The Budget Squeeze Hits Training and Marketing First

Written by: Ronald Harrington  | When rents are stagnant, concessions are rising, and costs are climbing, budget cuts become a necessity. But why does it seem that the training and marketing departments are the first to face reductions? This reality caused me to ponder the reasons behind the trend, especially considering the vital roles these departments play, particularly during economic downturns.

One potential reason for this trend is the perception that training and marketing are purely cost centers rather than revenue-generating entities. I believe this perception is inaccurate, as these departments contribute significantly, but indirectly, to income, and they often influence decision- makers. Demonstrating the return on investment (ROI) of these departments can be challenging due to the difficulty in quantifying their direct impact on property performance. It's crucial to improve understanding of the multifaceted nature of these departments. Beyond merely marketing and leasing; they serve as the backbone of property income generation.

Without effective marketing, attracting residents becomes challenging, and staying abreast of market trends is essential for property success. Training goes beyond simple instruction; it's about empowering team members to excel in their roles. Negative perceptions of training often stem from past experiences. It’s essential to move away from the "death by PowerPoint" stereotype. Instead, focus on delivering value beyond what appears on an income statement, showcasing the tangible impact of training on property performance.

Just as one would invest in resolving issues that affect property income, investing in training is crucial for ensuring team member performance and customer satisfaction. Investment in people ultimately yields returns by fostering a culture of excellence and customer care. An anecdote from my childhood reinforces the principle that investment is necessary for returns. As an 8-year-old, I served as president of a youth group. I needed to secure funding for our activities, akin to marketing efforts. The lesson I learned, "You have to spend money to make money" remains relevant and underscores the importance of strategic investments in both personal and professional endeavors.