LIHTC/Tax Credit 3-Step Application Process

If you are struggling with, or would like a better way of explaining the application process to a potential prospect, try using this 3-step process.

First inform the prospect that your community has income guidelines.  Those guidelines are based on the number of individuals in the household.  Ask how many persons are in the household and tell them the maximum allowable annual income for a household of that size.  Then choose one of these phrases to ask if:

a) They think, they would qualify

b) They are under or over this income limit

Use whichever method of questioning you are most comfortable with.

After the prospect has completed the application, let them know there will not be an immediate response on acceptance. Income verification is needed to verify the information provided on the application is accurate, and that there are no hidden bank accounts, home ownerships, or other assets of this type.
Explain to the applicant that there are three-steps in the application approval process.  
First, credit and criminal reports are run to be certain that the prospect meets the resident selection criteria as defined for that apartment community.

Secondly, if step one passes, the income verification process will begin. Let the prospect know that we are at the mercy of their employer, bank, and anyone else they listed, to verify the information on the application is true and accurate. In some cases, the need for the applicant’s assistance in obtaining the required documentation may be necessary.

The third and final step is the approval process. At Yarco Companies, we have a “second pair of eyes” review the file.  This confirms that all items have been properly verified, and nothing has been missed. When the applicant’s file has been successfully approved, the applicant can move in. This whole process could take a couple days or could easily take more than a week, depending on the speed with which all verifications and approvals can be completed.

Explanation of this process from the first initial contact with a prospective resident may help prevent some phone calls asking if the application has been approved. When a call is received asking about approval, notify the applicant which step of the process their application is in. With the information that has been given the applicant regarding the three steps required for approval, they should know what stage the verification is in and how much longer they may have to wait for a final decision and move-in date, hopefully reducing daily phone calls from the anxious applicant.

What ways have you found to help explain the procedure to prospects?

Linda Hansen ARM, HCCP
Director of Property Marketing
Yarco Company

Who Knows? Maybe You Could Be The Next TV Super-Star

At a recent AAKC lunch meeting, we were informed the hit TV Show, “Extreme Home Make-over” has selected a family in need in the KC Metro and they have asked for the help of our caring members. The local company building the new home (in only 5 days), only recently found out about this new project, so they are in need of literally everything. This project begins on July 30th when the family is “surprised” and they will work 24/7 building their dream home through that Saturday.

This sounds like a great opportunity for AAKC Members to come together and donate our time, efforts, trade-skills and supplies too. You may visit the link below to for a complete list of needed materials and opportunities. Who knows maybe you will even be on national TV?

Let’s step up and show this deserving family how amazing our association is! Visit www.joinextreme.com/kansas to sign up, make a donation and see a complete list of needs!

Join AAKC and help us say, "Move that bus!"

AAKC Social Hour

When Linda and I put our heads together and started the social media committee at AAKC, we had no idea how successful it would become. It has gone from some words on paper to an amazing group of people brainstorming ways we can make our association stronger.

We meet once per month like our other committees at AAKC. But, instead of planning a trade show or awards banquet, we plan ways to promote our association and other events. We create new ways for our members to get involved.

One of our most successful ideas is to host a monthly "Social Hour". Our committee chooses an establishment in a different part of the Kansas City Metro each month to host the event. A different committee member each month takes the lead and works out the details and even gets the location to donate a gift card or two for us to give away at the event. To promote this, we mainly use Facebook by creating an "event". The first Social Hour in December had about 40 people in attendance. A huge success! Each month after that we average about 50 members. We now even have a vendor sponsor the event. For a small fee, we put their name on the event page and use their name when promoting the Social Hour.

Some people still think social media is a fad and it is going to fade away into the sunset. I respectfully see things a little differently. I feel it is here to stay and I am so happy it is. After all it is so much fun!

It is great having a large committee of great people that are on the same page and can help come up with so many fun ideas. I can't wait to see where social media will take our association this year.


http://www.aakc.us/

Tweet to you soon,

Jeremy Lawson, NALP
Social Media Committee

National Apartment Careers Month

What is National Apartment Careers Month?

In 2010, the NAA Education Institute announced the first-ever National Apartment Careers Month. National Apartment Careers Month was created to bring awareness and promote the attractive and recession-resistant careers in the apartment industry.

Apartment Careers Month also encourages hiring personnel, whether they are onsite managers or corporate human resources managers, to evaluate this talent more effectively, exploring core competencies and not just looking for previous apartment industry experience.

New this year, NAAEI is calling for submissions for its “Get Reel” Career Video Challenge posted on YouTube, where winners can be eligible to win a trip to the 2011 NAA Conference and Exposition in Las Vegas. Click here to view contest rules.

In preparation for this event, NAAEI has developed the Workforce Development Packet, for hiring managers, apartment management companies and NAA affiliates and associations. Scroll down on this page to view these items.

Also available, NAAEI’s award-winning career materials, including the maintenance, leasing and management brochures and the DVD Careers in Apartment Management.

For information, contact NAAEI directly at 703/518-6141 or education@naahq.org.

Who can participate in National Apartment Careers Month?

Anyone can participate in National Apartment Careers Month. Apartment community staff, apartment management companies, hiring personnel and NAA affiliates are all encouraged to participate in creating awareness about careers in the apartment industry.

Raise Rents, But Offer An Early Lease Discount

None of us want to pay more money for the apartment or house we are renting. Most of us have trouble increasing our customers’ prices when we ask for a new renewal commitment. One of the things I’ve learned is that perception is reality. So the key to raising the rents while keeping resident retention high is to help your residents perceive that they are getting a bargain.

The Programs: Three months before their lease renewal date, send them a Rent
increase/ Lease notice. Include an early bird incentive to get them agree to the rent increase and sign immediately, thereby preempting a search for a new place to live. For example, let’s say you are trying to increase your rate by 5 percent on an $800-per-month rental unit, which comes out to $40 per month. Send them a rent increase for 8 percent, but offer them a 3 percent discount if they come and renew the lease within the next two weeks, a 2 percent discount if they come in within four weeks, and a 1 percent discount if they come in within five weeks.

Design the letter to outline the savings for each percentage offer. For example:
· The 3 percent discount would equal $24 per month or $288 per year.
· The 2 percent discount would equal $16 per month or $192 per year.
· The 1 percent discount would equal $8 per month or $96 per year.

The residents perceive that they are saving $288, while you’re increasing revenue by $480 per year. The resident may ask for the full percentage of savings during the course of the three months, but that’s okay. You still get the same perception and same revenue.

The keys to success are to design and test different initial rent increase notices, incentive pieces, and reminder cards announcing the end of another discount.

Projected Results: You will be able to test this program on a monthly basis and determine its net effect. The risks are small, but the rewards are large. One community that implemented the idea received a 65 percent early bird signing response rate!

Contributed by Rick Brown
http://www.smmonline.com/

NAA Intervenes in Missouri Apartments’ ....

...“Potentially, what happens in Missouri could become a test case for other states,” said Greg Brown, NAA’s vice president of government affairs. “We want to protect our members from being denied the right to individually bill residents for utilities, which has been shown to conserve resources.”...

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