NOW EXPECTING--UPGRADES!!!

I have received 3 calls this week from prospects asking if I had an apartment with "Upgrades."

I wasn't sure what they meant, probably because I am not advertising "upgrades" so I just asked:

"What specific upgrades would you like to see?"

Here is the list:

Hardwood floors
Black appliances
Granite countertops
New light fixtures

Really?????

My rent is about $75 - $100 below a couple of properties in my area offering "upgrades." They are shopping around and this is what they are hearing from other communities. The "upgrade" sales pitch.

How can you compete with that? My competition is convincing prospects they need these upgrades and how do I convince them otherwise?

I haven't raised rent because we don't have these upgrades. I have looked at it, but with a small property and a new owner just taking over we don't have the capitol right now to attempt any of this. We're having to pay out deductibles for the hail damage ($100,000+ damage), which will eat everything for quite a while.

I'm losing customers because I don't have "upgrades" in a market that has several communities offering them.

Is there anyway that you can do some upgraded units? We are doing literally exactly what you described, hard wood floors, new counter tops, new lighting all new appliances in one of our burn buildings, and we are charging $100 above market rate. I was very nervous but they are going QUICK and they aren't even ready!

So, is your new Owner going to re-finanace the property any time soon? I don't know how your Owner is paying out $100,000+ deductible straight up? Does the property have replacement reserves? I'd use some of that money and offer modified upgrades and charge more for those units. Maybe I am being too simplistic?

If upgrades are completely out of the question, I would break it down to what they would be paying for those upgrades. Point out to your resident that they can go to the competition and pay $1200 more a year to upgrade an apartment they don't own.

If a unit is due for a carpet replacement, maybe you can suggest to the resident to pay the difference to replace with hardwood instead of carpet. Maybe even split the cost with them. I expect that would still be less than they would pay over a 12 month term elsewhere.

When you are replacing appliances out of necessity, start replacing with black. They are the same price. If you can't replace all the appliances at once but find yourself replacing a lot of refrigerators, change those to black. Normally your stove and dishwasher have some black and will still look ok next to a black refrigerator. And check if your dishwasher has a reversible panel you can switch to black.

We have also been offering lighting upgrades or countertop resurfacing in lieu of renewal or new move in concessions. Countertop resurfacing can be made to look like granite and is a lot less expensive. Again remind your resident they can get the look of granite without paying for granite they can't take with them when they move.

Good luck. Hope this helps.

Great question! :woohoo:
Differentiate! Don't jump on board with the "standard" upgrades! Market that you offer Vintage for VALUE! That they can have the homogenous apartment home like everyone else, or save money and do their own touches to their home!
There are a few things you CAN do that don't cost a lot...How about instead of marketing upgrades, market CUSTOMIZATION! (TA DAA!) Call your value price the customization discount, and then offer them a choice of CUSTOM ACCENT WALLS (from a palette of colors you ok, or let them go wild). Our painter does it for about $50 per wall including paint, or if you can do it in-house, all you have is paint cost. How about offering them their choice of REMOVABLE WALL ART! (You may not want to call it that...) You can find a kajillion sites with reasonable cost...put together your own "collection" from which they can choose, including the inspiring words for the walls, pictures, etc. One site I've used is www.TrendyWallDesigns.com , but there are a BUNCH.
Knowing you, I bet you know every single detail that distinguishes you from your comps in the area. Can you pick the BEST and make sure EVERY conversation with a prospect includes them?
Hope these ideas help!

PS: 3 calls out of how many total for the week? For the month? (Don't answer...rhetorical here...) Sometimes it FEELS like EVERYONE wants something. And sometimes if there is a big wave of a market request it's a response to a particular ad campaign. You just have to advertise bigger, louder, cooler, FUNNER (yes, I made up that word.)

When I get the "Upgrade" question, I answer with "absolutely!" I don't ask which type of upgrades, but instead tell them about ours. All of our units have ceiling fans, dishwashers, and garbage disposals.

I will also let them know if we have an "upgraded" unit with newer appliances or carpet and a lower priced unit. In my experience, my prospects ALWAYS choose the lower price vs. the upgrades.

You are so right, Rose!

I have 2 units. One with pretty new carpet for $720

The 2nd unit is going to have luxury vinyl plank in the living room and new carpet upstairs for $735.

Everybody wants the one for $720. I've turned down 3 apps, so far, due to credit!!

That should tell me something about the people who are inquiring about them. They want the best price and are willing to compromise when it comes to "upgrades."

My new response for people asking about upgrades:

"My competitor has the same size and style unit with upgrades for $820 per month. Mine is $735. I would love for you to come by and see what we have. I think you'll like what you'll get for a lot less money!!