: SAAA Education Center Credits: 4 CECs FREE FOR PEP!
CREEPY, CRAWLY BUGS... OH MY! Speaker: Worldwide Pest Control Date: May 8, 2012 Time: 9:00 a.m. - 11:00 a.m Place: SAAA Education Center Credits: 2 CECs FREE FOR PEP! 30 | March/April 2012 | www.saaaonline.org | The RESIDENCE
Seminars! RAISING RENTS Speaker: Debbie Wiatrek, Capstone Date: May 15, 2012 Time: 9:00 a.m. - 12:00 p.m. Place: SAAA Education Center Credits: 3 CECs
CERTIFIED POOL OPERATOR (CPO) Date: May 16 & 17, 2012 Time: 8:00 a.m. - 5:00 p.m. Place: Northside Natatorium Credits: 8 CECs
DEAL OR NO DEAL? Overcoming Leasing Objections Speaker: Barbara Savona, Sprout Marketing Date: May 22, 2012 Time: 9:00 a.m. - 12:00 p.m. Place: SAAA Education Center Credits: 3 CECs FREE FOR PEP! The RESIDENCE | www.saaaonline.org | March/April 2012 | 31
Inspirational Quotes... Life’s ups and downs provide windows of opportunity to determine your values and goals. Think of using all obstacles as stepping stones to build the life you want.
- Marsha Steiner -
Be ready for when your time comes, you will have that window of opportunity, so seize the moment and capitalize on it!
- Anthony Anderson -
The whole purpose of education is to turn mirrors into windows.
- Sydney Harris -
For All of Your Asphalt Needs, All Roads Lead to Ramming
u Asphalt Paving u Asphalt Patching & Repairs u Seal Coating u Crack Seal u Striping u Concrete Patch & Repairs u ADA Compliance 32 | March/April 2012 | www.saaaonline.org | The RESIDENCE
105 Nell Deane Blvd Schertz, TX 78154
210.531.0200
CPS Energy Offers Energy-Saving Solutions For 2012 Did you start the year motivated to make some changes? Maybe you decided to lose some weight, get organized or pay off some debt. Whenever you tackle a New Year’s resolution, you need a good place to start and a plan to keep you on track.
that join Peak Saver enjoy the savings and the convenience of controlling the AC units for their properties. The program can help you save up to 10 percent or more on heating and cooling costs. Peak Saver also provides a convenient way to access and adjust thermostats via the Internet.
If one of your objectives is to reduce business costs like energy bills, the CPS Energy Savers program is a good place to start. There are plenty of commercial energy rebates and programs to help you stay on track and lower energy bills for your properties. All you need to do to get started is visit cpsenergysavers.com.
Peak Saver customers enjoy the convenience of controlling the thermostats from just about anywhere with Internet access. An online program allows customers to log in and easily change settings from a computer or laptop.
There are also some low-cost measures that can help save energy, reduce peak demand, and lower operating costs. Share these energy efficiency tips with your staff to help reduce energy costs: • Maintain heating and cooling systems. Make sure that heating and cooling system equipment is cleaned and inspected by a qualified technician at least once per year. Regularly check for and repair leaks around seals, valves, pipe joints, and instrumentation. Check gauges and other instrumentation to ensure that they are in line with building maintenance policies or manufacturer’s recommendations. • Maintain lighting systems. Regularly clean and dust lamps, fixtures, and lenses every 6 to 24 months. This will maximize light output and reduce the need for additional or task lighting. Consider group relamping. This does not cost extra in terms of installation and it saves on labor while helping to maintain light output • Get everyone involved. Educate staff about the importance of conserving energy and their role in improving energy efficiency. Post reminders about turning off lights and equipment when not in use. Hold regular meetings about energy policies and solicit conservation ideas from staff. Peak Saver is a ‘Win, Win’ for Customers, CPS Energy Peak Saver is another great program that will help make your facilities more energy efficient. Commercial customers
Plus, the thermostat is free (a $300 value) and you don’t have to install it yourself. Getting a Peak Saver thermostat is a win-win for customers and CPS Energy because it helps save energy during “peak” demand times like hot summer afternoons. Through Peak Saver, you agree to let CPS Energy remotely access your central air conditioner to cycle your compressor off for a short period of time. Cycling only occurs on days when energy demand is at its highest. This is likely to occur during the hot summer months of South Texas, between May and September, when local energy demand is at its “peak.” Cycling off your compressor should occur for approximately ten minutes each half hour between the hours of 3 p.m. and 7 p.m., Monday through Friday. However, you’ll hardly notice that your air conditioning is off -- the temperature increase is generally no more than two degrees. Customers interested in signing up for the free Peak Saver program can apply online at cpsenergy.com, print an application or call us toll-free at (866) 2227645.
Make 2012 a Year of Savings
These are just a few ways you can save energy in 2012, but there are lots of other rebates and programs available to help you lower energy bills. It’s not too late to use these tools and strategies to make 2012 a big year of savings. For more information about CPS Energy Savers, email BetterBuildings@cpsenergy.com or call (210) 353-2220. The RESIDENCE | www.saaaonline.org | March/April 2012 | 33
34 | March/April 2012 | www.saaaonline.org | The RESIDENCE
NAAEI Program Promotes
Apartment Supplier Career Path BY MAUREEN LAMBE
As the NAA Education Institute (NAAEI) works to promote careers in apartment leasing, maintenance and management, it also needs to promote the apartment supplier career path, frequently a path that starts as a leasing consultant, maintenance technician or community manager. Our supplier partners play an important role in the multifamily housing industry and are also critical to the support of our local, state and national associations. But their job is not an easy one. They must be experts in not only their own products and services but also the ways in which the apartment business operates. That’s why NAAEI offers the Certified Apartment Supplier (CAS) program and is in the process of piloting a new course called “Supplier Success,” which provides new apartment industry suppliers with an overview of the multifamily housing industry.
We held our first Supplier Success courses in Dallas in August. Based on feedback we received, we are expanding course content from a half-day to a fullday program. The course covers topics such as the economic impact of the multifamily housing industry, identifying decision-makers, how suppliers can support the multifamily housing industry through association participation, apartment community operations and the importance of building relationships in the multifamily industry. The course is co-taught by an apartment management professional and a supplier partner or partners. “We offer this course as an introduction to the apartment industry as a way for suppliers to get to know the industry better,” says Shana M. Treger, NAAEI director of instructional design. “We heard from many participants that they wish the information covered in continued on page 40
The RESIDENCE | www.saaaonline.org | March/April 2012 | 35
36 | March/April 2012 | www.saaaonline.org | The RESIDENCE
Thursday
May 17, 2012 6:00 – 9:00 p.m.
La Hacienda Los Barrios 18747 Redland Road
Don’t miss this event! Food, drinks and fun with friends! Contact cheryl@saaonline.org for information!
A Diamond Sponsored Event!
The RESIDENCE | www.saaaonline.org | March/April 2012 | 37
38 | March/April 2012 | www.saaaonline.org | The RESIDENCE
EDUCATION Join one of our education seminars this year...
see what opportunities you’ve been missing!
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The RESIDENCE | www.saaaonline.org | March/April 2012 | 39
the Supplier Success course had been available when they first started working in the apartment industry.”
How the Industry Works Eric Overhage, President of Multifamily Services Group, helped teach the Dallas course and worked with Tony Sculthorpe of Coinmach and our staff to design the course. Overhage believes the course is a leap forward for supplier partners because it can help them reduce the costs involved with training a new salesperson. He says the industry typically sees a 40 percent dropout rate among new salespeople in the first year because they are not familiar with the apartment industry and don’t understand how it works. For example, Overhage says, many salespeople who are new to the industry don’t understand that an apartment community’s management frequently does not have the authority to make purchase decisions. The Supplier Success course teaches students how to identify the key decision-makers for their products or services. “This course is especially good for companies just starting to target apartment communities,” Sculthorpe says. “It also helps prepare people who plan to move on to pursue the CAS designation because it introduces them to topics such as fair housing that is also covered in the designation coursework.” While the course provides an overview of the apartment industry, it is still helpful to supplier partners who have a background working in multifamily housing and decide to make the move to a career as a supplier partner. Even suppliers who started their apartment career in leasing, maintenance or management, before making the move to a supplier organization, may still lack knowledge about certain aspects of the apartment industry. Ultimately, Supplier Success will be a prerequisite for CAS that is offered by NAA state and local associations. Supplier Success (as it becomes available) may be found at http://www.naahq.org/education or by emailing shana@naahq.org. To find a CAS course in your area, visit: http://www. naahq.org/education/designationprograms/CAS/ Pages/CASCourselist.aspx. Maureen Lambe, CAE, is Executive Vice President of NAAEI. She can be reached at 703/797-0601 or maureen@naahq.org.
