I believe we have created our own issue with residents asking for discounts due to amenities not being available.

OPINION: I believe we have created our own issue with residents asking for discounts due to amenities not being available. We always tell our residents that the amenities are 'included' and even suggest things like "you can save money by dropping your fitness center membership and use our fitness center instead".
I'm not saying the residents are correct in asking for the discount. I'm saying we've set ourselves up for this as an industry. Moving forward, after this pandemic, I think we need to be more careful in how we present our amenity spaces.
I fully realize this may be an unpopular opinion, however, I think it should provide food for thought on how we do business going forward.
Love to hear your thoughts. (Again, not being negative; just want to move the conversation forward on this issue).

Agreed! We cant have it both ways. We are trying to add value by creating virtual and outside social distancing activities. At least let our residents know that we are there for them! Just our approach. Happy Tuesday ????

This brings up a good point.
If they pay for a gym elsewhere it would be closed to though.

Shannon Fletcher Bellar But they wouldn't be paying for it at the moment, so the thought is, "if I can't use the gym, then I shouldn't have to be 'paying' for it."

Agreed. But my gym has stopped billing me. Again, we just need to look at how we present our amenities when we are talking to our customers.

I suppose those with amenities fees are having a really hard time. Thankfully, our residents have been really understanding.

Marc Alaia agreed, we don’t charge amenities fees

Lisa Trosien maybe instead of saying “included” in the rent... we can word it like “all amenities are complimentary”. There are many different ways to spin it if we get creative.

Shannon Fletcher Bellar , I like THAT.

So much needs reconsideration - not that we change everything, but at least be intentional about the things kept the same. ????????

Good point, Jonathan!

I’m not sure being careful about how you word it so that you don’t set and expectations that you can’t wiggle out of later is the right way. That seems a bit slimy.
At the end of the day there was a capital expense for the amenity and there was an expectation of increased revenue that the builder/owner had. It should be fairly easy to evaluate what that is in your given market and appropriately compensate your tenants for not providing the value that you originally sold them.
The downside it might not be that much in which case is a great time to evaluate the effectiveness of the amenity and if they are even worth the added maintenance and operational cost moving forward.

Understood. I am not trying to word anything that gives you wiggle room. I think we just have created our own issue here by the way we market our amenities.

Lisa Trosien that is what I’m saying it is fundamentally about the amenity not how you market it.
If you think the fact that you mention a fitness center enables them to cancel their gym membership you are missing the point entirely. It has nothing to do with marketing unless you completely hide the amenities and after they are all done signing the lease you say: “surprise!! Here are some great value adds that you had no clue you were getting before.”

My honest opinion. The industry has always pushed many “things” as amenities. Every last one is just a way to sell another way to make money. (Full disclosure I sold bulk alarms to get into this biz). Some became staples pools, cable, etc. and some like cable fall out of favor.
Now is the time for management to really figure out what the consumer value is on the amenities. In the long run this can help them understand consumers demand.
Reset time.

Properties with greater amenities can charge higher rent. But we say it's not included in our lease. It seems like we've created our own issue.

Lisa Trosien in not sure you can get more rent just because of some amenities, for example a pool I don’t believe you get higher rent, especially high enough to our way the added cost and expenses.
I have a complex now I’m fighting with my partners NOT to install a pool, the increase you can get on unit upgrades, no need for a pool. The headache and expenses and babysitting a pool comes with is simply not worth it,

Dovid Marasow You definitely get higher rent with more amenities. I am happy to give some data if you like.

Lisa Trosien a small amount yes, but real numbers that outlay the ongoing cost of a pool?? A fitness center has minimal ongoing cost compared to a pool...

I have a property in the Atlanta area with only a playground and outdoor kitchen. No pool, no fitness center, no business center and we're at the top of the market in both rent and occupancy. Amenities may help lease, but having better units and a better staff is more valuable.

Valid point.

Maybe somewhere in the lease we should have our lawyers write in something along the lines of the amenities that we offer are NOT included in the rent; that we reserve the right to close the amenities at any given time; that they are a luxury offered to them, etc.
I know this sounds cold, but it’s a good way to cover our butts.
Also most properties have very poorly equipped gyms, and most people don’t cancel their gym memberships for a poor substitution. ????????
Just my opinion.

Tony Leon I agree with the lease clause but perhaps even calling out the reason for the closure by government order due to resident health and safety. You can’t just close it for a length of time for any reason and expect residents to understand.

Kim Arnold Agreed. I think that all reasonable residents would understand we have no choice in the matter. The health and well-being of our residents and staff is more important than any amenity.

Kim good point!

I have seen some put a value on their amenity area within there lease so it is defined if the amenity is reduced.

Cyndi Pokrzywa good idea!

