This article was posted on Monday, Jun 01, 2015

Ouch!  $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!  Plus, we have provided a tool for you to calculate the lost leasing revenue for your specific properties and to share the results with your leasing teams.  

Summarizing the Numbers: 

Using the call tracking system of an industry vendor for our research we evaluated 192,609 in-bound 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.    

Calculating the Lost Leasing Revenue 

Here’s a summary of our research: 

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  1. An average apartment community receives 240 calls per month as a result 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. If this trend continues, this apartment community will lose $230,400 {$19,200 x 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.  To calculate the lost revenue at your apartment communities, please fill in the blanks below.  When you are finished, E-mail it to [email protected] fax it to 435-615-8670 and we will schedule a free 30 minute coaching call to review your statistics and to share our specific recommendations. 

    1. Our apartment communities received _________ in-bound marketing calls this month.
    2. Of these in-bound calls, we are not able to answer _________ percent. {Remember, 20 percent is the national average.}
    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. Based on our company average, from these ____ leasing tours with future 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.  

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.

Want to hear more about this important topic or ask some additional questions about how to accurately track your future resident telephone calls and evaluate your marketing? Send an E-mail to [email protected] and The Coach will E-mail you a free TeleForum invitation.  

Ernest F. Oriente, a business coach since 1995, the author of SmartMatch Alliances and the founder of PowerHour has a passion for coaching his clients on executive leadership, hiring and motivating property management SuperStars.  He provides private and group coaching for property management companies around North America, investment banking services and executive recruiting services.  To subscribe to his FREE property management newsletter go to www.powerhour.com call 435-615-8486 or  E-mail [email protected]

 

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