Friday, 29 July 2011 15:37

Detroit Apartment Leasing - Lead to Lease

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The Lead to Lease funnel

In this day and age, some apartment communities face high vacancy rates.  In order to turn around the vacancy at a large community, you need a great marketing plan.  This plan should start with a realistic understanding of the volume of leasing traffic (phone, internet, walk-in) that is needed to drive the end results of increased occupancy.

 

At Silverside Management, we like to start out with what we call the Lead to Lease funnel.  Every step of the sales process has a certain yield.  If you understand these yield points, you are better positioned to make adjustments and improvements to your lease up process and results. 

 

Below is an example of a community of 484 units, with only 220 units occupied to start.  The goal, of course, is to lease up quickly as possible.  Based on our local market knowledge, we have mapped the predicted move in rate with the traffic. 

 

In other words; how many times does the phone need to ring for me to achieve a lease?  If the move in rate stagnates, this process allows us to quickly identify how we can improve.  Sometimes it’s the leads might not come in at the proper rate, other times the leasing agent might need more training to close more sales.   As a resulte, we might need to adjust our pricing, or make changes to our product.

 

What’s important as a Detroit Property Manager is that you understand the market and quickly identify areas for improvement, and make the adjustments to impact the change.

  1. Lead to Lease Funnel

 

Total Units

484

Occupied Units

220

Sep-10

Oct-10

Nov-10

Dec-10

Jan-11

Feb-11

Mar-11

Leads

Calls

181

300

500

600

600

600

600

Internet

200

200

200

200

200

200

200

total leads

381

500

700

800

800

800

800

Lead to Appointments

Calls

50%

50%

50%

50%

50%

50%

50%

Internet

15%

15%

15%

15%

15%

15%

15%

total appts

120.5

180

280

330

330

330

330

Appointments to Visits

%

75%

75%

75%

75%

75%

75%

75%

total visits

90.375

135

210

247.5

247.5

247.5

247.5

Visits to Applications

%

50%

50%

50%

50%

50%

50%

50%

total applications

45.1875

67.5

105

123.75

123.75

123.75

123.75

Application Approval

%

25%

25%

25%

25%

25%

25%

25%

total approvals

11.296875

16.875

26.25

30.9375

30.9375

30.9375

30.9375

Approval Follow-Though

%

85%

85%

85%

85%

85%

85%

85%

total move-ins

9.6023438

14.34375

22.3125

26.296875

26.296875

26.296875

26.296875

Move outs

Renewals Coming

5

5

5

5

5

5

5

Renewal Rate

50%

50%

50%

50%

50%

50%

50%

renewal move outs

2.5

2.5

2.5

2.5

2.5

2.5

2.5

evictions

5

5

5

5

5

5

5

total move outs

8

8

8

8

8

8

8

total move-ins

10

14

22

26

26

26

26

beginning occupied

220

222

228

242

260

278

296

ending occupied

222

228

242

260

278

296

314

% occupancy

46%

47%

50%

54%

57%

61%

65%

Read 3261 times Last modified on Thursday, 29 September 2011 20:57
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