The subject was a distressed property located outside of Cincinnati, Ohio. The property had a terrible reputation for crime and gang activity and was poorly managed. The asset was acquired by a local company that invested a significant amount of capital for both an interior and exterior renovation. The property underwent a name change and built a new leasing office.
The first building came online in October 2012 and during the next 90 days the property captured 21 leases; however 16 were rejected due to credit or criminal backgrounds. After receiving only 1 additional approved lease during the first 3 weeks of January, the owners decided to enlist the help of CLASS.
CLASS recognized that the property was suffering from a reputation issue that was resulting in under qualified traffic. Additionally, a strong closer was needed to overcome the property’s reputation and other objections such as the lack of washer and dryer connections in the units.
CLASS needed to get the word out about the changes to the property and drive more qualified renters in the door. CLASS also needed to find a solution to the washer and dryer objection, particularly since the onsite laundry rooms were still under construction and the few existing residents were required to drive offsite to a local Laundromat.
CLASS implemented the following changes to the leasing and marketing platform:
1. CLASS set up a program with a local dry cleaner and Laundromat where residents could drop off their laundry every week at the office and it would be returned there in the afternoon. This service was provided free of charge for all residents until the laundry rooms were operational and served as a great selling feature to help overcome any objections.
2. Increased social media platforms: CLASS knows that today’s renters rely heavily on their peers when it comes to purchasing decisions. They are more likely than any other group to research social media platforms of a community and search for resident reviews. CLASS consistently updated Facebook and Twitter pages which advertise the specials, communicate with residents and prospects, and reach out to local businesses.
3. CLASS implemented an outreach marketing plan in the form of tear-off flyers, ¼ page flyers, and full page floor plan sheets. CLASS also ordered post-it note flyers which were quickly distributed to target areas. CLASS made sure to put in several hours of outreach each week and made the effort to speak to as many employees as possible to give short pitches about the property.
4. CLASS established a preferred employer program. This helped target local students and local businesses. CLASS also set up a resident referral program.
5. CLASS ensured that the property was properly listed on search engines like Google and Bing and deleted all information prior to the rehab. CLASS also generated numerous positive reviews from both residents and prospects to improve the online reputation of the community.
6. CLASS created a direct mailer which targeted local qualified residents and informed them of the positive changes to the community.
By implementing these strategies CLASS was able to significantly increase traffic and leases. After only receiving an average of 2 applications per week over a four month period, CLASS was able to secure the following numbers:
|Week 1||Week 2||Week 3||Week 4||Week 5||Week 6||Week 7|
|2 leases||2 leases||3 leases||6 leases||6 leases||8 leases||8 leases|
RENT REVENUE PER MONTH
WITH VS. WITHOUT CLASS
*assuming property continued the current unit absorption rate
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COST OF CLASS VS. INCREASE IN ANNUAL RENT REVENUE
*The increase in leasing activity resulted in an estimated 30 more leases than the property would have obtained without CLASS.
*Annual rent revenue generated by these additional move-ins = $261,000.00
*Total cost of CLASS Service = $36,000.00
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