Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or...
Reexamination Certificate
1999-02-18
2001-11-06
Trammell, James P. (Department: 2161)
Data processing: financial, business practice, management, or co
Automated electrical financial or business practice or...
C705S014270, C705S027200
Reexamination Certificate
active
06314404
ABSTRACT:
FIELD OF THE INVENTION
This invention relates to a method and apparatus for managing real estate brokerage referrals by a broker for residential real estate rentals by a potential tenant. It is directed to the method of handling referral fees and the relationship among the broker, the tenant, and the owner of an apartment complex rental.
DEFINITION OF TERMS
1. A real estate brokerage referral means
Referrals made by a duly licensed real estate broker for earning a commission
2. A broker means
An individual or business entity duly licensed to transact business for others to earn a commission
3. A potential tenant means
Individual(s) potentially acceptable to an apartment complex that legally and economically are able to sign a lease to become a tenant
4. A geographically categorized real estate listing means
Real estate sorted by country, state/province, county, city/township/municipality/etc., or by postal zip code
5. A desired apartment complex means
A single apartment complex selected for possible occupancy by a potential tenant
6. A geographical location means
A place selected by zip code, country, state/province, county, city/township/municipality/etc.,
7. An individual referral fee agreement means
a real estate brokerage contract for an apartment complex to pay a referral fee to a broker for directing a potential tenant to their apartment complex if the potential tenant signs a lease for that property. The real estate brokerage contract is only for that particular individual(s) and that particular apartment complex designated by the written contract.
8. An agent for the desired apartment complex means
Anyone legally authorized to sign obligations for the owner of the apartment complex
9. A referral fee means
A commission earned by a broker for directing an individual(s) to a person or business entity to accomplish a business transaction
10. A real estate lease means
A written contract by which one party gives to another party the use and possession of real estate for a specified time for fixed payments
11. A rental unit means
Real estate leased for occupancy by people to live in
12. An inducement benefit package means
One or more products or services with economic value given to the tenant as an inducement
13. A broker computer system means
A computer system as in definition number
21
used by a broker
14. A database of real estate rental listings means
A Relational Database Management System (RDBMS) for the storage and retrieval of information on property for rent
15. An online brokerage referral fee agreement means
A written contract for earning a commission created by a broker that is accessible on a computer system
16. A transfer means
Transmitting as binary-encoded information from one computer system to another.
17. A potential tenant computer data processor means
A computer system used by a potential tenant.
18. A storage medium means
Any device attached to a computer system which is capable of long-term storage of data. Specifically, the data must persist across power-cycling of the computer system, and through disconnection of the device from the computer system. The device stores or retrieves data as directed by the computer system.
19. Encoded means
Transforming information into binary code understandable or transferable by computer.
20. A computer system means
A device commonly referred to as a “computer” including, but not limited to, a central processing unit (CPU), random access memory (RAM), persistent storage media, and an interface to a telecommunication network.
21. A broker computer processor means
A computer system used by the broker.
BACKGROUND OF THE INVENTION
Apartment leasing is a 6 billion dollar a year business. Approximately 40% of America's households are renters. Furthermore, 33% of all apartments turnover annually. This equates to approximately 10,000,000 new leases per year. Tenants move frequently because of job status, transfers, changes in financial, marital, and familial status, the need for more or less living space, medical and old age needs, and home purchases. Fortunately for apartment owners, this dynamic environment does not, in the short run, change the total number of renters in the market. Apartment owners, however, must find ways to attract new residents every month or risk economic losses. Apartment owners are looking for ways to increase the probability that qualified tenants will want to move into their apartments.
National, state and local markets have historically reported annual vacancy rates of between 4% and 10% in larger (over 30 units) apartment complexes. Because of this, the need to market continuously is more prevalent than ever. Maintaining a constant flow of prospective renters through the leasing office is necessary for stabilizing the occupancy of a property. Given the opportunity, apartment owners would rather pay a fee to a broker to fill a vacancy immediately, rather than wait until they are able to fill it themselves. This is especially true, given that the brokerage fee is worth, on average, only 18 days of a 1 year lease. Brokerage fees have become an acceptable alternative to vacancy and are considered both part of the marketing campaign and a line item expense in the budget. The higher occupancy level achieved with the aid of tenant brokers allows the apartment owner to raise rents at a faster rate.
Apartment complexes rely on a combination of media for their advertising, including local rental guide magazines, classified newspaper or display ads, radio, TV, and the Internet. All of these advertisers charge money up front regardless of results. The tenant broker is the only marketing source which requires no up front expense and is paid strictly for results. It is unlikely that out of town renters, which are an integral part of the larger pool of applicants required by larger properties, will find the property's local advertising. The Internet provides a solution to this problem.
Because of the scope of the Internet, the marketing strategies of apartment complexes are beginning to change. Apartment owners recognize that online rental guides on the Internet offer an inexpensive way to reach apartment shoppers. Even local Apartment Associations and Chambers of Commerce offer searchable listings on the Internet. Many such services charge a fee to properties which advertise on them.
Of greater significance is the fact that property owners and managers recognize that a homepage on the World Wide Web is an inexpensive way to directly communicate with both local and out of town apartment shoppers, and are beginning to create more informative homepages. Property owners and management companies will soon offer maintenance and service information on the Internet. Residents will be able to pay their rent, file a service request, renew their lease, give notice to terminate, and order electric or cable TV service, all over the Internet.
Properties which have their own homepage can place it on multiple search engines or aggregators to increase the number of visits to their page. Also, it is possible for the property to publish its rental information on multiple online services. One online service might offer a great “virtual tour”, while another service might offer better maps or the ability to display floor plans. This redundancy of information is creating it's own marketplace and competition.
The prevailing online service business model is to have the property pay to be listed on the site and to permit potential tenants to view the information for free. The service providers charge these fees to cover their sales and marketing costs and to cover overhead. These fees, together with the incidental revenues from banner advertising, create their entire income stream.
The Internet has given the apartment search process a new dimension. Issues of location, pricing, features, amenities, services, and availability can now be considered before the tenant contacts the property. Tenants can even view virtual tours of properties online and thereby reduce the amount of time they spend physically touring. Emplo
Good Robert O.
Greenwood Daniel
Skinner Nathan C.
Hewitt II Calvin L.
Paul A. Beck & Associates
Trammell James P.
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