High Performance Leasing
Leasing is one of the key areas in Property Management and it’s almost certainly linked to Rent Roll growth. Property Management businesses which have outstanding Leasing systems and practices grow much faster than those who do not.
This makes sense when you think about it because Landlords become anxious when properties become vacant and look for Agencies that can rent their properties faster.
I am absolutely passionate about Leasing! Here are some key tips which hopefully might be of help to you and your team:
- Don’t overcomplicate Leasing – it is simply business development for Tenants. Matching quality Tenants to homes that suit them as quickly as possible and keeping Landlords engaged in the process.
- ‘Coach’ your Landlords through any market conditions. Keep them informed with regular leasing updates – what is happening in the market right now and what you are doing to make sure their yield is maximised. Avoid any doom and gloom statements. Skilled Leasing people talk positively and don’t deliver doom and gloom.
- Don’t own the market – markets always rise and fall. Your stockbroker doesn’t stay up night worrying about the price of your bank shares. He or she knows the market rises and falls. Our job is to help get the best solution for our Landlords in any market.
- Use excellent dialogue at the beginning to set up your Landlords for what WILL happen and what COULD happen with the leasing experience.
- Never use the words ‘drop’ or ‘reduce the price’ – these are negative words. Use words such as change the price, put a new price on it or reposition the price. These are positive words and you be likely get a positive result.
- Study the available properties weekly at your meeting and ask the question, ‘What do we need to do to rent this property in 5 days?’ Create an action sheet and do the actions. Note: it’s nearly always the case that the price isn’t right, so become skilled at letting Landlords know early that prices may need to be adjusted to maximise their yield.
- Measure everything to gather ‘data intelligence’ to make decisions – this is a sales job so measure conversions just like a sales business does. This data intelligence helps you ‘Coach’ your Landlords into the right decision that will secure them a signed Tenancy Agreement faster. Here are some examples of data to measure:
- Enquiries to Groups – through to Applications received – to leases signed are the conversions here
- Measure your vacancy rate daily
- The Average length of stay is a great statistic to measure. Subtract your vacate date from the lease start date over a period of time and you can measure how long on average your Tenants stay with you in each property.
- If you aren’t using Leasing software, chances are your competition is. There is outstanding leasing software available that streamlines all leasing practices. Of course, like all software, you have to make it work for you. A combination of quality human input and technology is a winner in Leasing.
I believe Leasing is not a Property Management job, it’s a sales job. It’s no surprise to me that Agencies who have Leasing specialists are renting homes much faster than those who do not. And, they are gaining the trust of their marketplace as the ‘Leasing experts’. Many of these Agencies are growing their Rent Rolls.
I hope this short article on Leasing is of some help to you and your team.
If you have any questions on Leasing, I’ll be delighted to talk with you further.