July 27, 2010
Multifamily Granite Counter Investment Decision
Granite counter tops in rental communities provide a valuable competitive advantage in attracting and retaining residents - while adding lasting value to your property. Real granite counters yield over a 20% return on investment over laminate and cultured marble tops with a rent premium of as little as $4 per month. For example, at an 8% cap rate $4 per month in rent equals $600 in real property value ($4x12/.08). If laminate/cultured marble counters cost $275 per unit and real granite counters cost $750, the incremental rate of return is (600-475)/475 or 26% based on only $4 extra per month in rent! At a rent premium of $25 per month the investment is paid off in 19 months and the return on investment (689%) is substantial. Using the same figures, at $25 per month the return on investment for a 306 unit property could be over $1 million (306 units x($25x12/.08-$475)). Obviously, pricing varies based on unit layouts, project size, project location, schedule and materials selected. Whether renovating a whole property, creating 50 premium units, or building a new property, contact The Baypath Group for details at www.TheBaypathGroup.com
Customer Service, Loyalty and a Nine Year Old
Last summer, my family and I stayed in several different hotels. While travelling for a wedding, we had the good fortune to stay in a hotel that was open less than a month. It was a luxury hotel with impeccable service and was an amazing experience that we only booked due to “pre-grand opening” pricing. The ninety year old hotel that we stayed at the next night, which had a tough act to follow, is what this story is about.
We arrived at the older hotel on a rather depressing day of wind driven heavy rains. Our first impression was of a nice looking, tall, narrow portico that wasn’t large enough to fully protect us from the elements as we came to a stop. However, as I placed the car in park, two young men were already positioned with large umbrellas to usher us into the lobby unscathed by the weather. The lobby was a celebration of the hotel’s history, with beautiful hardwood floors, antiques and oriental rugs. The focal point of the room was a large beautiful welcoming dog, quietly sitting on his bed and wagging his tail. On a small blackboard next the dog, written in chalk it said the dog’s name and “I love to be pet.”
One of our “umbrella escorts” continued pleasantly chatting with us as we walked into the hotel. Intertwined with an introduction to the dog, and introductions to another family petting the dog, was some information about the hotel as well as a genuine interest in us and our trip. The other escort went straight to the front desk and then returned outside to get our luggage. When we approached the desk to check in, the clerk greeted us by name (which umbrella escort number 2 had casually informed her of while we were being entertained by our main escort and the dog). The room key was ready, and we were politely shown where the elevator was and given instructions on how to get to our room.
After looking around a little, we found ourselves alone in a rather old elevator, talking about what a nice hotel it was, the personable staff, and how we felt comfortable and welcome. It isn’t easy to pull off antique and quaint without it feeling old and stuffy. Nor, is it easy to make children feel welcome in a place that conjures up thoughts of museums and libraries when you step though the door. So far, I am impressed.
When the elevator opened up on our floor, the reality of the hotel’s age was striking with the narrow hallways and I started to become a little anxious about our room. As we approached our room, our main escort appeared from an unseen freight elevator with our luggage in tow. My wife and I looked around the room, while our escort was chatting with our nine year old about our trip and a really neat old candy store in the area. The room was much like the lobby with hardwood floors, nice rugs, and antique furnishings. It was larger than expected with a nice sitting area. I thought the room was a nice surprise and was taking a look at the large bathroom with a Victorian claws foot tub and stylish mosaic tile when our nine year old spoke up.
He addressed our escort by name and then said, “this is a nice room, but I don’t want to stay here.” As we attempted to apologize, the escort did not hesitate. Kneeling back down to my son’s level, he asked what he liked most about the best hotels he stayed at. Being a nine year old, he said fluffy covers, flat screen TV’s and mini-fridges.
I have never asked for a different hotel room, but the escort wouldn’t hear of our protestations at moving. He strongly suggested we look at another room before deciding. He asked if we would prefer a room with modern furniture over a room furnished with antiques, and we admitted that we would. He also asked whether the view or floor were important to us. Our escort then told us to relax, not unpack anything, and he would be back in a few minutes with a key for a room where we would all be happy. I expected him to go all the way down to the front desk and be gone for a while. However, he was gone less than two minutes. He just went down the hall to talk to the staff privately. He escorted us to a different wing of the hotel that was recently renovated, where we passed the other umbrella escort in the hall. He greeted us, discreetly handed our main escort a key, and left without breaking stride. We were treated to a different suite with a flat screen TV and a kitchenette complete with a kitchen table in place of the quiet seating area. He apologized profusely that he and the staff did not find the right room for us the first time. It seems my interest in an antique desk in the lobby was interpreted to mean I would enjoy staying in a historically decorated room.
In some respects, “service” is more straightforward at a newer property. Guest expectations are predictable and first impressions get things off to a good start. At the most basic level everything is shiny, new, and spotless. There are less maintenance issues to be concerned about and it is easier to maintain a positive environment than to build one from scratch or from a deficit. The property design itself is more modern and typically has features and touches that are not present in older properties. The location is even likely to be more conveniently located to newer restaurants, shopping and high growth corridors at a newer property adding appeal to the overall experience.
