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THE UNIVERSITY DAILY KANSAN
HOUSING
WEDNESDAY, JULY 7, 2004
Landlords respond to market saturation
Some apartment managers offer big discounts, others sit and wait for student tenants to return
Many Lawrence apartment complexes have initiated marketing campaigns and specials in response to the highest tenant shortage in six years. These signs at Berkley Flats advertise available units and specials.
Courtney Kuhlen/Kansan
By Katy Humpert Special to the Kansan editor@kansan.com
For Ryne Tusten, Olathe sophomore the tough decision this spring was not which apartment complex to sign with for the fall, but which deal was better.
As a future resident of Leanna Mar Town homes, 4501 Wimbledon Drive, Tusten was offered either a half month free rent or a surround sound stereo system for signing the lease. He and his roommates chose the stereo system.
"It was pretty nice, they had it set up in an apartment on a TV and everything and we went and tried it out." Tusten said.
In reaction to the highest tenant shortage in six years, Lawrence apartment complexes launched extensive marketing campaigns, rent and deposit discounts and giveaway specials in an attempt to compete with the newly-built apartments. Other apartment complex managers chose to do nothing but sit and wait for the tenants to return. Surprisingly, both of these responses produced the same result
— the return to a normal occupancy rate. This outcome is causing confusion over whether the supposed abundance of
apartments was ever a problem at all.
In August 2003, a local real estate appraisal firm, Keller & Associates, surveyed 35 percent of the total apartment market in Lawrence to find the average occupancy rate. Property managers
reported their average occupancy at 92.3 percent, down from about 94 percent in 2001. Moreover, the occupancy rate for August, 91.7 percent, was far lower than previous years. In August 2001, occupancy rate was more than 96 percent.
Linda Love, apartment manager at Park-25 Apartments, 2401 W. 25th St., experienced only 88 percent occupancy this past school year, almost 10 percent lower than normal. As of June 17, however, the complex only had a few one-bedroom apartments left.
Love attributed this drastic change in the number of tenants to her staff and some creative advertising.
"We have had to work really hard at it," Love said.
Love offered specials to renters such as one-month free rent, which could be spread out over a 12-month period for $50 off of each month's rent.
In addition, Love launched a marketing campaign during the NCAA basketball tournament.
"We had some fun with it. We did a little basketball campaign during the tournament, distributing them downtown where college kids like to hang out." Love said.
Jessica Stewart, manager of Tuckaway Apartments, 2600 W. 6th St., said last year was more difficult than most, but, instead of working on a new marketing campaign to bring in tenants, she chose
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