40 | March/April 2012 | www.saaaonline.org | The RESIDENCE
independentrentalowners
A NEW OPTION
for appraisal appeals
By David Mintz, CAE, TAA Vice President of Government Affairs
Thanks to a pilot project established by the Texas Legislature in 2009, commercial property owners with properties valued at more than $1 million can have their cases heard by a state administrative law judge from the State Office of Administrative Hearings (SOAH) rather than having to go to the courthouse when they disagree with an Appraisal Review Board’s findings. This process can take less than half the time at considerably less expense than a court proceeding. Originally limited to six counties, the pilot project was expanded in 2011 so that it now covers many of the state’s major metropolitan areas, including Bexar, Cameron, Collin, El Paso, Fort Bend, Harris, Montgomery, Nueces, Tarrant and Travis counties. Although the program is not quite two years old, so far 84 appeals have been heard by administrative judges, and statistics indicate that more than half the total cases have been heard in Harris County. While appraisal districts have won the majority of cases that have gone through the entire process, about half the cases filed in 2011 settled before going to hearing. Although there isn’t any data on the cases that have settled, anecdotally it appears that many of these cases have been decided in the property owner’s favor. The pilot program is currently scheduled to run through the end of the 2013 tax year, but its main legislative champion, Rep. John Otto (R-Dayton), hopes to make the program permanent and expand its scope statewide.
TAA spoke with Otto recently regarding this new process: Q: What originally led you to introduce this legislation? A: In developing the SOAH hearings legislation, I wanted property owners with property in excess of $1 million in value to have an option after the Appraisal Review Board (ARB) hearing that was less expensive than district court, similar to the arbitration process that is available for property owners with property less than $1 million in value. Most of the complaints we heard when I chaired the Select Committee on Property Tax Relief and Appraisal Reform was the treatment at ARBs. Since SOAH was conducting hearings on other types of tax issues in the state, I determined that if I specified the type of appraisal education and training administrative law judges must have to hear a case, then over time a good appeals process should develop. The other benefit would be decisions that could be used in training ARB members. Q: What do you think the prospects are for either extending or expanding the pilot project in the 2013 legislative session? A: Based on the results thus far, I believe there is a good possibility of expanding the SOAH hearings statewide in 2013.
of attorney’s fees if the property owner is successful. I was advised that many attorneys were steering their clients to district court because the award of attorney’s fees could be a negotiated item in reaching a settlement with the appraisal district. So, we decided for the next two years to allow for that same type of recovery and see if it has an impact on the number of cases taken to SOAH. I believe the financial risks are smaller for a SOAH hearing compared to district court, and over time, I believe the SOAH judges will develop more expertise in deciding these cases. Q: Has the program met your expectations? A: The program did not have the total number of cases we expected in the first two years, but we received some good feedback as to what was happening (e.g. the issue of attorney’s fees being recoverable) and were able to make some changes last session. Some of the cases originally filed were settled before they ever got to full hearings, so we really don’t know whether that would have happened without the option for the SOAH hearing. We don’t know whether the property owner in those cases would have gone to district court if the SOAH hearing had not been available. That decision is driven, I’m sure, by a cost/benefit analysis. Is the potential savings in property taxes in this year and future years enough to justify the financial costs to appeal?
Q: What do you think are some of the reasons why property owners should take their cases to SOAH rather than court? A: One of the big changes we made last session was to allow for the The recovery I believe the SOAH appeal offers a |less RESIDENCE | www.saaaonline.org | March/April 2012 41
independentrentalowners expensive alternative and, therefore, would qualify more property for an appeal of the ARB based on that cost/ benefit analysis.
FREQUENTLY ASKED QUESTIONS: Q: How long does the pilot project run? A: The pilot project continues through the end of the 2013 tax year (December 31, 2013). Q: What counties are covered under the pilot project? A: Bexar, Cameron, El Paso, Harris, Tarrant and Travis Counties have been part of the pilot project since the beginning of the January 1, 2010 tax year. Properties located in Collin, Denton, Fort Bend, Montgomery and Nueces Counties were added to the program for a two-year period beginning with the January 1, 2012 tax year. Q: How does an owner file an appeal? A: To appeal an appraisal review board order, a property owner must file
a notice of appeal and make a $1,500 deposit payable to SOAH with the chief appraiser of the appraisal district. Forms are available from local appraisal districts participating in the pilot program or on the SOAH website www.soah.state.tx.us. Q: When does the notice have to be filed? A: The notice of appeal must be filed with the chief appraiser no later than the 30th day after the date the property owner receives notice of the order. Q: When does the deposit have to be paid? A: The deposit must be filed with the chief appraiser no later than the 90th day after the date the property owner receives notice of the order. Q: Is the deposit refundable? A: Yes. The deposit, minus the $300 filing fee, is refundable if the property owner and the appraisal district settle before the appeal is heard. If the property owner
42 | March/April 2012 | www.saaaonline.org | The RESIDENCE
and the appraisal district settle after the appeal is heard, the deposit is still refundable, but the filing fee and office’s costs will be deducted. Q: What happens if an owner fails to pay the deposit? A: The appeal will be dismissed, and the property owner may not file an appeal to SOAH subsequent tax year. Q: How long does an appeal take? A: SOAH Administrative hearings are typically held within 30 days of the notice being filed. The hearing itself generally takes a few hours. Q: Does an owner need to be represented by an attorney? A: No, the owner may be selfrepresented or may use an agent, such as a property tax consultant. Under changes made in the legislature in 2011, an owner who successfully appeals can receive attorney’s fees.
independentrentalowners POST ADMINISTRATIVE APPEALS: What are my Property Tax Options?
