Multi-family Housing: The Brand Experience Part 1
We met Jennifer Carter, VP of Marketing of the Multifamily Media Network, at the Blueprint conference, where commercial and residential real estate businesses shared their perspectives about the multi-family industry’s future and the marketing and technologies behind it.
As we spoke with Carter, we realized that multi-family homes (e.g., apartment complexes, condos, co-ops, and mixed-used developments) had become MULO (multi-location) brands. Management companies like Greystar and Mark Taylor are names that tenants and owners now know, and tremendous and poor experiences with the buildings they manage can significantly impact future lease-ups and sales.
What is a multi-family brand in real estate?”
“In a traditional industry, a brand can be described in three words. Multi-family consumers are not just looking at a brand; they are focused on an experience. When it comes to renters, they are not always seeking out a brand; they are not focused just on the brand. What they are interested in is the experience they will receive. Over the last ten years, our industry has not given the renter a reason to care about the community brand.”
What’s the difference between a building brand, a management company, and an owner?
“Each plays a crucial role in the success of a property. The focus of branding is about perception, reflecting the identity, reputation, and marketing image of a property through the eyes of a renter. Management is about overseeing the operations of a property while addressing the resident’s needs. Lastly, ownership is about investment and asset control. They invest in real estate and generate income from collecting rent via the management company.”
Are consumers confused about who does what?
“They are mostly focused on the experience starting with the properties website, social media and continuing the experience through leasing to becoming a renter.”
What do you see as some of the most successful multi-family brands today? Why?
“Communities that evoke an emotional connection, ones with a human-centric vision. From a national scale or presence, AvalonBay Communities, WRH Realty, and Cortland are great examples. However, in communities throughout the United States, not all properties from one management company are all owned; some are fee-managed, which isn’t enough to drive a brand vision.”
Any predictions for the future of multi-family housing?
“The future of branding in multifamily will continue to evolve, however, our industry must
focus on the renter’s experience first. Then, the brand will follow. Aim to build a reputation for quality service, amenities, and lifestyle experiences that resonate with the needs of various residents.”
What can multi-family leaders learn from other brands?
“Lia Nichole Smith most recently released an Online Renter Study and the study shows over the last ten years, the needle hasn’t moved when renters were asked, ‘Have you ever considered renting at an
apartment community because of the property management company’s brand name?’ The majority of renters (76.1%) do not consider a property management company’s brand when choosing an apartment. The brand of a community is highly considered when you look at regionally-based management companies. Companies that have a central focus in one area are IE: Pillar Properties (West), Saturday Properties (Midwest), and Berger Communities (Northeast).
What is most important to renters is not just the brand. Renters are focused on the quality and consistency of their experience. Brand the experience, not the product. Does their experience create value for living in the community? The experience must be the same in every community, from onsite staff to maintenance to believing in the mission and values.
When renters search for an apartment, most, if not all, are the same: four walls, bedrooms, bathrooms, and a kitchen. The renter is going to spend their money where the experience is. The experience includes leveraging cutting-edge technology, offering smart home features, digital concierge services, app-based resident communication, and exceptional customer service and community within the apartment.
Many aspects outside our industry, such as brand loyalty, are successful due to the quality of service, amenities, and experience. Successful companies outside multifamily are Home Depot, Chick-fil-A, and Target, all of which create a human and emotional experience and exceptional customer experience.”
As in all industries, real estate brands must closely monitor consumer sentiment through their proprietary research, social media chatter, and reviews.
The second part of this article will be about specific things that property owners, real estate technology companies, marketing agencies, and building managers can do to appeal to the new renter or homebuyer.
Real estate will also transform as the consumer population and their needs evolve. Homes are no longer just places where people live. Consumers work, age in place, and build their social (and pet) circles around their living spaces. They sometimes rent those spaces out to strangers to generate income.
Real estate developers and managers need to consider their brands’ long-term visions and learn from other “experience brands.”
Join us at Street Fight LIVE on November 7th to learn about established and new categories in the MULO ecosystem.