The near collapse of the global economic system has had a major impact on the lifestyle of the American consumer, who is buying fewer services and goods that were once considered staples of the affluent life.

American consumers have suffered a collective breakdown. They have begun to question their lives and their lifestyles…Do I need that big German car? Do I really need that second house at the beach? Do my kids need to go to that private school? Do I need a new phone or iPod or laptop because it now comes in a cooler color? 

Out of this period of self-denial and personal re-evaluation, a new consumer will be born, the Socially Conscience Consumer or SoCon. SoCons are aware of the world around them and what it means to be self-sufficient—they are consumers who understand that the purchases they make have a profound impact on the world around them, both economically as well as environmentally.

The SoCon will no longer be goaded and coerced by peer pressure or ego-based advertising. He has moved from a consumerism based on flaunting and bragging to one of self-reflection and social responsibility. The battle cry of the SoCon is simple and direct “Do I really need this?”

SoCons will emerge from this economic downturn not as victims, but as survivors. They will feel good about themselves and most of all they will feel good about the future. Like the economic collapse of the 1970s and 1990s, the SoCons will enter into an age of great opportunity and great possibilities.

They will feel empowered and they will have the confidence to take on the future. They will believe in a better tomorrow. And they will focus on what’s good about life, rather than what’s not.

So what is at the “heart” of the Social-Conscious Consumer? To the SoCon it is about lifestyle, it’s not about owning, it’s about living. If stress and anxiety were the bi-products of the post-economic collapse, then nothing will be more coveted by the SoCon than a safe haven to gather and commune with family and friends.

What Are They Looking For?

They look at labels and check out websites and align themselves with those companies that embody their beliefs and values. They are no longer brand loyal, but seek brands that exemplify the new social contract and will hold them accountable.

A word that was once associated with an older generation has become the watch word of the new economy. “Frugality.” Everyone is looking over their collective shoulders, waiting for the other shoe to drop. Will I have my job next year or even next month…my 401 is useless, my savings account is near empty and I have no way to cover tuition for the kids next semester. In other words…every penny counts.

The SoCon has begun to buy store brands at the market as well as cutting and using coupons for the first time. They no longer are looking at cars and phones as a disposable commodity…they are looking and purchasing refurbished phones and other personal electronics as well as pre-owned autos…and even considering public transportation.

The biggest change has been the use of credit cards or better yet the lack of use…the SoCon have lost their need for instant gratification…they are taking their time and pondering their purchase…they have moved from a purchasing reflex of “I want this” to a conscious thought pattern of “Do I really need this.” They are abandoning the credit card to using a debit card or cash or— in a throw back to the 50s—lay-a-way…paying for it over time.

The 7 Characteristics of the SoCon
1.    The SoCons feel that they have too much “stuff.” And that they were prisoners of their possessions and had fallen victim to easy credit and the siren song of mass-consumption. Today they will no longer cave-in to their old buying habits.
2.    The SoCon wants to experience life and not just fill space around them with things. Now every purchase must be weighed and evaluated.
3.    The SoCon is embarrassed by past indiscretions…such as the Hummer or that 10- bedroom summer house for a family of three or the latest…the need to have an iPhone.
4.    To the SoCon, wealth is no longer about things or logos or a brand name…true wealth is about giving back to the community, to the country…to the planet. The things they will purchase today will reflect the social good.
5.    From the clothes they wear, to the coffee they drink, to the car they drive, to the kitchen that defines their home…each purchase must reflect a Social Return on Investment by the company or manufacturer.
6.    The SoCon will use limited resources as a currency of consciousness to leverage a greener and more sustainable tomorrow.
7.    The SoCon believes that the actions of the individual can make a difference.
In Part II, next week, we’ll take a look at marketing to the SoCon.

(Kevin Henry is the executive VP of Bazzèo Kitchen + Bath, as well as writer, speaker and industry activist. He can be reached at kevin@nyloft.net)

We are all familiar with the web and have heard all the stories about young entrepreneurs becoming fabulously rich by building amazing sites and selling products through them. Some examples include Amazon, Zappos, and today’s social media darling Facebook.

Every property is a business and just like any other business you need to promote it. The best and most efficient source to advertise your business is through the Internet. Unlike traditional print advertising, your website need not cost a lot to advertise through. Essentially, your website is a tool to take and use as your advertising vehicle in various sources like Google AdWords, banner ads on popular websites, and through email marketing such as Constant Contact. But if you do not want to spend money to promote your website (which I do not recommend) you have another option. 

