Marketing to the & s July 2011
Table of Contents Reaching Renters 3 About J Turner Research Which two social media channels do you use most frequently? 4 Objective and Value 4 About the Survey 4 Key Findings 4 Reaching Renters 5 Rental Preferences 5 Demographic Breakdown 6 Reaching Renters 6 Which two social media channels do you use most frequently? 7 Have you ever visited an apartment community s social networking page on Facebook, MySpace, Twitter, LinkedIn, Orkut, etc.? 8 What are the three primary sources you used to find your current apartment community? 9 If you had to choose a single source for your apartment search, which would you choose? 10 Select two of the following responses which best describe word of mouth from your perspective. 11 Rental Selection Criteria 11 What was the most important factor influencing your decision to rent at your community? 11 Price Point 12 Apartment Lifestyle Preferences 12 What three aspects of the Apartment Lifestyle were you looking for in a community? 13 Apartment Lifestyle 14 Communication with the Community 14 How would you prefer the community communicate with you? 15 How would you communicate with the community about a maintenance request or problem? 16 What kind of community sponsored events do you participate in? 17 Amenity, Feature and Service Preferences 17 Friends versus Amenities: If you had to choose between one of the following communities, which would you choose? 18 Which are the five most important common area amenities to you? 19 Which are the five most important apartment amenities to you? 20 Which are the five most important community amenities to you? 2 of 20
About J Turner Research Reaching Renters Which two social media channels do you use most frequently? Based in Houston, J Turner Research specializes in developing and executing innovative and affordable research services for the multifamily industry. The company utilizes email based surveys to accurately measure perceptions of prospects and current residents to optimize operational and marketing efficiencies. With its monthly resident satisfaction trending and real time prospect feedback, J Turner Research provides real time operational intelligence to ownership. J Turner Research also has developed a new social media application which provides frequent, original resident content to property Facebook pages. For more information, please call (281) 558-4840 or visit www.jturnerresearch.com. 3 of 20
Objective and Value Reaching Renters The purpose of this study is to determine the attitudes and views of renters across different generational demographics. With the speed of technology today, there is a schism between Which two how social different media generations channels want do you to use be communicated most frequently? with, what they view as important in their communities, how they view amenities and what determines their decision to rent. The data in this study offers insight about each generation of apartment renter. The survey covered residents from the millennial generation to The Silent, and measures preferences, perspectives and values related to apartment search and rental life. Insights from this study enable operators of apartment communities to target their message and marketing to generational subsets and developers of communities by knowing what prospects are seeking. About the survey This study was presented to an educational session of the National Apartment Association in June 2011. With the help of DEI Communities and Forest City Residential portfolios, a 14-question, email survey was distributed to 12,646 residents at 71 communities nationwide. J Turner Research secured 4,275 responses representing a 33 percent response rate. Some material enclosed is from a two year on-going survey tracking trends in apartment resident use of social networking as well. For the purpose of the survey the population was divided into the following generation demographics: (Ages 18-30) X (Ages 31-44) (Ages 45-65) Silent (Ages 66+) Key Findings The, ages 18-30, dominated with 47 percent of respondents, indicating they are the generation that apartment owners should target in marketing and communications. Reaching Renters Visiting a property s social networking page is becoming more common, especially at properties that are actively engaged in social media. Facebook is the most popular social media channel across all generations. Twitter is a distant second but more popular with the younger generation. Drive-by ranks across all generations as a popular source used to find apartments but is more important to the older generations. Internet marketing is the source least used by the older generation. Craigslist is used by s by a significant margin over s (ages 45-65) and the Silent (ages 66+). Word-of-mouth is the single most important source for the Silent respondents. 4 of 20
