Utility Expenses

Utility expenses – such as electricity – can also raise operating costs. Wilkie said the Coller Co. has gone to direct bill; while the meters are still in the Colliers name, the company bills students individually. This helps students understand the costs and consequences of, say, leaving the lights on when they're not in their rooms. Swick, in the meantime, said she's in favor of individual metering. Little also added that, in states in which utilities are regulated, it's a good idea to know those regulations before launching into a utility cost-savings campaign.

Turnover Costs

With Little pointing out that turnover costs are becoming more painful due to rising labor costs (and growing scarcity of labor), the panelists did have some suggestions about how to make this expense less painful.

First, Wilkie said, establish best practices for cleaning, and meet with vendors early in the process. "We're already meeting with vendors for the next school year," he said, adding that background screening not only of vendors, but of those vendors' employees is important.

Swick, in the meantime, suggested that more college students from the area be hired. "The students participating are likely to care a little more because they know they may be there at some point. Or a friend or sibling of them may be there." Then there is the cost. "They're more affordable," Swick commented.

Both Swick and Wilkie are in favor of turnover training of the cleaners, and also creating a "bucket runner" or "sparkle team" to deal with on-the-spot cleaning emergencies. If management has a well-stocked bucket with sponges, cleaner and other cleaning supplies, someone can be dispatched immediately to deal with emergency cleanings. "Having that person go down to the apartment to clean is more efficient than having to go back to the vendor and arrange for someone to come out," Swick said. "And if that person can provide stellar service, it can help boost renewal rates."

Delinquency Rates

The panelists agreed that outstanding customer service is the best way to boost renewal rates. They also noted that outstanding customer service can slow down delinquencies when it comes to paying the monthly rent. "If students don't feel that the managers care about them, the managers won't get the check," Swick said. As such, to decrease delinquency rates, it's important to engage both the students and their parents. "You need to give parents the sense that you care about the child," Swick said. "That'll impact delinquency rates."

Wilkie said Collier Co. goes one step further, and places plaques with names, photos and email addresses of property managers and other staff. "There was some resistance to that from our staff," Wilkie acknowledged wryly. "But it's created good opportunities for communication, good and bad." Stating that he'd rather hear complaints directly from students versus seeing them online on third-party websites such as apartments.com, Wilkie says putting a direct contact name has helped boost engagement with students. "It also gives us a pulse about what's happening with the property," he added.

The RealShare conference series is part of ALM's Real estate Media Group, which also publishes GlobeSt.com and Real Estate Forum