By Tim Parma, Senior Property Tax Consultant Ad Valorem Specialists L.L.C.
In addition to the SOAH hearings, especially when they may not be the best choice, a property owner does have other options when attempting to seek relief from their property tax assessment. As with SOAH, there are advantages and disadvantages to these options. Property Valued over $1,000,000: SOAH OR DISTRICT COURT Property Valued AT $1,000,000 or Less (and all single family homesteads): ARBITRATION When SOAH is not your choice: ARBITRATION This alternative is only available for properties with final values (as set by the Appraisal Review Board) of $1,000,000 or less and all single family residential homesteads regardless of value. For these property types this is the best alternative for seeking additional relief from the review board decision. For a $250.00 deposit, a property owner may present their evidence to an independent arbitrator. Advantages: • Low cost, resolution within approximately 120 days of case being filed, • No attorney’s required for any part of the process, • If property owner “wins” the case (final value of arbitrator is closer to property owner’s requested value than district’s) then $225.00 of the $250.00 deposit is refunded. Disadvantages: • Only 45 days to file from date owner receives certified board order, • Several deadlines with respect to presenting evidence prior to hearing must be met; • Decision of arbitrator is final and cannot be appealed. DISTRICT COURT For properties with final values that do not qualify for arbitration. An owner has 60 days from receipt of certified board order to file suit in district court. Advantages: • Legal representation throughout the entire process, • Opportunity to resolve the case with the appraisal district prior to actually going to trial thereby reducing the costs to the property owner, SOME of the attorney’s fees may be recoverable at the end of the process (recoverable fees limited based on amount of tax savings) • Right to appeal any decision by the court to a higher court. Disadvantages: • Minimum attorney’s cost usually start around $5,000 and go up from there • Process can take as long as three years or more to resolve the case and involve multiple tax years, • Attorney’s must be involved in each step of the process. If the case is not resolved prior to trial, legal fees can quickly hit $40,000 to $50,000 and possibly more depending on complexity of the case. For more information on all of your property tax options plan on attending the free “Nuts and Bolts of Protesting Your Property Taxes”
seminar on Thursday May 10, 2012 from 6:30 p.m. to 9:00 p.m. This free seminar includes networking mixer after the presentation. For more information see page 44. The RESIDENCE | www.saaaonline.org | March/April 2012 | 43
independentrentalowners
Landlord 101: For Independent Rental Owners The Nuts & Bolts of Protesting Your Property Taxes If you aren’t protesting your property taxes every year, you should be! Marc Ross will be speaking about self-protested property taxes and Tim Parma will be speaking about using a professional to protest your property taxes. They will help you determine which method will work best for your business.
May 10th – 6:30 p.m. SAAA Education Center • 7525 Babcock Road
FREE EVENT! Topic: Property Tax Protests Speakers: Marc Ross, Bob Ross Realty and Tim Parma, Ad Valorem Specialists Stay for the mixer afterwards! RSVP to Jennifer at jennifer@saaaonline.org by May 4, 2012
44 | March/April 2012 | www.saaaonline.org | The RESIDENCE
David Fritsche Law Offices of R. David Fritsche
legalupdate
WHEN A TENANT FILES BANKRUPTCY: THE BASICS This Article addresses the issues surrounding the bankruptcy of a tenant in three sections. The first section provides you an overview of the impact upon your practice of the tenant filing a petition for relief in bankruptcy. The second section discusses the various documents you receive and the actions you may take to protect your interests. The third section considers the various fact scenarios which may exist and explains the actions you must take to protect your interests. When a tenant files bankruptcy, many creditors just “give up;” this article explains that you have certain new opportunities to obtain payment and that you should not pass up those opportunities – some of the actions are very simple to take and protect your interests. I. The Petition For Relief. When a tenant, or former tenant (who owes you money), files a petition for relief under Chapter 7, Chapter 11 or Chapter 13 of the Bankruptcy Code, an “automatic stay” goes into effect; in bankruptcy, the “tenant” is referred to as the “Debtor.” The “stay” prevents you from taking any action to collect any sums due and owing to you as of the date the petition for relief was filed; this includes, but is not limited to, delivering notices to vacate for nonpayment of rent, exercising a landlord’s lien, delivering notices of intent to change the locks, changing the locks, delivering correspondence demanding money, most filings for eviction and the like. In very limited circumstances, you may proceed with an eviction after a petition for relief is filed; this will be discussed further below. II.
