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.
- 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 | ||
