RESULTS: JULY CLASS B ACQUISITION
The subject property was a 514 unit class B community that had been recently purchased. The property was struggling to generate qualified traffic, had high staff turn-over and did not have a great reputation. CLASS was brought in to help accelerate the leasing activity. Prior to the arrival of CLASS, the property was 65% occupied and had generated around 10 net leases per month the past three months. The rents averaged $705/month.
CLASS was able to increase the unit absorption rate from 10 leases per month to 28 leases per month. In just 40 days CLASS was able to secure 37 approved leases.
RENT REVENUE PER MONTH-Click graph to enlarge
WITH VS. WITHOUT CLASS (assumes absorption rate w/out CLASS remains constant)
*The increase in leasing activity resulted in 19 additional move-ins in 40 days.
*Additional annual rent revenue generated by these move-ins = $160,740 ($13,395/month)
COST OF CLASS VS. INCREASE IN ANNUAL RENT REVENUE-Click graphs to enlarge
Total cost of CLASS Service = $21,500 (includes travel related fee’s)
Additional Rent Revenue generated by CLASS = $160,740
CLASS ROI: $160,740 – $21,500 = $139,240