Key Findings [cont.] Reaching Renters Rental Preferences The decision to rent is based primarily on location. Price matters less to older survey participants Which by almost two social two to media one. Renters channels in do general you use like most to communicate frequently? by email with the management office. However, they prefer to have more direct contact with the staff (phone and face-to-face) when communicating situations that are important to them, such as maintenance requests and concerns. Regarding common area amenities, fitness center and parking, rank the highest. The top amenity preferences, within the unit, boil down to stainless steel appliances for younger respondents and window coverings for older respondents. There are many common wants and needs among all generations, but it is recognizing the differences between them that can help operators and managers target messages that will appeal to a particular group. There is an opportunity to establish prospect profiles based on this data. Understanding unique audiences enables better marketing strategies for more productive leasing. Demographic Breakdown {Ages 18-30} 47 % X {Ages 31-44} 3 {Ages 45-65} 2 Silent {Ages 66+} 3 % 25 % 5 N = 4,275 5 of 20
Reaching Renters Which two social media channels do you use most frequently? 97.03 % 91.0 83.38 % 73.15 % Facebook 92 % Other 3 LinkedIn 9 % 3 29 % Twitter MySpace X Facebook Usage Silent 5 97 % 91 % 83 % 35.86 % 24.9 18.38 % 21.3 4 73 % 36 % 27 % 34 % Facebook Twitter LinkedIn Facebook 34 % 25 % Twitter LinkedIn X 18 % Facebook is the clear choice among all demographic groups, with Twitter strongest among the younger generations. Facebook Twitter Linked In Facebook 23 % 21 % Twitter Linked In Silent X Twitter Usage Silent 6 of 20
Reaching Renters Have you ever visited an apartment community s social networking page on Facebook, MySpace, Twitter, LinkedIn, Orkut, etc.? Aggregate 2 15 % 5 % 7 % 5 % 6 % 6 % 6 % 6 % 9 % 9 % 7 % 11 % 12 % 12 % 17 16 % % 16 % 15 % 15 % Active Properties* 3 25 % 25 % 23 % 21 % 21 % 23 % 2 18 % 16 % 15 % 12 % 5 % Not Active Properties 2 15 % 5 % 12 % 10 9% % 7 % 6 % 6 % 7 % 5 % 16 % 16 % 14 % 14 % 14 % Jan 2010 Feb 2010 Mar 2010 Apr 2010 May 2010 Jun 2010 Jul 2010 Aug 2010 Sept 2010 Oct 2010 Nov 2010 Dec 2010 Jan 2011 Feb 2011 Mar 2011 Apr 2011 May 2011 Jun 2011 Jul 2011 Aug 2011 *Active Properties are engaged in social media (primarily Facebook and Twitter). Visitors to an apartment community s social networking page are increasing, particularly for highly engaged properties. 7 of 20
Reaching Renters What are the three primary sources you used to find your current apartment community? Internet Search Engines 73 % 11 % 4 % >1 % 12 % Apartment Listing Sites Drive-By/Walk-In Word-of-Mouth Apartment Review Sites Craigslist Apartment Magazines Other Community Website Newspaper Classifieds Smartphone/Mobile Search Facebook 8 56 % 46 % 36 % 22 % 2 16 % 7 % 6 % 4 % 3 % X Silent Craigslist Across Demographics Craigslist has significantly higher following among younger renters, and practically no importance for the Baby Boomers or Silent. All generations except the Silent clearly prefer searching for apartments on the Internet. Drive-by is still important for all generations, but is more important for s and the Silent. 78 % 74 % 68 % 6 63 % 59% % 57% 55 Internet search engines Apartment listing sites 4 45 % 5 43 % Drive-by Internet search engines Apartment listing sites X Drive-by Internet search engines Drive-by Apartment listing sites Drive-by Word of Mouth Apartment listing sites Silent 8 of 20
Reaching Renters If you had to choose a single source for your apartment search, which would you choose? Internet Search Engines Apartment Listing Sites Drive-By/Walk-In Word-of-Mouth Craigslist Apartment Review Sites Apartment Magazines Other Community Website Newspaper Classifieds Smartphone/Mobile Search Facebook 31 % 26 % 9 % 6 % 3 % 2 % 1 % 1 % 1 % 35 % 4 % 31 % 32 % 31 % 28 26 % 26 % Internet search engines Apartment listing sites Internet search engines Apartment listing sites 11 % 14 % Craigslist X Craigslist Internet search engines Apartment listing sites Drive-by 23 % Word of mouth 21 % Internet search engines 17 % Apartment listing sites Silent 9 of 20
