Cultural customization for the Hispanic renter.

The rapid growth of the Hispanic population is having a profound effect on the U.S. economy and is prompting a dramatic evolution in the way business is conducted.

The real estate industry, specifically the apartment sector, is no exception to this newly required order of business. The U.S. Latino population has reached a level of influence in which culture-specific needs, wants and desires as consumers must be considered carefully in both a strategic and a tactical context. Every resource available indicates continued growth, influence and impact from this demographic. Companies must act now and be proactive. Successful businesses react to changes in the market place; they don't expect the market to adjust to them.

The dramatic growth of the Latino population, coupled with the fact that they are more apt to be renters than non-Latinos, means that maw in the apartment industry are seeing the resident profiles of their communities change before their eyes.

Tradition and Community

The vast majority of apartment owners, operators and developers don't share the Latino culture or speak Spanish and are at a complete loss as to how to address this phenomenon.

Another complicating factor is migration--Latinos are no longer just populating Florida, Texas, California, New York and Illinois, where in many cases, one out of every two or three renters is Hispanic; they are following job and advancement opportunities to states including Georgia, North Carolina, Wisconsin, Nevada, Virginia and Arkansas. Cities and communities, such as Milwaukee, Wisc.; Providence, R.I.; Atlanta; Raleigh, N.C.; and Portland, Ore., are benefiting from the cultural and economic impact of the Latino community.

A large segment of the Hispanic community has unique cultural traditions, nuances and consumption patterns that require a unique approach. And although not at all homogenous, Puerto Rican, Dominican, Central American, South American, Cuban and Mexican residents have many more commonalities than differences. Language is not the only common bond; a profound sense of pride of heritage and culture, a strong sense of community, a deep-rooted faith and a commitment to family are other traits many Hispanics share.

The savvy multifamily owner, operator and developer should view this demographic change in the renter pool and their unique demands and desires as an opportunity rather than a challenge. How can an owner or manager capitalize on this opportunity?

First, owners and managers must understand that the conventional "one-size-fits-all" approach to property operations, marketing, level and type of service and physical product is no longer effective when it comes to serving the Hispanic resident. Cultural customization is crucial.

Second, investing in the Latino community does not have to be cost-prohibitive. The cultural customization of a property may include something as simple as hiring bilingual or bicultural staff or using bilingual signage--costs that are already in many communities' budgets.

At the same time, it may involve a complete revamping of the community's grounds to include culturally relevant amenities, such as barbeque areas, to meet the cultural need to engage in family and social gatherings.

Plans should always include the development of a bilingual strategic marketing, communications and community outreach plan.

When property operations, marketing, customer service and physical product are properly culturally customized, multifamily owners, operators or developers can expect to see enhanced performances from their communities in the form of increased NOI and occupancy, lower bad debt, a decrease in resident turnover and increased word-of-mouth advertising from satisfied residents, all of which results in a stabilized, growth-oriented community. Clearly, cultural customization is a necessary small investment with the potential for greater returns.

Moises "Moe" Vela Jr. is the President of Comunidades LLC, a consulting business that advises apartment owners and operators on how to implement niche segmentation strategies, namely those addressing the fast-growing Hispanic market segment. Most recently, Vela was Senior Vice President of Multicultural Strategy at United Dominion Realty Trust, where he developed strategies and programs to enhance the company's attractiveness to an increasingly diverse employment and resident base. He can be reached at 303/567-2442.