What Exactly is the "Make-It-Rain Formula"?
Apartment lease ups are not always easy to crack the code to. The overall performance of your lease up will highly depend on who your leasing specialists are.
At Wise Owl, we have our leasing specialists go through rigorous sales training in order to ensure that our lease ups get a lot of leasing activity.
We have noticed throughout the years that a lot of management companies struggle with finding talented leasing specialists. So in turn, their portfolios will struggle.
Sofi, Broker and owner of Wise Owl Realty, wrote, The Make-It-Rain Formula for Every Apartment Lease Up. Sofi goes over a formula that every apartment complex should keep in strong consideration when hiring and training leasing specialists.
The Make-It-Rain Formula: Volume x Sales Conversion Percentage = Leases
Leasing specialist positions are known to be starter jobs that pay close to minimum wage in some areas, with some bonuses.
Because of this, it is hard to expect that your lease up will move at a decent pace.
If your building is spending thousands of dollars on marketing each month, you are going to want to utilize the most from the traffic.
For instance, let's say that your building is getting 10 tours each week. The amount of leases you will get that week will highly depend on the sales conversion of your leasing specialist.
So if your leasing specialist can convert at a 30% sales conversion rather than a 10% sales conversion, you will be much better off. Overall, you will lease your building much quicker if your leasing specialist can convert at a higher percentage. And we didn't even have to touch the marketing spend to increase volume.
Not only would you save more money on marketing costs, but you would also increase your occupancy rate at a much quicker speed.
So let's crunch the numbers here, and let's say that we have Leasing Specialist A and Leasing Specialist B.
Leasing Specialist A: 10 tours x 10% sales conversion = 1 lease
Leasing Specialist B: 10 tours x 30% sales conversion = 3 leases
All we did here was increase the sales conversion percentage, and all of a sudden you have a more successful lease up.
Here at Wise Owl, we apply this formula to everything that we do. That's why we put all of our leasing specialists through a very rigorous training program before they start doing sales at your building.
Our leasing specialists are the best because they are trained by the leading experts in the apartment industry.
If you are interested in applying this formula at your building or apartment complex, simply fill out a contact form and we will be in touch!