The Components of the Case and Your Response. 1. Notice of Bankruptcy Filing (the “Notice”). After the Debtor files the petition for relief, you should receive a notice of the filing from the Clerk of the Bankruptcy Court. “Should” is emphasized as only those creditors who are listed by the Debtor in the Debtor’s bankruptcy schedules will receive notices; consequently, if the Debtor forgets or
ails to include you in the Schedules filed with the Bankruptcy Court, you will not receive the Notice. The Notice will include several key dates: a. Date of filing. The date the Debtor filed bankruptcy is critical as it becomes the trigger point for the rights you have as a creditor under the Bankruptcy Code. “Pre-Petition” means everything that accrued prior to the date of the filing; “Post-Petition” means everything on the date of filing and thereafter. b. §341 Meeting. The §341 Meeting is an opportunity for any creditor, including you, to appear at a formal hearing conducted by the U.S. Trustee with the Debtor placed under oath and having to answer questions. At this meeting, you may question the Debtor about the Debtor’s intent to stay in their apartment, assume or reject the Lease and the Debtor’s intentions for maintaining current rent payments Post-Petition. You must also assert an objection to confirmation of the Debtor’s Plan on or before this date. An objection to the Plan is your statement to the Bankruptcy Court that you do not believe that the Debtor’s “plan” to pay off your debt complies with the Debtor’s duties under the Bankruptcy Code. c. Deadline to file Proof of Claim. This is the last date on which you may file a Proof of Claim without leave of Court; proofs of claim are important as they establish your right to payment for all of the Pre-Petition debt accrued by the tenant and may give you the right to collect that debt. d. Deadline to Object to Confirmation. In the Western District of Texas the deadline to object to confirmation is at or before the §341 Meeting; then, your objection must also be reduced to writing and filed within 10 days of the §341 meeting. The RESIDENCE | www.saaaonline.org | March/April 2012 | 45
legalupdate 2. The Proof of Claim (“POC”). The Proof of Claim is a document which must be filed with the Bankruptcy Clerk and served on the Debtor’s Attorney and Trustee to establish both Pre-Petition and Post-Petition amounts due and owing to you; a copy of the Proof of Claim for you to complete and file is mailed to you with the Notice of the Bankruptcy filing. You must aggregate all Pre-Petition amounts due and owing to establish the non-priority claim the Debtor will have to pay to you pro rata under the Debtor’s Plan; include in this amount all rents, fees, NSF charges and other amounts contractually due and owing and which became due Pre-Petition and up to the date the tenant filed bankruptcy. Any amounts that accrue should be entitled to priority status under 11 U.S.C. §507; you have a priority claim for these amounts and are entitled to payment of these sums before other creditors. In a Chapter 7 filing, you may be instructed not to file a proof of claim if there are no assets available for distribution after liquidation. 3. The Motion for Relief from Stay (“MRS”). A Motion for Relief from Stay must filed with the Bankruptcy Court by an attorney to request that the Bankruptcy Court lift the automatic “stay” imposed by the Debtor’s bankruptcy filing to allow you to evict a tenant; in most circumstances, an MRS may only be filed when a tenant defaults under the lease after they filed bankruptcy. In most circumstances you must obtain Bankruptcy Court permission through a MRS to take action against the Debtor after the Debtor has filed Bankruptcy. The MRS advises the Bankruptcy Court that the Debtor has defaulted under the Lease and that you are requesting that the Bankruptcy Court “lift” the automatic stay so you may exercise all of your statutory and contractual remedies under the terms of the Lease and the Texas Property Code. The first hearing on a MRS will be within thirty days of filing of the MRS; consequently, it is imperative that you advise your counsel of a tenant’s PostPetition default under the Lease as soon as possible so that the process may begin. The MRS is also used in certain circumstances when the Resident files Bankruptcy after you deliver a Notice to Vacate or file an eviction; this will be discussed more fully below.
