The subject property was a student property struggling with high staff turnover and static leasing activity. With an occupancy just shy of 50%, the property was 20 percentage points behind its competitors due in large part to the inconsistent office staff and high turnover. From January to July the property had been preleasing at an average rate of 45 beds per month. The property consisted of 644 beds which leased at an average rent of $250/bed.
CLASS was hired to increase the leasing velocity while also maintaining a consistent presence in the office. Within 45 days, CLASS had secured leases on 181 beds. Had the property not retained CLASS to assist with leasing, it could have potentially missed out on an additional 117 bed spaces. This means that instead of being at a forecasted occupancy of 58% by September, the property jumped to an occupancy of 77%.
COST OF CLASS VS. INCREASE IN ANNUAL RENT REVENUE
The additional 117 move-ins created by CLASS will generate an additional $29,250 of monthly income and add $234,000 of rent revenue throughout the academic year for the property. When compared with the cost of CLASS ($31,700) the ROI for utilizing CLASS will be $202,300.