At last check the vacancy rate in the GTA
was hovering at 2.7%, and has been up considerably right
across Canada. Considering the numbers provided by the
CMHC and other research firms, if you're an owner with
a vacancy rate higher than 3%, chances are the marketplace
isn't your problem. In our experience with many owners
facing the same situation, we've found it to be a combination
of the following:
Anemic Marketing: Gone
are the days when a simple ad in the classifieds along
with a generic "For Rent" sign was enough to
bring in the traffic needed to quickly lease up a site.
Now owners are facing aggressive competition combined
with many concessions ranging from a sign-up bonus to
a months free rent yet many owners have changed little
about their marketing strategies. A well-planned marketing
plan incorporating innovative ideas is the first step
in boosting occupancy without having to resort to concessions.
If you're giving away freebies, then you haven't given
enough thought to marketing.
Poor Salesmanship: Owners
need to realize that leasing agents are in fact salespeople
and therefore must take a sales approach to renting apartments.
Considering the competition and state of the marketplace,
an agent can no longer just answer the phone and show
apartments they have to go beyond the basics and ask for
the sale. Making use of a targeted leasing seminar that
covers everything from telephone techniques to closing,
along with ongoing refresher courses can help turn an
average agent into a first class salesperson. A training
seminar that focuses on closing techniques can help increase
your community's closing rate by over three times than
without one.
Infrequent Evaluation: The simplest way to measure
the effectiveness of your leasing staff is to have them
anonymously mystery shopped. Shopping your agents will
improve your front line performance, and help you reduce
one of your biggest expenses: loss due to vacancy. Reduce
your advertising costs by teaching your agents how to
make the most of every call and how to entice more callers
to visit your community. It costs a lot of money to make
the telephone in your leasing office ring. Don't you want
to know how those calls are being handled?
Identify and Correct Problems:
A good mystery shopping report will identify your front
line's strengths and weaknesses, allowing you to focus
attention on problem areas. Ultimately, the report should
provide guidelines on how to teach your front line how
to increase your traffic numbers, the number of applicants,
and ultimately, your occupancy percentage.
Derek Lobo is CEO of DALA Group of Companies,
a consulting firm specializing in products and solutions
for the multi unit industry. A noted speaker and trainer,
his expertise has helped hundreds of owners across North
America through his roster of vertically integrated services
aimed at maximizing a portfolio's bottom line. For additional
information about DALA, contact Derek via email: dlobo@dala-inc.com or by phone at 1-800-898-0347 x13.
