Based on the analysis of 1.5 million leads across 4,300 properties in the 2024 peak leasing season, we outlined the key strategies for improving lease conversion rates at every stage of the leasing funnel. The leasing funnel represents the journey a prospect takes from initial inquiry to signing a lease. It can be broken down into three main stages: inquiry, tour scheduled, and tour completed.
The data reveals that, on average, only 8.7% of prospects who enter the leasing funnel by filling out a guest card end up signing a lease. This means properties need about 12 inquiries to secure one lease during peak leasing season. However, top-performing properties achieve a 16.5% conversion rate, requiring only 6 inquiries per lease. What separates these top performers from others?
Let’s observe what the data has to say about the most impactful factors, specifically around lead generation and tours, that ultimately drive more conversions.
Based on the data, the goal at the first stage is to capture as many qualified leads as possible and guide them towards booking a tour. Why is this important? Because prospective renters who schedule a tour are 115% more likely to lease than those that don’t schedule. The data reveals that specific technology and techniques impact a higher conversion rate from inquiry to booked tour:
Once a tour is booked, the next goal is to ensure the prospect takes the tour, as those who complete tours are 63% more likely to sign a lease. Here’s what the data says impacts and drives the completion of a tour:
Intuitively, we probably all sense that technology plays a role in driving conversion at various stages in the leasing funnel. A regression analysis allows us to quantify the impact of different technologies at different stages of the funnel, and the impact is substantial. Properties with a chatbot have 23% more leads and schedule 41% more tours than properties with only a CRM system. Self-guided tours result in 50% more leads and 105% more tours. But having a Contact Center to answer leasing calls has the biggest impact, generating 90% more leads and 125% more tours.
By understanding the leasing funnel and implementing strategies that drive conversion at each stage, properties can significantly improve leasing efficiency, allowing them to reduce marketing spend and achieve higher occupancy. This will be especially important for the rest of 2024 and even during the 2025 leasing season when many regions will still be dealing with oversupply.
To see the full leasing data analysis, watch our on-demand webinar here.
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