October 2021 | Insights From Our Residential Experts – Technology is impacting residential management operations now more than ever. In today’s digital world, consumers are conditioned to receive what they want — instantly. Residential property managers are now required to rethink the leasing process, treating prospects and residents as consumers and catering to the desire of new generations for quick, convenient and on-demand experiences.
RealFoundations’ L5 Customer Lifecycle is a model of the process that repeats each time a resident leases an apartment or renews an existing lease. Simplistically, it can be divided into five segments: List, Look, Lease, Live and Leave. Each segment refers to a certain timeframe during which the resident interacts with the manager’s processes, either in person or, increasingly, digitally.
The Look, Lease and Live phases represent the interactions and activities that happen for a prospect to become a paying resident. These steps have historically been the primary responsibility of the on-site management teams. However, with the technology available to management companies today, the way a prospect navigates through this process has permanently changed.
Ideally, all Look to Live interactions can take place without any involvement from the management team: a prospect only needs a Wi-Fi connection and a single connected device — be it mobile phone, tablet, or laptop. The ‘Airplane Test’ hypothesizes an experience in which a prospective renter boards an airplane from New York to San Francisco and can find, apply for and lease an apartment to move into upon arrival, without interacting with another person — in a single online transaction. This scenario forces us to consider what must occur for that frictionless digital experience, allowing a prospect to self-provision from Look to Live and all points in between. Technology enables today’s renters to make quick ‘shopping cart’ decisions when and where it is convenient for them, shifting the management team’s focus to building successful and enduring experiences with residents.
Look
In this coast-to-coast example, the prospective resident begins using the in-flight Wi-Fi on her mobile phone for an internet search for apartments in the San Franciscan neighborhood of interest. Search results offer various Internet Listings Services and property website options for communities in the chosen area. The website chatbot provides details about the community’s amenities, location, apartments, pricing, and availability, and directs the prospect to virtually tour available units. Browsing through 3D floorplan images and photographs, the prospect selects a furnished apartment that best fits her needs and views the on-demand video tour of the specific unit in which she is interested. So far, so good, and all before the in-flight dinner service.
Lease
When the video tour concludes, the chatbot engages with the prospect again to answer any questions about the community or apartment, and to collect contact information before directing her to complete an online application. As part of the application process, the prospect is asked to take a picture of herself and provide additional photographic identification for ID verification to run a background check. She provides all the information needed to confirm her application, pays the application fee, purchases renter’s insurance, and completes the required digital documents, all through the application portal. Within just a few minutes, the prospect then pays the holding deposit online, is processed for instant screening and receives an approval notification. The final step in the application portal is the electronic lease agreement, which is then executed by mobile phone. Hooray! Next stop is San Francisco, and a new adventure begins.
Live
Shortly after the excitement of signing her lease, the (now) resident receives an invitation to complete a few more tasks before moving into her new apartment home. From the resident portal, the in-flight passenger pays additional security deposits, the balance of the first month’s rent, and sets up recurring payments for future ledger balances. The portal also provides a service to set up any utilities for which she is responsible. The resident spends a little time browsing the portal and is pleased to see the ability to reserve amenities such as a community events room or fitness equipment, submit service requests should the need arise for any maintenance tasks and join social groups and community events to get to know her new neighbors. A year from now, the resident will be able to pop into the portal to renew her lease. Before her flight even lands, she receives electronic keys to access her new community and home, along with a digital guide map providing directions to the front door. Furniture is set to be delivered the same day, allowing the new resident to relax and recover from a long and productive flight. Ah, home sweet home.
Scott Wesson, Chief Digital Officer at UDR, a US REIT and leader in residential innovation adoption, sees the benefit of leaning into the instant gratification consumer mindset. “We’re listening to what prospects want, which is an instant, transparent, on-demand ‘shopping’ experience. UDR uses digital technology to make it easy for prospects to get leasing information and make decisions. With 85% of UDR prospect questions answered by a chatbot and 97% of our tours virtual or self-guided, we can clearly measure success.”
Residential Management is a consumer-based business, in which the landscape is rapidly changing. The Airplane Test envisions a frictionless experience for renters. To maintain a level playing field with peers and gain a competitive edge in the market, view the leasing experience through the eyes of your customer. Start now. Make changes to your operating platform to support the “instant gratification” expectation of today’s renter. Be at the forefront of where digitally-native renters and technology meet, ready to greet residents on their terms.
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Does your residential leasing experience pass ‘The Airplane Test’? Contact us today to help you assess and enhance your digital leasing platform by email or +1 214 292 7000.
