7 Ways to Improve the Lead-to-Lease Conversion Process for the Properties
Running a successful property management business requires acquiring more tenants so that the number of vacant spaces is less than the number of tenants living in the apartment or building. Therefore you need to keep your lead-to-lease conversion rate high if you want to earn profits. Before we dive into the topic let me explain to you what is leads- to- lease conversion rate.
Lead-to-lease conversion rate is basically how many leads who apply to your apartment convert into tenants or a leaseholder. Although the term sounds easy it is actually tough to convert leads to leaseholders. Therefore I have provided the top 7 ways that you can use to increase the leads to lease conversion rate.
- Strategizing an Efficient Marketing Process
If you want to increase your tenant conversion rate and increase more leads then you should start strategizing on your marketing process. An efficient marketing process helps to save the extra cost and also attract potential leads which may convert into tenants. At first, you can start by creating listings. Although keeping track of each listing individual can be time-consuming but through the right Property management software, you can keep track of all the listings from one place. You can also keep track of your leads so that you can invest your capital to enter the right area so that you can attract more leads.
- Using Technology to Track The Entire Conversion Process
Technology has created a big impact on our lives. Everything can be accessed through your fingertips, Buying daily items like groceries to purchasing a car can be done through the internet. It has also completely changed the real estate sector. Most of the users search for an apartment or building through the internet. Taking your business online has lots of benefits especially during the covid- 19 pandemic, when most of the real estate businesses were forced to take their business online otherwise they won’t survive. Implementing technology not only helps you attract new leads but also helps to ease the whole selection and conversion procedure from a lead to a tenant.
As mentioned before, The recent pandemic has completely changed the way we look at the whole real estate industry. People are mostly stuck in their house due to lockdown while others don't tend to leave their house until it is required. Therefore investing in new technologies like 3D tours and live virtual tours will help you attract more leads. Through this technology, you will be able to attract leads from outside your city also. Publishing high-resolution photos also help you attract more visitors (According to a study using high-resolution photos helps to convert your leads 32% times faster)
- Having clear communication about Payment Dates:
Having clear communication about the payment amount and date to pay rent is crucial to avoid late payments. You can follow it by mentioning it in the lease agreement. You can also send reminders about rent payments 3-4 days before the deadline by sending notices through post or emails. If the tenants are fully informed then they won't forget to pay rent on time.
- Creating penalty and rewarding policies to combat late payment of rents:
If the above three tips don't work then you should create a penalty clause in the lease agreement where the tenants have to pay 5 or 10% more on the agreed rent amount. You can also create a reward clause that if they pay the rent before the last date or in advance then they get a 4% discount on the current month's agreed rent. These policies will increase the chances that the tenants pay the rent amount beforehand.
- Responding to Rental Inquiries Immediately
Responding to the rental inquires is one of the most important parts if you want to acquire more tenants. According to a study, Replying to your lead's inquiries within 1-2 minutes helps you to win the lease and also gain an edge over your competitors. Although replying to them once won't work, you have to follow up regarding the inquiries. It is recommended to follow up at least 5 times in four days. Replying to each of the inquiries could be a lot time-consuming therefore you can automate the task by installing AI chatbots.
- Hiring Services from a Lease Contact Center
As mentioned above you need to contact your leads 5 times in 4 days. Contacting each one of them is time-consuming therefore you can automate the task by hiring services from the lease contact centers. They contact the leads through their preferred mode of communication channel and address any other issues faced by the leads.
- Automating the Screening Process
Successful tenant conversion not only depends on the marketing techniques but also on the speed of completing the entire screening process. Therefore in order to speed up the screening process landlords can use property management software. Property Management software's AI feature helps to screen through all the tenant files in a short amount of time.
- Using Electronic Lease-Signing and Different Payment Channels
Using new technology as Electronic lease signing has improved the whole process of lease signing and made it less time-consuming. Therefore investing in electronic lease signing will help the landlord to get more conversion in tenants and decrease the vacancy rate on the apartment/building. Keeping different payment channels is beneficial because tenants can pay you the amount faster through their preferred channel. If you want to save time and resources then you can automate most of the process through the property management software. At property360degree we provide you the solution through our property management software which will help you to manage your property and at the same time you can keep track of various activities like managing you leads, automated notifications, keeping you landlords informed about your efforts, screening processes, Payment transactions, and many more!