The subject property was a student property struggling with high staff turnover and static leasing activity. With only a little over 2 months remaining before the school year began, the property was sitting at an occupancy of just 23%. From January to July the property had been preleasing at an average rate of 34 beds per month. The property consisted of 863 beds which leased at an average rent of $786/bed.
CLASS was brought on board to significantly ramp up leasing efforts. In 70 days, CLASS secured leases on 223 beds and increased the leasing rate by 164%. Had the property not retained CLASS to assist with leasing, it would have potentially missed out on an additional 121 bed spaces. Because of CLASS’s assistance, the property received an occupancy boost of 25.8% in a little over 2 months.
COST OF CLASS VS. INCREASE IN ANNUAL RENT REVENUE
The additional 121 move-ins created by CLASS generated an additional $95,106 of monthly income and added $1,141,272 of additional annual rent revenue for the property. When compared with the cost of CLASS ($98,625) the ROI for utilizing CLASS will be $1,042,647.