Over the last year, financial analyst Josh Staley mystery shopped 40 properties. He walks into leasing offices posing as a potential prospect. In doing so, he gathers critical information on competitors of our potential acquisitions.
During these mystery shops, our team determines how a property we are looking to buy is mismanaged by evaluating rates, other income, floor plans and amenities for its competitors. Josh’s accurate property ratings earned him a new title – certified mystery shopper.
But this certification doesn’t happen overnight. Josh racked up about 40 hours touring properties across the country. “We do our due diligence before any deal,” Josh said. “Larry taught me to look at the flow of floor plans and functionality.”
Director of analytics and mystery shopper Tyler Oberly toured more than 200 properties and is a certified mystery shopper as well. In the process, Tyler and Josh learned most properties operate drastically different than ours.
“Our first understanding of the rating process stems from acquisition tours with Larry,” Tyler said. “That’s where we start rating the floor plans and amenities. Afterward, Larry tests you and explains why you’re right or wrong.”
Mystery shops are an important part of our business. Based on ratings from these tours, our acquisition department determines where we can raise rates and increase NOI (net operating income).
“You have to go in with a story,” Josh said. “Tyler and I usually say, ‘Our companies are asking us to relocate. My wife wrote me a list of places to check out, so here I am.’ The sales associates don’t usually ask where we work or dig too deep into our story.”
“They act annoyed when you come in at a certain time for a tour and have even offered up suggestions on other places in the area where we could rent,” Josh added.
Recently, Tyler toured the competition near our soon-to-be new acquisition Neon Burnsville in Minneapolis. Chief financial officer Scott Cassell tagged along and saw firsthand how we stand out as elite operators in the industry.
“The sales associate didn’t ask us our names, didn’t introduce herself and forgot to show us the one bedroom on the tour,” Tyler said. “It just goes to show how our sales associates are elite and our training program teaches us to truly care about our prospects and residents. We dig deep to find out what they want.”