Thread: What Are the Warning Signs of a Failing Facility?

This is especially a question for owners. What standards do you use to know that one of your facilities is in some trouble and either needs some help or new personnel to succeed?

Is it, say, 3-6 months straight of declining occupancy? Six straight months of declining revenue? Repeated complaints about customer service? Other issues?

What are the warning signs, and in the past couple of years, have you been likely to say, "Well, it's just that the economy's tough right now. We can't really do anything differently, and it will turn around when things get better."

Managers, at what point do you start to the feel the pressure that you have to turn things around?

Originally Posted by jcarlisle

"Well, it's just that the economy's tough right now. We can't really do anything differently, and it will turn around when things get better."

First thought off the top of my head is; wrong attitude. When things are down is simply when you must get more creative in your efforts. You can't rest on your laurels so to speak when the economy tanks, you just have to step up your game!

Present company not included, most times when a property tanks it is; A. Because ownership won't be pro-active and put anything into their facility and B. The management may be burnt out. This doesn't necessarily mean the staff needs replacing, but maybe a morale boost is needed. A break away from the job, a refreshed outlook etc.

To answer the question directly, if your property is performing within the range of the competition, it is probably a sign you just need to hang on and ride the market out. If the differences are drastic, it is time for a change. At that point, I think I'd bring in MisterJim444 or a like minded individual to take a look around and offer up suggestions on how to improve.

Originally Posted by jcarlisle

This is especially a question for owners. What standards do you use to know that one of your facilities is in some trouble and either needs some help or new personnel to succeed?

Is it, say, 3-6 months straight of declining occupancy? Six straight months of declining revenue? Repeated complaints about customer service? Other issues?

What are the warning signs, and in the past couple of years, have you been likely to say, "Well, it's just that the economy's tough right now. We can't really do anything differently, and it will turn around when things get better."

Managers, at what point do you start to the feel the pressure that you have to turn things around?

There are so many factors to discuss here, but to be generic.

Any single month of declining occupancy needs to be interpretted correctly. 3 months is disturbing particularly without good reason.

Repeated customers service complaints is a serious problem.

Repeat problems or initatives/concerns that you find yourself talking about month after month is also a problem.

Once identified, don't forget to solve the problem.

Battle back, stay positive, have fun ...

If you went by the declining revenue angle My place would have been considered failing from september 09 to april this year but it was just the economy, we're back up to over 90% (but the phones have slowed down this month)

Don't feel bad about phone calls, if I get one serious sales call a day I consider it a good day. I don't rely on the phone for the healthy occupancy here, Most of my rentals come from referals and my personal marketing of the neighborhood.