You may have heard of the term search engine optimization (SEO). It is the fancy term used by every out of work graphic designer and webpage specialist to try and hook you into paying them big bucks to “optimize” your site. I can tell you from experience that 95% of the people looking to “optimize” your site are not aware of what they are doing.

Your goal should be to build a site that can stand alone by itself and optimize itself. So if you are currently using a template-based system on which your properties site was built upon you’re in trouble.

Three things have to happen for you to have a good site that will be searchable by Google and the other search engines. 1) Domain name 2) Strong keywords inside the pages of your site 3) Receiving backlinks

Let’s look at each of the three points. Let’s assume that your property called Windmill Terrace and it is located in Encino, CA. Let’s also assume that the website to your property is www.wtencino.com . The name of this site is terrible for your property. The reason is because when a potential renter is looking for an apartment on Google they are very committed to a geographic location. What query might a renter queue into Google? How about ‘Encino Apartments’. This search term is highly searched for renters looking to live in Encino, CA. My suggestion for the owners of Windmill Terrace would be to change the domain name of their property to be www.EncinoApartments.com or www.apartmentsencino.com. By doing this the #1 key of importance is satisfied from an SEO perspective: having a searchable domain.

Keywords laced throughout the pages of your site are important. Keywords that are focused on amenities and conditions of the property are important because this is what renters will be queuing into search engines. I recommend that you have a heavily key worded article at the bottom of your home page. When someone types in a phrase in the search bar of Google and your website has several of the words in that phrase or matches it exactly, Google should recognize this and put you more towards the top of the sites they display in your search results. Keywords in the title tags of each of your web pages are essential. The headlines of sites that you read on Google, well those headlines come from the title tags.

Backlinks are a vital component of a good SEO campaign. Essentially heavily laced key worded articles are written (200 to 600 words) and submitted to at least 20 of the top article directory services. Other services then pick up on your article and create what are known as backlinks pointing to your site.
You can do the writing yourself or pay to have it done.
When a term is keyed into Google, it searches all the sites with that term in it. It then categorizes the sites that you see in the results on several factors but one main one happens to be backlinks. If my property’s site has 10,000 backlinks for the term ‘pet friendly’ and my competition has 1,000 for the same term, then my site gets ranked higher.

There is no silver bullet with SEO. I’ve given you some important snapshots. Getting your site ranked high is incredibly important when renters are looking for somewhere to live. You should want your site to be number 1. For fun go to Google and queue in ‘apartment energy consultants’ and see what you get. If you would like assistance with your site and SEO please let us know.

(Scott Yahraus is the president of Apartment Energy Consultants. Apartment Energy Consultants is the governing body that certifies multifamily properties as being “National Green Apartment Certified” visit them at http://www.GreenRetrofitter.com, 818-854-6850, or email Scott directly at Scott@GreenRetrofitter.com)

Individual homeowners are going green in record numbers, but they are not the ones who will be the leaders in the green movement because they are going green slowly. As much as they might want for circumstances to be otherwise, most are not in a position to run out and buy, for instance, a high efficiency clothes washer when the old one is still running just fine. It’s a big expense, and while they will ultimately recoup all of the money from the savings on their water bill, the immediate savings does not justify the price of such a big-ticket item.

And even if they do go for the high efficiency washer, how likely are they to be able to replace all the other items that are wasting energy in their homes during the same time period?

Multi-housing owners and developers, on the other hand, are in a perfect position to realize profits in energy bills very quickly, depending on how many units they are overseeing. In their wildest dreams, many of them may never have thought of themselves as being on the forefront of a movement that, in the beginning at least, was associated with a political ideology. But the opportunity has been handed to them, and many are taking the reins.

One company deserving of recognition for its green leadership is The K & D Group, one of Ohio’s largest privately owned real estate development firms. They own and manage over 13,000 residential units in several apartment communities in the northeast portion of the state. The K & D Group is just about done with a project they began some six months ago to retrofit toilets in 7,500 of their units, mostly in buildings that were 20 to 30 years old. These same units also got new showerheads and aerators on their faucets.

The reason I know so much about The K & D Group project is because the company I work for, Niagara Conservation, supplied the toilets, aerators and showerheads. But that is beside the point (though I would like to mention that our Flapperless toilet is perfect for such retrofits not only because it is water efficient and maintenance free, but also because the base and tank are large enough to cover the old toilet’s footprint).

The point here is that K & D has chosen to overlook the difficulties inherent in such a big project (not the least of which is that residents don’t especially like the interruption of having installers working in their bathrooms) and focus on the bigger picture—and that picture is green, in two senses of the word.
Each one-bathroom household will be saving 9,200 gallons of water per year because of the toilet retrofit alone. K & D expects to save $1.5 million in water costs.