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4. Objection to Confirmation of the Plan (“Objection”). The Debtor should schedule the Pre-Petition debt owed to you for pro rata payout during the life of the Plan; sometimes, this period can be up to five years. It is manifestly unreasonable for the Debtor to claim a debt incurred under a six or twelve month contract and pay it out over a five year period. In this regard, you may have your attorney file an Objection to confirmation to require that the Debtor pay the debt owing over a shorter time span. This is especially important if the Debtor wants to assume the lease as the Bankruptcy Code provides that the Debtor must cure the defaults in any executor (lease) contract or provide reasonable assurances of cure. 5. Motion to Pay Administrative Claim “MPAC”). This Motion is filed to have the Debtor pay your priority claim (for Post-Petition debt). Unless the Debtor voluntarily amends the Plan to provide for payment of your priority claim, you will have to file an MPAC to receive payment of the claim. III. Practical Application. The following are the various fact scenarios which may occur when an existing resident or a prior resident files bankruptcy. This section is divided into collection of amounts due (handled with the Proof of Claim and objection process) and, obtaining possession of the Apartment. a. Collecting Amounts Due. Fact Scenario One. Resident vacates the Apartment with amounts due and owing, then files bankruptcy. • File POC for all Pre-Petition Debt. • File objection if Debtor has payout for more than one year in their plan. Fact Scenario Two. Resident files bankruptcy while residing in your property. • File POC for all Pre-Petition Debt, if any. • File POC for all Post-Petition Debt, amend POC for Post-Petition Debt as additional amounts accrue. • File objection if Debtor has payout for more than one year in their plan. • File MPAC, if necessary.
legalupdate • If tenant defaults under the Lease after filing bankruptcy, file MRS. b. Obtaining Possession of the Apartment. Obtaining possession of the Apartment can be complicated. Depending on the position of the Justice of the Peace in your Precinct, some Justices of the Peace will allow a suit for possession to proceed when the NTV was delivered Pre-Petition, some Justices will not; in those cases where the Justice of the Peace will allow allow you to proceed, you will only be allowed to obtain a Judgment for Possession only. In circumstances where the Debtor’s counsel is sophisticated, you are likely to be threatened with a Motion for Contempt for violating the automatic stay if you attempt to serve a forcible detainer action or a writ of possession upon the Debtor PostPetition. Consequently, you and your counsel should carefully consider the propriety of proceeding with a Bankruptcy Court Order to file or continue the prosecution of a forcible detainer action to dispossess someone from the Apartment after a bankruptcy has been filed. Fact Scenario Three. Resident is current on rent and other charges, files bankruptcy. • After the first default under the Lease Post-Petition, file MRS. • You may only take action to file an FED or take other statutory or contractual action to collect from the Resident after you have received the order from the court on the MRS. Fact Scenario Four. Resident files bankruptcy after you serve NTV but before FED filed. • Carefully consider Debtor and Justice of the Peace, attempt to obtain judgment for only possession (no rent) to see if the Debtor will just leave, otherwise, file MRS; then, you may only continue the prosecution of the FED after you have received the order on
the MRS from the Bankruptcy Court. Fact Scenario Five. Resident files bankruptcy after you serve NTV but before a writ of possession (after an FED judgment becomes final) is served. • Determine the sophistication level of Debtor and Debtor’s counsel and your Justice of the Peace’s position concerning imposition of automatic stay; at the § 341 meeting, determine if the Debtor will just move, otherwise, if you are threatened with contempt, file MRS. •You may only continue the prosecution of the FED after you have received the order on the MRS from the Bankruptcy Court. Fact Scenario Six. Resident files bankruptcy after you have a writ of possession served on the Debtor. • You win. A tenant filing bankruptcy is always a problem; however, if you act promptly to file your proof of claim and a motion for relief from stay or an objection to the confirmation of the Debtor’s plan, you will greatly minimize the effect that bankruptcy has on your bottom line. Because of the penalties for violation of the automatic stay which may be imposed by the Bankruptcy Court against you in all bankruptcy matters, you should never proceed with any action against the Debtor unless you have determined that your actions will not violate the automatic stay.
© 2012 R. David Fritsche Law Offices of R. David Fritsche does not intend for the information contained in this article to be a substitute for legal advice; you should obtain counsel from your attorney regarding the information contained herein. David is an attorney with The Law Offices of R. David Fritsche, General Counsel to the San Antonio Apartment Association, Inc., and engages in the practice of landlord/tenant law and civil litigation. He can be reached at (210) 227-2726, facsimile (210) 227-5550, e-mail david@lawordf.com.
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GutterTime Rick Harris 3303 Tree Grove San Antonio, TX 78247 (210) 488-7596 guttertimesa.com Schlage Mark Howell 12913 Water Wheel Austin, TX 78729 (512) 563-1977 schlage.com Squared Away Construction Inc. Justin Morgan 1323 Slumber Pass San Antonio, TX 78260 (210) 878-5038
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governmentaffairsupdate
Teri Bilby
Director of Government Relations
WHEN IS THE RENT OBLIGATION SATISFIED?
THEFTS OF RENT PAYMENTS By Wendy R. Wilson, TAA General Counsel
A
recent rash of rent drop-box thefts at apartment communities in some parts of Texas, including the Houston, San Antonio and Victoria areas, has prompted a number of questions from rental owners. Although this is not the first time the apartment industry has experienced this problem, it is a good opportunity to remind owners and managers about the legal and practical options available if such an event occurs on one of your properties.
