Being in property management, you are in the people business. Being in the people business requires the capacity to build relationships. Building relationships requires time. There is no replacement for time. That’s where HCCT comes in; hot coffee, cold tea.
What is the value of one hundred cups of coffee?
What is your lease prospect closing rate? Could it improve with longer customer interaction times? What is the value of one or two additional leases from improvements to the quality and “quantity” of time with prospects?
The beverage represents nothing more than a step along the leasing process; a placeholder to slow down and converse, providing your leasing staff time; time to engage, interact and get to know the prospective resident and for the potential resident to get to know your staff and property.
Granted, in high season when leasing appointments are back-to-back-to back, the interaction time can get crowded. In this instance, it makes sense to staff up rather than shorten the leasing process. Here are two reasons why:
- Every person or family that comes on property has expressed an interest in being there with their time and presence; they deserve your attention.
- Each prospective resident is a potential life-time customer, thus, you are speaking to a person than could potentially lease for multiple years.
There are some properties that have a wait list (more applicants than apartments to rent). In this scenario, when the property management company or owner has several assets in the area, this over-flow of applicants can be re-directed to other managed or owned assets. So the time enlisted in the leasing process, even for a fully leased asset, can still garner financial benefits to the portfolio and goodwill from the prospective resident.
From a marginal return on investment perspective, if one additional lease is captured based on five or ten cups of coffee with prospective residents requiring five added hours of staff time, then for a property that leases at $1,000 per month per unit, the additional revenue is $2,000 per staff hour, or $1,000 more revenue per month.
This is very easy to test at the property level. Staff training is a requirement to assure they understand the game plan and intended results.
This article is intended to be informational only and does not provide legal, financial or accounting advice. http://multifamilyinsight.com