Bell Partners' COO Gwyneth Coté sat down with units Magazine to assess the apartment industry's landscape and talk about Bell Partners' plans moving forward. Coté participates in NAA's annual Executive Forum, held in conjunction each year with the NAA Education Conference & Exposition.

units:  The apartment industry overall has been on an incredible roll for the past few years in terms of rent increases and favorability among consumers and households. How much longer can it go? What would prolong these good times, or harm its good fortunes?

GC:  What an excellent year for the apartment industry! Occupancy nationwide is at 95 percent, and YTD rent growth, at least through the first half of the year, is at the highest level nationally since 2009. At the current pace, rent growth for 2015 will surpass 5 percent. This year's performance is particularly impressive, given the strength of the recovery cycle that have seen over the past several years.

"We think that this trend will continue, since we are looking at a fairly good macro-economic picture in the near term. The economy is adding jobs at a robust rate, and consumers are still showing a preference for renting over homeownership. We're also on the front edge of the Echo Boomers (the largest segment of the U.S. population) moving through the prime rental age bracket. So, overall, we see the fundamentals underpinning the market as very strong, and this bodes well for the multifamily industry going forward. 

units:  Are there areas of the country where the apartment industry is performing best? And if so, why?

GC:  Yes, within the context of an overall strong national market, there are areas in the country that outperform others.

From our perspective, the strongest markets are on the West Coast, particularly San Francisco, San Jose, Oakland and Seattle, as well as a series of metro markets around the country, including Denver, Nashville, suburban Boston, Phoenix and Charlotte.

Coastal Florida markets have also exhibited strong fundamentals, with rent growth in excess of 6 percent this year. Conversely, the Washington, D.C., Baltimore, Houston and Chicago markets have lagged somewhat on a relative basis. When discussing the relative strength of these markets, it's important to understand that the best markets for apartment investment are generally those with the strongest employment prospects and steady job growth.

units:  New development seems to be dominating the supply side. How much longer will that continue? Do you see it shifting more to repositioning any time soon? What might trigger that?

GC:  We are seeing evidence of new supply putting some downward pressure on rent growth in the downtown (CBD) areas of several markets, including Atlanta, Chicago, Miami, Dallas, Los Angeles, Philadelphia, Washington, D.C., and Raleigh, N.C., as well as in several suburban pockets. Still, in making decisions in any cycle, you need to aim your darts carefully and examine market and submarket trends closely. Overall, however, I would say that the picture is very encouraging-especially with all the 'doom and gloom' talk that surrounded new supply just a couple of years ago.

units:  How does Bell measure the value that its residents see in the rent that they pay? What comments do you hear from your residents about why they choose to rent, rent with Bell and renew with Bell?

GC:  We are very focused on measuring customer satisfaction and expectations. We work with Kingsley Associates, an independent research firm, to survey over 400,000 residents and prospective residents each year. This helps us gauge and respond to a spectrum of categories, including "value for amount of rent paid." We also routinely conduct resident focus groups to gather data on how and why residents decide to lease with a Bell-managed community.

This research tells us that residents make their leasing decision primarily based on location, with price being a close second. Apartment floor plans and community features are also important factors, as is their experience with the leasing staff. At the same time, we often hear that residents decide to rent with us because the property is a Bell community. Bell's reputation in the market is strong, and this is definitely a factor in initial apartment home selection.

As to lease renewals, residents tell us that simple things do matter. Just remembering the residents' names, as well as those of their children and pets, makes a big difference in their overall living experience. 

We use this sort of information to focus and refine our efforts to deliver excellent customer service from the minute the prospect walks in the door to lease through their renewal. We are particularly proud that, while living with us, residents' views of the Bell brand become increasingly positive. Their day-to-day experiences-particularly 'Hassle Free Living,' professional management, and quick and responsive maintenance teams-directly contribute to their decisions to stay with Bell.

Although all this is easier said than done, we are succeeding, as far as our residents are concerned. In our most recent resident surveys, we exceeded the industry average for both the "overall satisfaction" and the "I feel valued as a resident" categories. Our residents have lots to say, and we make sure we are listening.

units:  Has hiring been a challenge at Bell for either construction or operating the communities? Where does Bell find its employees and what does it do to retain these valuable staff members?

GC:  Hiring the best people, which is our goal, is always a challenge because the 'best' are always in demand. We take a multi-faceted approach when it comes to attracting the most sought after associates. First, we have a robust outreach through normal recruitment channels and the Internet.

However, we are also very aware of the fact that our reputation in the industry is a key to bringing in the most desirable new employees. We also know that top-flight managers want to work with companies that score high in customer satisfaction, as we do. We focus on corporate culture, with five stated Core Values including "Do the Right Thing Every Time," "Serve Somebody!" and "Prepare for the Future Today."

Having a defined culture is an important factor in attracting and retaining the highest quality employees. We make sure that our compensation and benefits packages are competitive, and we provide ample opportunity for professional development and internal advancement. We think that taking this holistic approach, concentrating on all these factors, is the best way to attract and keep the best and the brightest talent within the Bell family.

units:  What new trends in property management are you seeing today that could accelerate in the next year or so when it comes to maintaining the property, marketing or general design?

GC:  We are seeing a number of sustainability initiatives gain traction in property renovations and upgrades, and we expect to see this trend accelerate.

First, smart thermostats with Internet connectivity for remote management are convenient, environmentally friendly and economically efficient.

Second, new and highly improved shower heads, which reduce water consumption yet look great and maintain water pressure, are increasingly in use.

Finally, we're installing USB and electric outlet combination devices to allow device charging at the outlet without the need of a transformer. We expect to see these "green-oriented" initiatives-which are very popular with residents-become fairly standard in renovations over the next few years.