Here was a staff that went out of their way to help us, make us feel comfortable, and at home. The staff warmly greeted us by name throughout our visit (including the maid that serviced our room and the phone operator). “This is Cindy, how can I help the Francis family” is a little more personal than answering the phone “operator”. They even asked if we needed recommendations for dinner in a way that made you know they wanted to help. They were genuinely helpful (not just going through the motions of sucking up in hopes of a tip). There was no rotating fabricated touch points where a valet and two different porters are involved (all expecting tips) as you check in or out. Interruptions where answering the phone take precedence over the guest standing in front of the staff just did not exist like they do at so many hotels.
When we checked out, a map and directions to our next destination were slipped under our door with the bill. We didn’t ask for the directions. When we first arrived, our umbrella escort listened, knew where we were headed, and that we had not been there before. We enjoyed our stay and continue to stay with that hotel chain whenever we can. We also have encouraged countless others to stay there. Not everyone executes as well as the oldest hotel in the chain, but we have never been disappointed.
We arrived at the older hotel on a rather depressing day of wind driven heavy rains. Our first impression was of a nice looking, tall, narrow portico that wasn’t large enough to fully protect us from the elements as we came to a stop. However, as I placed the car in park, two young men were already positioned with large umbrellas to usher us into the lobby unscathed by the weather. The lobby was a celebration of the hotel’s history, with beautiful hardwood floors, antiques and oriental rugs. The focal point of the room was a large beautiful welcoming dog, quietly sitting on his bed and wagging his tail. On a small blackboard next the dog, written in chalk it said the dog’s name and “I love to be pet.”
One of our “umbrella escorts” continued pleasantly chatting with us as we walked into the hotel. Intertwined with an introduction to the dog, and introductions to another family petting the dog, was some information about the hotel as well as a genuine interest in us and our trip. The other escort went straight to the front desk and then returned outside to get our luggage. When we approached the desk to check in, the clerk greeted us by name (which umbrella escort number 2 had casually informed her of while we were being entertained by our main escort and the dog). The room key was ready, and we were politely shown where the elevator was and given instructions on how to get to our room.
After looking around a little, we found ourselves alone in a rather old elevator, talking about what a nice hotel it was, the personable staff, and how we felt comfortable and welcome. It isn’t easy to pull off antique and quaint without it feeling old and stuffy. Nor, is it easy to make children feel welcome in a place that conjures up thoughts of museums and libraries when you step though the door. So far, I am impressed.
When the elevator opened up on our floor, the reality of the hotel’s age was striking with the narrow hallways and I started to become a little anxious about our room. As we approached our room, our main escort appeared from an unseen freight elevator with our luggage in tow. My wife and I looked around the room, while our escort was chatting with our nine year old about our trip and a really neat old candy store in the area. The room was much like the lobby with hardwood floors, nice rugs, and antique furnishings. It was larger than expected with a nice sitting area. I thought the room was a nice surprise and was taking a look at the large bathroom with a Victorian claws foot tub and stylish mosaic tile when our nine year old spoke up.
He addressed our escort by name and then said, “this is a nice room, but I don’t want to stay here.” As we attempted to apologize, the escort did not hesitate. Kneeling back down to my son’s level, he asked what he liked most about the best hotels he stayed at. Being a nine year old, he said fluffy covers, flat screen TV’s and mini-fridges.
I have never asked for a different hotel room, but the escort wouldn’t hear of our protestations at moving. He strongly suggested we look at another room before deciding. He asked if we would prefer a room with modern furniture over a room furnished with antiques, and we admitted that we would. He also asked whether the view or floor were important to us. Our escort then told us to relax, not unpack anything, and he would be back in a few minutes with a key for a room where we would all be happy. I expected him to go all the way down to the front desk and be gone for a while. However, he was gone less than two minutes. He just went down the hall to talk to the staff privately. He escorted us to a different wing of the hotel that was recently renovated, where we passed the other umbrella escort in the hall. He greeted us, discreetly handed our main escort a key, and left without breaking stride. We were treated to a different suite with a flat screen TV and a kitchenette complete with a kitchen table in place of the quiet seating area. He apologized profusely that he and the staff did not find the right room for us the first time. It seems my interest in an antique desk in the lobby was interpreted to mean I would enjoy staying in a historically decorated room.
In some respects, “service” is more straightforward at a newer property. Guest expectations are predictable and first impressions get things off to a good start. At the most basic level everything is shiny, new, and spotless. There are less maintenance issues to be concerned about and it is easier to maintain a positive environment than to build one from scratch or from a deficit. The property design itself is more modern and typically has features and touches that are not present in older properties. The location is even likely to be more conveniently located to newer restaurants, shopping and high growth corridors at a newer property adding appeal to the overall experience.
