Final modified on March twentieth, 2023
By Matthew Kaddatz
In response to the NMHC Quarterly Survey of Residence Circumstances, 66% of companies say that condominium market circumstances of their native markets are looser than three months in the past, which suggests this yr’s leasing season can be extra aggressive than ever. Between slowing lease development, rising inflation, and new condominium development developments getting into the market, now could be the time to evolve your leasing and retention technique to take advantage of demand. Learn on to seek out out the important thing efficiency indicators (KPIs) you need to be monitoring and learn how to optimize your leasing circulation to show leads into leases sooner.
What’s an optimum leasing circulation?
Whereas every property administration enterprise’s leasing circulation might look barely totally different, there are particular steps everybody ought to observe to efficiently convert results in leases. An optimum leasing circulation — one which fills vacancies rapidly — ought to appear like this:
- Promote models
- Talk with leads
- Schedule showings
- Course of purposes
- Display screen tenants
- Signal leases
- Assist handle the move-in
To additional optimize your leasing circulation past these steps, it is best to monitor a number of KPIs. KPIs are vital to guage regularly, as they assist you to raised perceive the well being of your small business and the way you stack as much as your opponents and/or the earlier yr.
Prime three leasing KPIs property managers ought to monitor
KPI 1: Leasing efficiency
The primary and arguably crucial KPI it is best to monitor is your leasing efficiency, with the objective of figuring out which leasing brokers are attracting essentially the most leads and establishing the ROI of your leasing efforts. When measuring leasing efficiency, there are a number of metrics it is best to have in mind, together with:
- Leasing exercise: You want a software that may present you the overall variety of leads, showings, purposes, and leases. Having know-how that tracks this for you permits you and your workers to determine outliers and pinpoint areas for enchancment to maximise your efforts.
- Inquiries by supply: You want to have the ability to attribute the variety of prospect inquiries for particular models, properties, or campaigns to their supply (resembling itemizing websites) so you possibly can consider the ROI of your advertising and marketing efforts and make sure you’re getting essentially the most out of your advertising and marketing spend.
- Future occupancy: That you must measure leases wanted to achieve your 95% occupancy metric with leasing conversions in an effort to give your leasing groups tangible targets to fulfill occupancy objectives and scale back days vacant.
KPI 2: Flip efficiency
The second KPI it is best to monitor is unit flip efficiency, with the objective of turning every unit as rapidly as doable. Unit turns may be difficult, as quite a lot of work goes into transitioning an condominium or single-family residence from move-out to move-in prepared. Some methods you possibly can put know-how to work are through the use of a single system that permits you to monitor flip duties throughout models, coordinate distributors and timing, and handle turn-related paperwork. For those who’re counting on a number of instruments to handle unit turns or are nonetheless utilizing paper-based processes, contemplate transitioning to a totally digital system so you possibly can improve visibility and switch models extra effectively.
As an example, with AppFolio Property Supervisor, you possibly can submit recurring work orders to a unit flip, generate unit flip element experiences, verify the standing of unit turns throughout properties, and talk with distributors proper within the platform.
KPI 3: Renewal efficiency
The ultimate leasing KPI it is best to monitor is renewal efficiency, with the objective of eradicating friction within the renewal course of. Sustaining occupancy is important for achievement. It’s far simpler and extra worthwhile to your residents to remain, as this avoids vacancies, costly and time-consuming turnovers, and the necessity to spend cash on advertising and marketing to draw new renters. Ideally, you wish to make the renewal course of as streamlined and simple as doable to your residents. Under are 5 steps you possibly can observe to strengthen your renewal technique.
- Present versatile lease phrases by permitting residents to decide on the perfect provide for his or her wants.
- Contemplate flat charge renewals to lower the chance of sustaining lease with a purpose to preserve occupancy.
- Convey renewals to the renter — ship, monitor, and countersign lease renewals on-line with a web-based portal.
- Attain out to your residents earlier than their lease ends to see in the event that they’d prefer to renew. Automated digital reminder emails can actually assist with this course of.
- Use information to your benefit by making a renewal abstract report so you possibly can see your renewal efficiency over time.
Leasing season is all the time a busy time of yr to your groups; nonetheless, once you leverage automated and on-line instruments, you possibly can optimize your workflow to show leads into leases sooner. A complete leasing platform, like AppFolio, may also help you and your workforce scale back the variety of days your models are vacant. To study extra about how one can streamline your leasing operations, check out this information.