These are amazing numbers to consider. Think about it: There are 100 million toilets in the U.S. that flush at 3.5 gallons or higher, and if just half of these older models were replaced with high-efficiency toilets, 600 billion gallons of water would be saved each year. Thanks to companies like The K & D Group, that kind of savings no longer seems unfathomable.

(Matt Voorhees is the Business Development Representative for Niagara Conservation www.niagaraconservation.com and www.itseasybeinggreen.com)

By and large it has been a bad year for all of us. High tides raise all ships and low tides bring them all down. We’re all riding the crest downward, including your residents. I probably don’t have to remind you of that.

In this month’s issue of Multi-Housing News, Christy Freeland, CEO of Riverstone Residential said, “We know that people like to be social, so we’re offering things like movie and game nights, or bringing in guest speakers on topics like physical fitness. We’re not having to spend a lot of money on those things, but it’s the idea of providing a sense of community that will keep residents around longer.” (MHN, June 2009, pg. 13)

I could not agree more with Freeland. Your residents are your customers, so it is wise that you treat them well. To me, this means going above and beyond giving them a clean and safe place to live. Goodwill goes a tremendously long way.

Recently a client of ours decided that he wanted to host a grand re-opening at his property to market his 43 vacancies. He decided that he wanted a local radio station to attend for two and a half hours and that he would have a raffle drawing. The raffle was for a flat screen TV to be given away as the radio station wrapped up their time on the property.

When asked for our input, we modified his original plan and enhanced the benefits at the margin.
The radio station was given four different pitches to announce how this complex is green, new, convenient, healthy to live in, and safe (the complex is “National Green Apartment Certified” platinum level.)

 The DJ would cycle through those four pitches in succession every time he spoke while announcing that there was an iPod giveaway every half hour. The DJ also mentioned the free burgers and hot dogs that were being served and how easy it was to see the new green property while you ate your free food. 

For the current residents of the property, the management firm announced a week and a half in advance that the ownership was throwing them a party. There would be free catered bar-be-que, as well as an iPod raffle.

For the drive by traffic who weren’t listing to the exact radio station that was broadcasting from the property, we decided to have BBQ smoke chips in a separate grill billowing white smoke up in the air a hundred feet high. We also chose to have very large balloons made up and strung together raising high into the sky. Think of the balloons that you are accustomed to seeing at car dealerships.   

The results of the promotion were nothing less than amazing. The week of the event resulted in 28 new leases! 10 of the leases came as a referral from current residents. The current residents were encouraged to bring their friends and family. Not only did the owner surpass his goal of 20 new leases, he was also able to build a stronger community at his complex. This strength binds the residents together more closely and will “…keep residents around longer,” something Freeland points out as being very important.

(Scott Yahraus is the president of Apartment Energy Consultants. Apartment Energy Consultants is the governing body that certifies multifamily properties as being “National Green Apartment Certified.” Visit them at http://www.GreenRetrofitter.com, or contact Yahraus directly at Scott@GreenRetrofitter.com or 818-854-6850)

It is not a question any more, rather a certainty. Facebook is here to stay. It has become a part of our everyday lives. Once thought to be used only by Generation “Y”, social media has transformed our lives. The largest growing demographic happens to be females 40 years old and above.

If the first phase of the Internet was to get everyone connected, then this second phase of the Internet is about getting the human network connected to each other. I recently heard on NPR (National Public Radio) that the epidemic of workers checking their Facebook pages was the fastest growing problem facing work production for many office employees. An executive at a company decided to embrace his staff’s appetite to socialize over the net just to keep them happy and not disrupt their morale.

Since we know that 200 million people are using Facebook, and growing, there is a strong chance that you tenants are using it too. The question is how do you marry your property to their use?
Each property should have its own Facebook “Fan” page, not a “group” page. You have to push this new page on your residents. I would suggest taping notices on their doors, around the mailboxes, and in laundry facilities reminding the residents to become a fan of their apartment community’s page.

The content that should be posted on your Facebook page should be community notices, partnerships with vendors you make (such as pizza), and communitywide events (such as poker or bunko night). Tenants will want to join to keep up with the news. But you could also use the tool to incentivize and reward your residents. For example, everyone who pays their rent on the 1st of the month before 6:00 pm will receive a free ___________(fill in the blank.) Something of low value like a slurpee from
7-Eleven. Let 7-Eleven pay for the cost of goods sold, you are bringing in customers to them. Or maybe a higher ticket item? See who is in your area that you can partner with.