Here was a staff that went out of their way to help us, make us feel comfortable, and at home. The staff warmly greeted us by name throughout our visit (including the maid that serviced our room and the phone operator). “This is Cindy, how can I help the Francis family” is a little more personal than answering the phone “operator”. They even asked if we needed recommendations for dinner in a way that made you know they wanted to help. They were genuinely helpful (not just going through the motions of sucking up in hopes of a tip). There was no rotating fabricated touch points where a valet and two different porters are involved (all expecting tips) as you check in or out. Interruptions where answering the phone take precedence over the guest standing in front of the staff just did not exist like they do at so many hotels.
When we checked out, a map and directions to our next destination were slipped under our door with the bill. We didn’t ask for the directions. When we first arrived, our umbrella escort listened, knew where we were headed, and that we had not been there before. We enjoyed our stay and continue to stay with that hotel chain whenever we can. We also have encouraged countless others to stay there. Not everyone executes as well as the oldest hotel in the chain, but we have never been disappointed.
July 19, 2010
Pixar founder on effective teams, management and success
Ed Catmull the President of Pixar gave an amazing interview to The Economist that is worth watching below. Creating and protecting dynamics where honest constructive feedback is not just nurtured, but demanded from everyone he says is essential for Pixar’s success. It doesn’t happen on its own, but a culture where everyone is expected to contribute and not hold back regardless of whether you are talking to John Lasseter or anyone else in the organization is needed to make things work. His comments about organizational quaking rather than solidity being a positive thing are also insightful.
July 14, 2010
Perspective, Focus, a Gorilla and an Elephant
I recently viewed, as thousands have, the “invisible gorilla test” on YouTube. The headline in the accompanying story was “How Little We Notice”. For those of you that have not seen it, they pass a ball around and ask you to count the number of passes while unexpected things happen right out in the open. Suffice it to say, that while the sample size of their study did not appear too scientific, a lot of people miss the unexpected things in the background. Interestingly, “what I noticed” in the article was it did not mention or analyze who correctly counted the passes.
The video reminds me about research that used imaging technology and mapped how the brain makes decisions. The short version being that when faced with alternatives, everyone goes through the same process where they compare usually two, but a maximum of three, alternatives at a time. While we think we are choosing between ten menu items or granite counter colors we are actually making a series of individual comparisons of one item to another.
We also all subconsciously make thousands of filtering decisions. Should we listen to the air conditioner fan, the buzzing light, the soft music, the person in the office next door, the person on the phone with us, or the person who walked in and asked us a question? We disregard the fan, the light, the music, the person in the office next door and a whole host of other things as unimportant. If we focus, we might be able to understand both the person on the phone and the person who just walked in and asked us a question.
An awareness that we are all predisposed to focusing on task (or choice) A and B to the exclusion of all else is important. There are times to concentrate and be hyper-focused, but they need to be tempered with big picture awareness. Not everyone is blessed with the innate ability to timely shift from one (attention to the correct details), to the other (good broad perspective) in the span of microseconds and be spot on every time, even if you are.
The right perspective is the key. Keep an open mind; but if the color of the curtain, how many people are in the video, or somebody dressed up as a clown or gorilla are not important in the context of what you are trying to accomplish, by all means filter them out and focus on what is important. If you can manage it, be aware when you are engrossed and filtering, so you can appropriately and timely re-engage. It would be wise though, not to ignore an elephant in the room.
The video reminds me about research that used imaging technology and mapped how the brain makes decisions. The short version being that when faced with alternatives, everyone goes through the same process where they compare usually two, but a maximum of three, alternatives at a time. While we think we are choosing between ten menu items or granite counter colors we are actually making a series of individual comparisons of one item to another.
We also all subconsciously make thousands of filtering decisions. Should we listen to the air conditioner fan, the buzzing light, the soft music, the person in the office next door, the person on the phone with us, or the person who walked in and asked us a question? We disregard the fan, the light, the music, the person in the office next door and a whole host of other things as unimportant. If we focus, we might be able to understand both the person on the phone and the person who just walked in and asked us a question.
An awareness that we are all predisposed to focusing on task (or choice) A and B to the exclusion of all else is important. There are times to concentrate and be hyper-focused, but they need to be tempered with big picture awareness. Not everyone is blessed with the innate ability to timely shift from one (attention to the correct details), to the other (good broad perspective) in the span of microseconds and be spot on every time, even if you are.
The right perspective is the key. Keep an open mind; but if the color of the curtain, how many people are in the video, or somebody dressed up as a clown or gorilla are not important in the context of what you are trying to accomplish, by all means filter them out and focus on what is important. If you can manage it, be aware when you are engrossed and filtering, so you can appropriately and timely re-engage. It would be wise though, not to ignore an elephant in the room.
Cornerstone Strategies for The Multifamily Industry
Managers at all levels of Multifamily are faced with strategic decisions and Chris Lee discusses some key considerations that are applicable to individual managers as well as firms. See the entire article at http://tiny.cc/x58f5
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