The Best Things in Life Are Free

Garden Park Apartments was a rent-up property hovering around a 37% occupancy rate and unable to get over its poor reputation. A “Free Rent” marketing campaign was the key in flooding the property with happy renters, and revenue to Fountainbleau Management.

Situation

Garden Park Apartments in Greenville, TX is a community with 200 units and was built in 1971. Fountainbleau Management purchased the property, as with most of its acquisitions, as a HUD Housing property under foreclosure. What was inherited was a decades-long reputation of drug use, crime and dilapidation. Residents of Greenville knew to stay away from this apartment complex on the outskirts of town.

Following a successful formula of improving properties, reconstruction and new amenities were brought to Garden Park to revitalize the community. After its grand reopening, however, the renters didn’t come - something was still amiss, and traditional marketing and advertising were not working, like it had in the 25+ other properties in the Fountainbleau Management portfolio.

Garden Park Apartments offered newly renovated apartments, a club room with free computer and Internet use, a fitness center and tennis court, a playground and outdoor pool for families. Its history was the problem. Something extraordinary was needed to drive traffic.

The Process

I came up with a “Win a Free Year of Rent” promotion. I met with Finance to understand what I could use as a loss leader. The idea was to give away a free year of rent to one person out of 10. The objective was to fill these c. 120 vacant apartments, and if giving away just one of those to gain 9, there was still profit to be made that otherwise was not on the horizon. The monthly rate was about $1,000.

Next, I got executive buy-in by presenting that the promotion could guarantee 9 one-year leases which would total approximately $108,000 in annual revenue.

I integrated traditional advertising to promote the “Free Rent” campaign. We advertised on local radio, television and newspaper. The on-site property manager was directed to present to the local Chamber of Commerce to use word of mouth and networking to present the revitalized property.

The Results

The campaign was such a huge success that we kept running the promotion up to 5 times, re-starting the batch of 10 every time. This resulted in 50 new rentals, averaging $1,000/month in recurring revenue. Approximately $500,000 in annual revenue was added to the books. But most importantly, once people starting moving in and building a new community, the reputation of Garden Park Apartments blossomed. It became a thriving community that the people of Greenville wanted to learn more about, and settle in.