Trade Street Residential

Mid-sized Market Trends

By Erica Rascón on Jul 21, 2014 in People

2014 has experienced notable growth in mid-sized markets with an expected rent growth of 3-5 percent by year’s end. Yardi client, Trade Street Residential, has capitalized on this market, flourishing in developing markets throughout the southern United States. To achieve its success, the company became proactive about its new wave of renters and their metropolitan aestheticism.

Though renters in mid-sized markets are traditionally “more sleepy” and less demanding, Caren Cohen, Director of Accounting, has noticed a shift in renter expectations. Suburban and rural Millennials aren’t respecters of city limits. Their tastes have become just as sophisticated as their urban neighbors.

“Some of the young renters expect the same as they do in an urban environment. So we, depending on our location, have to cater accordingly,” says Cohen. Accommodating suburban renters with rural tastes is a two-step process. Trade Street Residential improved operations at community clubhouses to include more activities and nicer amenities. Additionally, onsite personnel reexamined their event calendars, hosting engaging events for tenants and finding new ways to promote resident retention.

Talison Row in the Charleston suburbs is a prime example of the company’s approach. Modeled after luxury resorts, the community promotes a fun atmosphere with engaging entertainment. Talison Row offers both indoor and outdoor entertainment spaces: the outdoor space is the uncontested favorite, providing the backdrop of the community’s summer cooking classes, fall Oyster Roasts, and residents’ private parties. The indoor game room is often the venue for wine tastings, cigar and bourbon tastings, and themed parties where residents can explore international cuisine.

To enhance the metropolitan appeal, Talison Row offers services such as valet dry cleaning delivery and pick-up. Residents don’t have to worry about gym memberships, either. The community fitness center offers the same equipment as larger gyms in addition to free instruction in Zumba, Yoga, and Pilates.

Renters in mid-sized markets also expect the same conveniences as residents of faster-paced cities. Online applications and mobile bill pay have become the standard. Trade Street Residential relies on Yardi  products to help onsite staff facilitate such transactions with ease. Currently, the company uses Voyager 7S, RentCafe, Resident Screening, and PAYscan.

“Everything is integrated,” says Cohen. “We don’t have to log into multiple products to get the job done, so it’s more efficient for the managers to lease at the site. They run through the credit screening. We have the leases online, and we can get it done in no time, and it’s almost immediate.  So in the middle of the night, if the resident wants to lease, they get to know if they can and know if they can actually get the apartment or not straightaway.” Renters can then pay their rent online and submit maintenance requests. “Our staff just has to touch one button, log in, and they get everything that they need.”

As the job market strengthens, renters have the option to move to larger cities or stay in mid-sized markets. By receiving metropolitan amenities in the suburbs, Trade Street Residential renters have fewer incentives to leave. But that is only part of the company’s retention strategy. The staff also places emphasis on customer service in order to bring tenants into a larger community structure.

Stacie Dadamo, Community Manager at Talison Row, believes that building relationships is a strong component to resident retention. “What we have been able to accomplish here is building real relationships with our residents. The advantage of this is that people are less likely to move because they are a part of something bigger and more meaningful,” says Dadamo. “Part of our resident retention efforts involves providing superior customer service, responding quickly to concerns and doing ‘random acts of kindness.’ This is when we call residents to just say ‘hi!’ and see how they are doing. The result of the service we provide results in long term residency and resident referrals.”

Trade Street Residential has maintained its appeal with a changing market by offering metropolitan amenities and technological conveniences in a customer friendly package. It has been a gradual process with great rewards.

“We have a very, very bright future for a very young company,” says Cohen.