The subject property was a class B community struggling with a reputation issue. To overcome this hurdle management began rehabbing the community, but the investment was not transferring to leasing activity. Well into the rehab, the property was sitting at an occupancy of just 63% and averaging only 12 leases per month. In addition, many of these leases ended up cancelling because no application fee was collected. The property consisted of 230 units which leased at an average rent of $545.
CLASS was brought on board to manage the reputation issue while also converting the rehab investment into actual leases. In just 60 days, CLASS secured 62 leases. Had the property not retained CLASS to assist with leasing, it would have potentially missed out on an additional 38 leases. Because of CLASS’s assistance, the property received an occupancy boost of 26.9% in just 2 months.
COST OF CLASS VS. INCREASE IN ANNUAL RENT REVENUE
The additional 38 move-ins created by CLASS generated an additional $20,710 of monthly income and added $248,520 of additional annual rent revenue for the property. When compared with the cost of CLASS ($35,000) the ROI for utilizing CLASS will be $213,520.