EVALUATE SECURITY If you allow residents to pay the rent using a rent drop box, you should first evaluate the security of the drop box or other place that you use for residents to drop their rent payments after office hours. There are many products available on the market that claim to be tamper proof; however, the reality is that thieves are not likely to be deterred easily. In fact, there have been reports from apartment owners that drop boxes have been ripped out of brick and mortar walls with thieves absconding with the entire drop box! For those rental owners who become victims of rent drop-box theft, questions will abound as you deal with the aftermath of the crime. 50 | March/April 2012 | www.saaaonline.org | The RESIDENCE
Some rental owners conclude that because they did not receive the rent in hand, the resident has not paid the rent according to the lease terms. However, this is incorrect. If a resident pays rent by check or money order and places it in the rent drop box at the apartment community, the check or money owner is considered delivered when the resident transfers the possession to the owner by depositing in the rent drop box. HANDLING STOLEN OR LOST RENT PAYMENTS Although a rental owner has legal recourse against a resident’s bank if the bank pays the stolen check or money order due to a fraudulent endorsement, the fastest way for an owner to get the rent money may be to work with the resident before the thieves have the opportunity to negotiate the stolen checks or money orders. As a practical matter, a rental owner should use common sense when dealing with residents and the fallout following a rent drop box theft. After notifying residents of the incident and identifying those whose rent payments have not been received, try to enlist the help and cooperation of the resident. Many owners have reported success in asking a resident to contact his or her bank to request a stop payment on the check and offering to pay the resident for the incurred fee. While reimbursing residents for stop-payment fees is an unexpected and undesirable expense, it is likely to be the least expensive and quickest option for rental owners to get rent money. In most cases, residents are likely to cooperate and the issue can be resolved easily. In situations where a resident used a money order to pay the rent, make a similar request of the resident, asking him or her contact the money order issuer to reissue it and offering to pay for any reissuance fee.
governmentaffairsupdate Of course, the situation gets problematic if a resident refuses to cooperate in stopping payment on the stolen check and reissuing it or, in the case of a money order, seeking a reissuance or reimbursement from the issuer. Without a resident’s cooperation, the rental owner is unable to determine if the check/money order has been cashed by the thieves. Most significantly, the owner is left without a resident’s rent and uncertain whether the resident, in fact, deposited the rent check or money order in the rent drop box. If this scenario unfolds, the rental owner must decide whether to pursue an eviction for non-payment of rent or to suffer the loss. DECISION TO FILE EVICTION If an owner decides to file an eviction suit against the resident, there is always the possibility that the court will determine that the evidence supports the resident’s contention that the rent check was deposited (received by owner) when the resident placed the payment in the owner’s rent drop box and, therefore, the resident has satisfied his or her rent obligation. The owner, of course, will contend that there is no conclusive evidence that the resident deposited the rent check in the box. The owner will also testify the resident was asked to provide information showing that the check cleared the resident’s bank account or, alternatively, that the owner offered to pay the resident’s stop payment fee, but the resident did not cooperate.
decide that the resident did not satisfy his or her contractual obligation under the lease and award the owner the unpaid rent. Because of the uncertainty of a court’s decision in these types of circumstances, owners may want to do more to prevent these types of thefts. It may be prudent and worth the additional cost for owners who continue giving residents the option to pay rent via drop boxes to extend office hours or employ staff to monitor the drop box on the first few days of the month. Rental owners may also want to consider revising their community policies regarding the use of a rent drop box. An owner could state that the drop box is merely provided as a convenience to the resident and that the resident bears any risk of loss associated with theft of payment placed in the box. While there is no certainty that a court would uphold and enforce such a provision, it could be helpful in some circumstances. Bottom line, rental owners would be well advised to take as many preventive actions as possible if using rent drop boxes, because legal remedies available after a theft are expensive and don’t guarantee that a rental owner will recover the lost rent. Reprinted with permission from the February 2012 issue of TAA News & Views, the official newsletter of the Texas Apartment Association. Copyright 2012, Texas Apartment Association. All rights reserved.
