New construction class A property in an extremely saturated Jacksonville FL. market. The property was located in a less then desirable location which led to under qualified traffic. A majority of the prospects that toured were looking for a price point well below the asking rents for the community.
For the past 90 days, the property had taken in 22 applications, and rejected 17 due to insufficient income or bad credit. A majority of the traffic was from signage.
1. Lower the asking rents of the property or increase the concessions
2. Hire a new Leasing staff
3. Hire CLASS to accelerate the lease-up
The owners chose to hire CLASS in order to avoid lowering their rents and risking potential complications when procuring their permanent financing. The owners also wanted to mitigate the risk of a bad hire.
CLASS knew that the property needed to improve its marketing effort in order to target qualified renters. Additionally, a strong closer was needed to capitalize on any traffic created. Even if prospects were coming in the door, the property was still priced well above other properties in the market.
CLASS implemented the following changes to the leasing and marketing platform
1. Limited the units being offered. CLASS noticed that most prospects were shown 4-5 different floor plans and being offered too many options during the tour. The prospects were aware that this 250+ unit property was practically empty and as a result no urgency was created. CLASS limited the units being offered to only two.
2. Increased the length of time the property would hold an apartment. After showing the owner the statistics on the increased search time for class A properties, we extended the amount of time a specific unit would be held from 30 days to 60 days.
3. Increased the amount needed to hold the apartment. CLASS knew that by increasing the amount needed at the time of lease, we would eliminate the fall off problem plaguing the property by only renting to those prospects that were truly income qualified. This also mitigated the risk of holding an apartment for more than 30 days.
4. Eliminated specials from all marketing material and refused to give them out prior to the closing table. CLASS understood that the type of prospect who was concession shopping was not part of the target market. By not advertising the specials, a better demographic of renter was walking through the door.
5. Increased outreach marketing. Prior to the arrival of CLASS, the outreach marketing had been very limited. CLASS implemented a diligent approach to targeting preferred employers. The CLASS Leasing Specialists would make daily trips to visit these employers, drop off lunches to prospects at work, and market to local realtors offering an aggressive referral fee.
By implementing these 5 strategies, CLASS was able to increase the traffic and significantly increase the number of leases. Over the next 40 days, CLASS leased over 70 apartments and reduced the fall off to below 25%.
Totals for dates 2012-03-07 to 2012-04-19
|Phone Calls||Walk-Ins from Phone Calls||Conversion Ratio|
|Walk-Ins||Qualified Walk-Ins||Leases||Closing Ratio|