Two years since the start of the pandemic apartment leasing is returning to pre-COVID levels. Data sourced from PMS integrations shows this momentum with a 136% jump in leads and 20% more applications since the same time last year. Google searches for “apartments for rent” have also seen a 22% uptick since the start of 2022.
As a result, multifamily firms are ramping up their efforts to win over prospective residents by adopting new tactics and promotions to attract, convert, and delight renters.
At the same time, however, the industry is facing the ongoing challenge of staff shortages. Leasing success in today’s world also means making day-to-day operations easier for property teams, so adopting leasing technology solutions isn’t a nice to have anymore—it’s a must.
With the wide variety of options available to renters and a market continually saturated with deals and discounts, what should operators deploy to boost lead conversion without sacrificing NOI?
Gift cards, deposit waivers, and first-month-free discounts have historically been popular economic incentives operators leverage to drive lease conversion rate. In our 2021 Apartment Visionaries Survey, 60% of property-level respondents said that offering free incentives improved the likelihood of lease signing; but at what cost?
Among corporate leadership, 69% of respondents cited these financial concessions as hurting economic occupancy the most. This disconnect illustrates that while lease concessions may help draw in residents, converting leads should not be the only objective of your firm’s leasing season strategy.
If the majority of lead conversions are driven by economic incentives, yet economic occupancy suffers—it’s time to reconsider your strategy. To really succeed, operators need a strategy that maximizes NOI, reduces bad debt, and protects economic occupancy.
For multifamily operators, 2021 was another year filled to the brim with technological acceleration and adoption. Equally, renters are getting savvier and their demand for convenience and flexibility is growing.
Not all technology solutions are created equal, and some can often cause more problems than they solve. It’s paramount that operators invest their time and resources in the right tools to achieve peak performance and drive the biggest returns.
To make your job easier, we have shortlisted four technologies that streamline the leasing process, improve lead-to lease conversion, and ultimately drive NOI:
1. Deposit Replacement Insurtech Platform – A data-driven risk platform that replaces security deposits with lease insurance helps convert leads while also sufficiently protecting properties against rent loss and damage.
2. Chatbot Functions – With the help of chatbots, operators can automate engagements with prospective residents and gather more applicant information upfront, producing higher quality leads.
3. Artificial Intelligence Solutions – AI solutions automate leasing operations and gather insights about different touchpoints renters engage in prior to property visits, helping property managers increase their lead-to-lease conversion rate.
4. Self-Guided Tour Technologies – Most multifamily properties have deployed some form of self-guided tour platform, so this technology has now become a must-have in order to stay competitive.
To learn more about the four technology solutions and how they can make a real impact on your renter experience and deliver a competitive advantage to drive more lease signings, download the white paper:
Identify where your opportunities are this leasing season with a free NOI assessment. Learn custom insights into bad debt reduction, NOI lift, and asset value appreciation to help you build a successful leasing season strategy and better equip your teams to achieve peak performance:
