PROPERTY OVERVIEW:

The subject property was struggling to generate and close on qualified traffic.  Prior to the arrival of CLASS, the property had secured 10 move-ins in a 90 day period.  The property was sitting at 75% occupancy with rents averaging $787.00/unit.  The owner enlisted the help of CLASS in order to increase the occupancy.

STRATEGY:

CLASS recognized that the property needed to improve its marketing effort in order to target qualified renters.  Additionally, a strong closer was needed to capitalize on any traffic created.  Many of the competitors in the area were offering large concessions and move-in specials however CLASS felt that the product and price point were both sufficient.  Instead of concessions the property needed a diligent outreach marketing effort and leasing strategy.

IMPLEMENTATION:

1. Tour Route Logistics:  The property had a great model, but it was not being used.  Instead, prospects were being shown available units.  Other properties in the area utilized this strategy so prospects were requesting to see their actual unit.  The units being shown were sometimes dirty and it was making a bad impression on prospects.  CLASS would inform prospects that the property was filling up and the only thing they could see would be the model.  This minimized the number of units being shown, allowed CLASS to control the tour route and keep it clean, and made use of a fantastic model.
2. Minimized Units Being Offered:   CLASS would only offer two units to each prospect.  This created additional urgency and simplified the decision making process.  Prior to CLASS, many unit types and variations were being offered to try to give prospects all of the possible options.  This was overwhelming and caused prospects to leave without leasing.
3. Follow-up:  CLASS began a diligent follow up program that involved hand written thank you notes, emails, texts, phone calls and visiting the prospects at work with food and gift baskets.  CLASS would also get the contact information of other decision makers (family members and friends) and would contact them to sell them on the value of the community.
4. CLASS solicited reviews from residents in order to boost the online reputation and to leverage the good reviews into marketing material.  This included creating a “resident testimonial” flyer that was very well received by prospects.  CLASS knew that prospects trusted residents more than an owner or manager so we wanted to provide them with some honest resident feedback.
5. Craigslist:  The property had only been posting on Craigslist one or two times a week.  CLASS began posting 5-8 times/day and immediately began to increase the traffic contacting the property.
6. CLASS noticed that the property did not have a property Google Place Page.  This was set up and was instrumental in generating reviews, providing directions to the property and enhancing the overall online presence of the community.
7. Outreach Marketing:  CLASS began a detailed daily outreach marketing campaign that involved flyers at local businesses, water bottles with the property logo, pizza box toppers etc.  This increase in outreach marketing directly resulted in increased traffic and leasing activity.

RESULTS:

90 day results with CLASS:  43 Move-ins.

CLASS was able increase the monthly unit absorption rate from 3 to 14 move-ins/month.  This resulted in 33 additional move-ins and $311,652 of additional annual rent revenue.

CLASS 90 day rent revenue  (less)  Client 90 day rent revenue  = $311,652

Less CLASS fees –                                            – 33,870

Less CLASS expenses-                                     -$8000

= $269,782

Occupancy with vs. without CLASS. (Assuming absorption rate remains constant).

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Annual Rent Revenue Generated during period with vs. without CLASS (assuming absorption rate remains constant) Click to Enlarge

Additional Rent Revenue Generated with CLASS vs. Cost of CLASS Service.

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