Compiling and analyzing leasing data isn’t easy. With so many different leasing performance metrics out there, it’s hard to know which ones you should focus on to measure whether your current leasing efforts are successful. To get the insights you need to develop an appropriate action plan and maximize your leasing performance, you need to make sure you’re measuring the right metrics. Beyond simply calculating your current occupancy rates, here are three other important leasing performance metrics you should keep an eye on:
1. Leasing Activity
Leasing activity metrics such as your total number of leads, showings, applications, and leases for a given time period are valuable in determining how your properties are performing as a whole. It’s essential to compare your leasing activity and conversions across not only properties, but also regions and team members, so you can identify outliers and pinpoint areas of improvement.
2. Inquiries by Source
Another metric that’s essential to measure is your inquiries by source. This can be achieved by calculating the number of prospect inquiries for specific units, properties, or campaigns and attributing them to the source they came from, such as Zillow, Apartments.com, or your website. With this information you can clearly understand the ROI of your marketing spend and optimize your presence on sources that generate your most valuable leads.
3. Future Occupancy
Forecasting future vacancies is a vital metric for property managers looking to minimize the number of days a unit is unoccupied. Viewing future occupancy shows the percentage of units that will be occupied within a future date range accounting for future move-ins, units on notice, and units with expiring leases. Related to this, measuring the leases needed to reach 95% metric combined with leasing conversion metrics can give your leasing teams tangible targets to ensure they achieve their occupancy goals.
Manually measuring and compiling all of these metrics from multiple sources is time-consuming and can lead to human error. Having a software system that automatically measures these key leasing metrics and organizes everything into a single view can save you and your team a lot of time, money, and resources. Instead of wondering about which metrics you should measure, and arguing about incomplete or inaccurate data, your team can spend their time focusing on developing action plans and achieving your leasing goals.
Technology like the Leasing Metrics Dashboard, available with AppFolio Property Manager PLUS, eliminates the time-consuming, error-prone data collection process by continuously compiling data within a single system, so you don’t have to pull data out from different solutions and try to make it work together. In addition, it’s more reliable, since all of the data is coming from a single, reliable source, rather than multiple disparate systems. Everything is measured in real-time — from leasing activity and marketing channel ROI to current and future occupancy — so you can get the data you need to make quick decisions. You can also customize and filter information by property, group, or owner, and see how they are currently performing and how they are projected to perform in the near future. This way you can better understand the overall health of your properties and optimize your leasing team performance.
Between showing units and compiling data, leasing teams have a lot on their plates. By implementing software that measures the most important metrics and compiles the data into a singular hub that is always up to date with current numbers, you can save time, reduce friction, and gain greater insights into how your properties are performing and where you can capitalize on opportunities.