46 % 4 4 38 % 3 26 % 24 % 23 % Evolving Resident Demographics Reaching Renters Select two of the following responses which best describe word of mouth from your perspective. A One-on-One Interaction with a Trusted Friend, Colleague or Family Member An Interaction with a Group of Individuals in a Social Setting A One-on-One Interaction with a Person or Acquaintance I Don t Know Very Well Researching Comments and Posts on Websites Featuring Reviews on Products or Services from Individuals I Don t Know An Interaction with a Group of People I am Connected to via Social Media like Facebook or Twitter Information I Gather from Traditional Broadcast and Media Outlets Other 85 % 43 % 27 % 24 % 11 % 8 % 3 % A A One-on-One Interaction with a Trusted Friend, Colleague or Family Member B An Interaction with a Group of Individuals in a Social Setting C A One-on-One Interaction with a Person or Acquaintance I Don t Know Very Well 85 % 85 % 83 % 8 A B C A B C X A B C A B C Silent 10 of 20
Rental Selection Criteria What was the most important factor influencing your decision to rent at your community? Evolving Resident Demographics 22.45 % 17.79 % 12.82 % 17.39 % 3 Location 36 % X Price Point Silent High Quality Apartments/Units Price Point Other Community Amenities Referral from Friend None of the Above 26 % 19 % 6 % 5 % 3 % 2 % Location is the primary decision factor to rent across all demographics, with high quality units ranking as the second determining factor. Price point is less important for s than for any other demographic. Positive Online Reviews about the Community 4 2 % 5 42 % 39 % 33 % 37 % Location 27 % 28% 22 % 25 % 22 % 18 % 13 % 17 % High quality units Price point Location High quality units X Price point Location High quality units Price point Location High quality units Price point Silent 11 of 20
Apartment Lifestyle Preferences What three aspects of the Apartment Lifestyle were you looking for in a community? Location - Proximity to Work or Transportation 61 % Value for Price 46 % Condition and Quality of my Living Space 46 % Quiet Place to Live 45 % Maintenance-free Living (community manages all repairs or issues with my apartment) 33 % Location - Proximity to Restaurants/Bars/Shopping 26 % Location - Proximity to Family and/or Friends Location - Proximity to Schools/Hospitals 9 % Social Activities within a Community 7 % Downsizing Lifestyle from Previous Home Ownership 5 % Other 5 % Opportunity to Meet New People with Similar Interests 4 % Wanted/Needed to Move Out of My Parent s House 3 % 2 4 6 8 12 of 20
Apartment Lifestyle Preferences 6 6 63 % 62 % 56 % 53 % 53 % 49 % 45 % 45 % 43 % 45 % 42 % Location Value for price Condition & quality of my living space Location Value for price X Condition & quality of my living space Location Quiet place to live Maintenance-free living Maintenance-free living Quiet place to live Condition & quality of my living space Silent Apartment Lifestyle: Second Choices 41.18 % 52.7 6 27.26 % 42.84 % Quiet Place to Live Maintenance-free Living Location continues to be an important lifestyle aspect for most demographic categories, however it is of lesser importance for the Silent. A quiet place to live and maintenance-free living move up in importance for older renters. 13 of 20
Communication with the Community How would you prefer the community communicate with you? Letter Outside and/or Under My Apartment Door Email 71 % 12 % Mobile Phone Text Message Landline Phone In-Person Visit Facebook None of the Above Other Community Portal Twitter 8 % 3 % 1 % 1 % 1 % 1 % 1 % 2 4 6 8 A Email B Letter Outside Apartment Door C Mobile Phone D Landline Phone 72 % 74% 67 % 54 % 11 % 11 % 16 % 23% 7 % 6 % 9 % A B C A B C X A B C A B D Silent 14 of 20
Communication with the Community How would you communicate with the community about a maintenance request or problem? Call the Leasing Office 45 % Walk Over to the Leasing Office Email the Leasing Office 18 % 21 % Send a Message Through the Community Portal Other Text the Leasing Office Post your Problem/Complaint on Facebook or an Apartment Review Website 13 % 3 % 1 % 2 4 6 6 44 % 48 % 51 % 43 % 31 % 21 % 21 % 20 17 % 21 % % 16 % 9 % Call Walk over Email Call Walk over Email X Call Walk over Email Call Walk over Email Silent Communication preferences boil down to this, residents want you to communicate with them by email, but they want to communicate with you more directly by phone or face-to-face. 15 of 20