Unfortunately, there are no guarantees what the outcome will be, because the facts of a particular case will dictate a court’s decision. However, because payment is considered a defense in an eviction for non-payment of rent case, the resident will be required to present sufficient evidence to demonstrate that payment was made. Unless the resident is able to offer credible evidence or testimony, the court may
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WHAT IS A PAC? The Political Action Committee (“PAC”) works on behalf of San Antonio Apartment Association (“SAAA”) members. Our PAC works to develop and maintain productive relationships with key public officials at the local, state, and national levels. We are successful when we have active dialogue with public policy makers in order to ensure that legislation is favorable to our industry. Legislation can begin at every level of government and can have a significant impact on the bottom line of your business and on your daily work environment. A misconception exists that legislation exclusively impacts property and management company owners. The reality is that it has a global and direct impact on each of us in the industry. When a company’s bottom line is impacted it affects: employee benefits, financial decisions related to a property’s expenses, and the community at-large. The PAC fund must grow to achieve our goals. By law, the fund can only come from personal contributions. One thing is clear: a direct correlation exists between the strength of our PAC fund and our ability to effect positive change for our business environment. SAAA has several vehicles for your PAC participation: the PAC Golf Tournament, the Business Exchange, and Future of the Industry Fund (“Future Fund”). Future Fund contributions start as low as $29 and credit card payment arrangements can be made on a monthly, quarterly or annual basis to suit your needs.
IT’S YOUR FUTURE, PROTECT IT. Take action, get involved and make your contribution to the SAAA PAC today. Contact Teri Bilby at 210.692.7797 or teri@saaaonline.org for more information.
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marketinginformation The 4 Common Denominators to
SUCCESSFUL MARKETING
By Christine Dunn
If you ride the subway in New York City, you’ll see postings by
Google Inc., among the usual ads for secondary education and other services. Same thing in the New York Times. Google, which operates the world’s most-used search engine, buys ads and uses puzzles or questions in those ads to direct readers to searches for the answers. “Who would ever have thought that Google would advertise in a newspaper?” asks Ron Volper, PhD and author of Up Your Sales in a Down Market: 20 Strategies From Top-Performing Salespeople to Win Over Cautious Customers. But in today’s market, that’s exactly what Google should be doing, according to Volper, a business development and sales consultant who says he has helped 87 of the Fortune 500 companies improve profitability and market share. Buying behavior in both the B2B and B2C space has dramatically, and permanently, changed, yet 75 percent of companies are still selling their products in a way that no longer works, he said. “The companies that are surviving and thriving are the ones that advertise and market more, both in high tech through the Internet, and in “high-touch,” sending direct mail pieces and so on,” Volper said. “The ones that are really successful have one support and feed into the other.” Prior to 2008, customers required five touches (or contacts) to make a buying decision. Today, they require eight. The recent recession is partly responsible for that shift: More decisions are being made by senior managers or buying committees — as opposed to first-line and middle managers. Customers, both commercial and consumer, are less loyal and have cut back on purchases while seeking more proof of return on investment (ROI) for a product or service. “When companies target their products, they need to pinpoint the decision-makers more,” Volper said. “They need to pitch to a more senior-level person, and not pitch the bells and whistles of a product but how it will meet a real need, solve a real problem, and prove it.”
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in a Down Economy The proliferation of information on the Internet has also contributed to the need for more contact. “It’s a double-edged sword,” Volper said. While buyers have the ability to research and learn about a product or service in depth, in some cases they find they need more advice because there’s almost too much information and they find it hard to cut through the clutter. “The people offering the products and services often don’t recognize that what the consumer or decision maker needs is advice and education,” Volper said, a cornerstone of any solid content marketing initiative. “They are leading with price when they need to be talking about value and the return on investment.” Volper said his research also shows that the majority of companies that are successful in a down market — as measured by meeting and exceeding their revenue and earnings goals, as well as capturing marketing share – have the following common denominators: 1. They have not cut their advertising and marketing budgets 2. They have not cut their sales team 3. They have cut fewer employees than their competitors 4. They have added more value to their products and services, but have resisted cutting price Since it takes more to convince consumers at either the B2B or B2C level to purchase, marketing becomes a key differentiator. The tough economy makes it easier to find deals on advertising, so it’s worth taking advantage of media discounts, Volper said.
Author: Christine Dunn Christine Dunn has almost two decades of experience writing about finance and business issues. As founder and president of Savoir Media, she works with companies and executives on developing strategic, integrated media and marketing programs. Prior to starting her awardwinning company, she worked at Bloomberg News, where she served as Boston Bureau Chief and ran industry coverage for several national teams of reporters, including consumer/retail, mutual funds and education. She also authors “Dollar for Dollar,” the personal finance blog on The Boston Globe’s Boston. com website. Follow her on Facebook www.facebook. com/ChristineODunn or on Twitter @ChristineODunn.
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The
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San Antonio Apartment Association Magazine
March/April 2012
In This Issue... • The Four Common Denominators to Successful Marketing in A Down Economy • The Goal to Learn • Supervisors Find NAAEI Designation Program Worth Time & Money • March is Red Cross Month • CPS Energy Offers Energy Savings Solutions for 2012 • NAAEI Promotes Apartment Supplier Career Path • A New Option for Appraisal Appeals
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