What makes Facebook so impactful is that whatever you write on your “wall,” all of your friends (in this case your residents) will see it. In short time people are signing up to be your friend and you theirs. The cascade of information to read on each other’s wall grows exponentially because everyone is writing in, commenting, taking surveys, and socializing! This socialization is incredibly important for an apartment community. If a resident feels part of a community because of the relationships they have developed over time, then they are more likely to renew their leases.

A key component to getting your network off the ground is to find a person that Li and Bernoff, author of “Groundswell,” call Creators. In social networking there are several types of participants. Think of a creator as someone who is a social butterfly and knows everything going on in the office. This person is very influential. Find them at your complex and let them participate and spread the word for you. Not everyone is a Creator. There are several different types of observers who may or may not write, post, or blog, but they sure are listening to your message.

Your property manager is best suited to take on this task. It is that person who is rooted in the property and has the best vantage point of what to write on the wall and what to comment on from others’ wall postings. 

Focusing on the relationship with the residents and becoming a part of their lives is unique and can pay large dividends. They will want to refer a friend of theirs to fill your vacancy if they are comfortable with you. Of course you will let them know you have a vacancy to fill on your Facebook page! Utilizing Facebook is a great tool that you could be using right now and costs you nothing but upside.

(Scott Yahraus is the president of Apartment Energy Consultants. Apartment Energy Consultants is the governing body that certifies multifamily properties as being “National Green Apartment Certified.” Viisit the web site at http://www.GreenRetrofitter.com , 818-854-6850, or email Scott directly at Scott@GreenRetrofitter.com)

It is everywhere and all around us! Being “Green”! It is hard to go through the day without seeing some advertisement for a product promoting itself as green. I see this for banks, retailers, and of course car companies. At the footnotes of emails that I receive there is often a message reminding me to “Think of the environment before you print this email.”

If you are anything like me, you subscribe to several trade publications on the apartments industry, as well as the commercial real estate sector in general. This month, a leading apartment magazine ran a cover story questioning the divide between building or retrofitting a property to be “Green” and the cost associated with it.

The most popular certification body that exists is LEED (Leadership in Energy and Environmental Design) certified by the National Green Building Council (NGBC). But they have largely focused on office buildings and within that on new construction. What about multifamily? USGBC has a new residential unit LEED certification, but it is still a work in progress and is very expensive; roughly $1,500 per unit.

If you are an investor or a developer, do you go after this certification? It would depend upon your exit strategy and if in fact an additional charge of $1,500 per unit pencils out. The question really is this: Does the $1,500 per unit drive enough NOI increase and give me a payback of 2.5 years or less? If the answer is “no” then in my humble opinion this certification is not warranted. The argument is made that a LEED certified building will sell for a higher premium. “…CoStar Group reports that LEED-certified office buildings sell at a 36 percent premium-over non-certified buildings.” (Apartment Finance Today. May/June 2009, pg. 21.) Of course they sell at a premium because they attract a higher occupancy than the mean. Tenants are drawn to these types of buildings! Let’s not also forget that many LEED buildings tend to house long-term government tenants! Initial construction or retrofit construction for a LEED certified building can be as much as 15 percent or more of the total cost of development (TCD). 

We know that our multifamily tenants are also drawn to green certified buildings. They are not much different than you or I. From a purely emotional viewpoint wouldn’t you want to live in an efficient “green” building if you were a renter? You need not look any further than the green demand from student housing whose tenants are demanding more green services and amenities. This demand crosses over all age ranges too. From the late economist Jean Baptiste Say (1767-1832) we get Say’s Law stating “Supply creates Demand.” You the developer/investor only need to supply the green certified property, demand will follow. But as a developer/investor would you pay $1,500 a unit or 15 percent of your total cost of development?

A multifamily certification should offer two primary functions:
1) Raise NOI through efficiency retrofits with good payback timeframes.
2) Allow you to emotionally market to tenants so as to fill your vacancies and keep occupancy high. This will also help you in resigning your current tenants to new leases.

That’s it. Cost should be low as well.

The president of UDR, Doug Walker, was quoted in the May/June issue of Apartment Finance Today, page 23 as saying “LEED is the flavor of the day in large part because there was no other flavor to pick from. But I’m not sure LEED is going to be the front runner forever.”

To view another option please click here.

(Scott Yahraus is the president of Apartment Energy Consultants. Apartment Energy Consultants is the governing body that certifies multifamily properties as being “National Green Apartment Certified.” He can be reached at 818-854-6850 or Scott@GreenRetrofitter.com.
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