Cyndi Pokrzywa, my daughter paid a non-refundable 'amenity fee' of $400 when she moved into her current apartment, as did everyone else at her community. It will be interesting to see how this is handled.

Closing the amenities due to a global pandemic, for the health and safety of residents, is very different than closing the amenities for repairs or upgrades. If amenities were not available because of a situation within our control, we would absolutely offer a concession or rent credit. There is an implied value in a portion of the rent that can make the rent for an apartment in a building with amenities more expensive than one without. If you take two identical apartments, with identical staffing and service, in a similar neighborhood, and one has amenities and the other does not, the one with amenities should be more expensive. I believe this has more to do with how we speak to the rationale for closing, than it does to how we market the amenities in the first place. That said, I agree that amenities should be discussed as complimentary because they can be changed, evolve or become inoperable temporarily. There are a number of factors that go into a prospects decision, community amenities can be one of those, but ultimately they are renting an apartment not a fitness center or a swimming pool.

Totally agree. Need to change direction on this one. I am dealing with this subject every day, and find it's sort of like when we used to tell people to "call for specials". That's what they did, and then we couldn't figure out why everyone expected a discount...

I also think we need to refocus on the merits of a lease contract. The amount of people who believe they should simply be able to break a contract with no penalty is astounding. I have been spending a good deal of time trying to help people understand a contract goes both ways, and it is not a bad thing - that it protects them from being thrown out, rent increases, etc. Helping people understand a lease contract is in their best interest is important going forward, as well as, thinking about what lease term is right for them. It may not be the cheapest option, but it saves them money down the road. I also think we need to do a better job educating people on the contract contents, and what that means to them.

Agreed! I always say our amenities are an added feature to our property which we pass on to you (the resident) to enjoy. I never say it is included in your rent.

Management agents/owners also need to be more realistic about their rent levels. However, it might be about developing a more accurate rent level for a particular property? It will be interesting to see once the economy recovers from the CoronaVirus where the rents settle? I suggest that superior management may need not alleviate the need for rent concessions where the property has inferior management services? Develop a realistic rent level associated with superior services being offered and residents will be happier with no need to relocate!

It's been a closing tool for YEARS to offset other expenses by using amenities -- and in this time when amenities are closed...SO IS THE GYM! Remember - sometimes people just want to be heard -- so during this strange time we are in, make sure you are LISTENING--and LISTENING TO HEAR...not just listening to respond. Also remember, there is POWER in your lease, know it inside and out -- be able to explain it to everyone in terms that they can understand -- as you all know, most residents DON'T read their lease! So you need to be their guide through this difficult time...and be sure that when you're communicating policy, you're also using empathy and seeing things from their perspective. My last rant...remember saying "I'm sorry" doesn't mean you're responsible for what's happening, it just means you're sorry they're upset, or lonely, or whatever they may be...and remember...this will be over SOON! Keep the faith and keep your chins up -- you are ALL my #HEROES!

I like saying " all amenities are complimentary"

But all gyms are not afford the luxury of being able to not bill you. Amenities should never be part of the sell of an apartment home. Amenities should be as they are; things that make you feel comfortable while your living in this complex. Convenience is not an expected thing, convenience is a privilege and privileges have never had a price associated with them.

The cost of the apartment home that a tenant is renting is paying for the four walls that they house; if your apartment home can't be sold on that alone then your organization needs to reconsider the monthly rent.

There are many things that are closed that affect the pie chart in your rent, schools, restaurants, hair salons and anything within their area. And, all of those things that I mentioned are amenities.

Okay, I'm done! Sorry for the long reply. Good luck to you all and stay safe!

Hi Lisa,

I completely agree that multifamily needs to start looking at amenities differently. We've been thinking about this a lot over the past couple of weeks as the shelter-in-place orders have been in effect.

The initial challenge will be reopening amenities.
- Is there a plan to do this?
- Are you going to limit the number of simultaneous users?
- How will you keep it fair?

We are launching a solution on May 1st called Amenity Boss: www.amenityboss.com

The initial concept behind Amenity Boss was to create an easy method for management to reopen amenities, but we think the long-term goals are to rethink how amenities are consumed by residents, with things like reservation, etc.

Let me know if you're interested in learning more. Email me here...

Thanks!

We've been in the Residential Management business for 72 years and it never ceases to amaze me how we continually shoot ourselves in the foot trying to "market" our properties without thinking before we say something.
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Also many leases DO NOT properly consider or address the legal implications of offering things like "amenities". Those "simple" short leases are very dangerous.

Just a thought

I don't see it the same way! Our lease is specific that amenities are provided in addition the apartment that they lease. The use of these facilities is at will and no case will an adjustment to rent be made for the use or lack of availability to these amenities.

Suggest a review of your lease to see if it addresses this situaton