MANAGEMENT
ernest f. oriente | the coach, power hour
Can You Afford To Lose $230,400 In
Leasing Revenue?
O
uch! $230,400 in annualized leasing
revenue is being lost by apartment
communities around the nation! This
is happening because 20 percent of the
calls coming from future residents are being missed,
which is silently draining the performance of the
properties you own/manage.
Using the call tracking system of an industry
vendor as a resource, this article will summarize
our research from 863 apartment communities in
33 states and the statistics below on missed calls
are startling!
SUMMARIZING THE NUMBERS
Using the call tracking system of an industry
vendor for our research we evaluated 192,609 inbound telephone calls placed by future residents to
863 apartment communities over the last 30 days.
Based on this statistical information, 20 percent
of the total calls went unanswered by these on-site
leasing teams. This means 38,521 future residents
did not reach a leasing professional the first time
they called one of these apartment communities.
Based on a national average rental rate of $800
per month, this means 30 million dollars in potential new resident revenue could not be served when
they first contacted the apartment community of
their choice. This also means this prospect might
not be calling back as industry research has told us
that a person shopping for a new apartment has a
list of 7 to 10 communities to contact before they
place their first call.
Tip From The Coach: The lost leasing revenue,
based on the dollars above, is staggering. Be certain
your telephone systems can handle the volume and
velocity of telephone calls received at the apartment
communities you manage. In addition, a number of
companies can provide your leasing teams with the
telephone number for every missed call placed by future
residents. By returning these missed calls in a timely
fashion, your leasing teams can easily recapture what
is otherwise an enormous loss of leasing revenue. Once
you have a vendor who can provide this service for
your property management company, then compare the
national statistics in this article with the statistics at
the properties you manage or own.
Ernest F. Oriente, a business coach since 1995, a property
management industry professional since 1988--the author
of SmartMatch Alliances--and the founder of PowerHour...
[ www.powerhour.com and www.powerhourseo.com and
www.pirmg.com
www.aamdhq.org
May15.indd 33
CALCULATING THE LOST LEASING REVENUE:
Here’s a summary of our research:
1. An average apartment community receives 240 calls per month as a results
of their marketing efforts to future residents.
2. Since 20 percent of these calls went
unanswered by on-site leasing professionals, this means 48 calls from future
residents were missed.
3. Based on national statistics, six of these
48 calls from future residents, or 12.5
percent, would have been converted
into an appointment and a leasing tour.
4. Based on six leasing tours with future
residents, two of these tours, or 33 percent, would have been converted into
a lease.
5. If an apartment community loses two
leases this month, at an average monthly rental rate of $800, this apartment community will lose $19,200 {$800 x two
leases x a 12 month lease} in annualized leasing revenue.
6. f this trend continues, this apartment community will lose $230,400 {$19,200 x
I
12 months} over the next 12 months in annualized leasing revenue.
I know these dollars seem big---and they are! The cost of missed telephone calls and
lost leasing revenue is a silent drain on the success of the apartment communities managed/owned by your property management company.
CALCULATE YOUR LOST LEASING REVENUE:
1. Our apartment communities received _____________ in-bound marketing calls
this month.
2. f these in-bound calls, we are not able to answer ____________ percent.
O
3. Based on our company average, _______ of these _______ missed calls from
future residents, or ________ percent, would have been converted into an appointment and a leasing tour.
4. ased on our company average, from these _______ leasing tours with future
B
residents, _______ of these tours, or _______ percent, would have been converted into a lease.
5. If we lost _______ leases this month, at an average monthly rental rate of $_______,
our apartment communities will lose $_________ in annualized leasing revenue.
6. If this trend continues, we will lose $___________ over the next 12 months in annualized leasing revenue.
MAY 2015 • TRENDS | 33
5/14/15 6:47 AM