Communication with the Community What kind of community sponsored events do you participate in? I Do Not Participate 56 % Social Mixers 26 % Pool Parties 16 % Movie Night Organized Fitness Classes On-Site Charitable Functions Volunteer Opportunities 9 % 8 % 7 % 2 4 6 6 6 52 % 54% 53 % 28 % 28 % 34 % I do not participate 23 % Social mixers I do not participate I do not participate 17 % 19% 12 % 12 % Pool parties Social mixers X Pool parties Social mixers Pool parties I do not participate Social mixers Organized fitness classes Silent 16 of 20
Amenity, Feature and Service Preferences Friends versus Amenities: If you had to choose between one of the following communities, which would you choose? 8 2 76 % 24 % 82 % 18 % X 87 % 13 % 87 % 13 % Silent A community where my friends live but doesn t offer all the amenities I want A community that offers all the amenities I want, but I don t know anyone else who lives there 17 of 20
Amenity, Feature and Service Preferences Which are the five most important common area amenities to you? Parking 81 % 1 Fitness Center 1 Parking Fitness Center Outdoor Pool Additional Storage Access to Walking/Bike Paths Central Wi-Fi Indoor Pool Fireplace/Outdoor Living Space Hot Tub Extended Common Living Room Space 37 % 36 % 36 % 27 % 26 % 2 16 % 54 % 81 % Dog Park Movie/Media Room Bike Storage Business Center Tennis Court Yoga Studio Conference Room Ability to Reserve a Dining Space Dog Wash Area 15 % 15 % 12 % 11 % 8 % 7 % 6 % 3 % 2 Parking 3 Outdoor Pool 4 Central Wi-Fi 5 Access to Walking/ Biking Paths 2 Fitness Center Top 5 Common Area Amenities 3 Additional Storage 4 Outdoor Pool 5 Access to Walking/ Biking Paths Although most commonly desired area amenities are shared across all generations, there are slight nuances between age groups. Leasing staff should emphasize the differences to the prospects from their perspective age groups. For example, Millenials want to hear that the property has central Wi-Fi and then the other amenities, while s want to hear about additional storage. Lead with the generational difference. 83 % 81 % 83% 78 % 81 % 82% 76 % 59 % 54 % 48 % 53 % 68 % Fitness center Parking Outdoor pool Parking Fitness center Outdoor pool X Parking Fitness center Additional storage Parking Fitness center Additional storage Silent 18 of 20
Amenity, Feature and Service Preferences Which are the five most important apartment amenities to you? 1 Walk-In Closets 2 In-Unit Laundry 3 Balcony 4 All Utilities Included 5 Stainless Steel Appliances Top 5 Apartment Amenities 1 In-Unit Laundry 2 Walk-In Closets 3 Balcony 4 All Utilities Included 5 Window Coverings/Blinds Although most apartment unit amenity requirements are shared across all generations, there are slight nuances between age groups. As with common area amenities, leasing staff should emphasize the differences to the prospects from their perspective age groups. For example, s want to hear that the property has stainless steel appliances as well as the other amenities while s want to hear about window coverings. Walk-In Closets In-Unit Laundry Facilities Balcony/Outdoor Area All Utilities Included Storage Pantry Stainless Steel Appliances Wood Flooring Oversized Kitchen Window Coverings/Blinds Carpeting Gas Cooking Upgraded Lighting Fixtures Kitchen Island Ceramic Tile in Bathrooms Wall Mount for Flat Screen TV Built in Bookshelves Double Sinks in Master Bath Double Basin Sinks Hard Wiring for Telephones 8 7 7 52 % 45 % 33 % 31 % 31 % 3 3 24 % 22 % 13 % 12 % 11 % 8 % 7 % 6 % 4 % 3 % 7 73 % 72 % 68 % 69 % 7 68 % 66 % 53 % 49 % 52 % 5 Walk-in closets In-unit laundry Balcony/outdoor area Walk-in closets In-unit laundry X Balcony/outdoor area In-unit laundry Walk-in closets Balcony/outdoor area In-unit laundry Walk-in closets Balcony/outdoor area Silent 19 of 20
Amenity, Feature and Service Preferences Which are the five most important community amenities to you? 24-Hour Security 85 % 24-Hour Service Request Guarantee 8 Online Payments 71 % Package Delivery Services Apartment Cleaning Services 4 53 % Organized Fitness Classes Coffee/Breakfast Bar Concierge Services 29 % 29 % 29 % Organized Community Social Events Apartment Painting Services Social Media that share Community Activities On-Site Charitable Functions/Volunteer Opportunities Dog Walking Services Fluff and Fold Services Plant Watering Services 8 % 4 % 4 % 23 % 18 % 15 % 84 % 88% % 86% 84 87 % 8 8 78 75 % 75 % % 61 % 51 % 24-hour security 24-hour service request guarantee Online payments 24-hour security 24-hour service request guarantee X Online payments 24-hour security 24-hour service request guarantee Online payments 24-hour security 24-hour service request guarantee Package delivery service Silent 20 of 20 Copyright 2011 by J Turner Research, LP. All materials are the copyrighted works of J Turner Research, LP. All Rights Reserved.