Creating a Sense of Urgency to Lease
Digested from Multifamily Inside
Even if you have plenty of vacant units, tactics are available to create demand.
Scarcity is a great selling tactic. Regardless if the product is craft beer, sports tickets or rare automobiles, the more scare a product is the more likely people will throw caution to the wind (assuming they can afford the product) and buy it.
The same is true with apartments, writes Lori Hammond for Property Management Insiders. Simply telling a prospect that the longer they wait, the less likely the apartment they want will be available can help to close a lease.
“Depending on the volume of vacant apartments, there may be a variety of possible closing tools,” Hammond writes. “Every day that passes between the visit date, and the pre-lease or move-in date allows the opportunity for an individual to choose another location. Getting a lease signed closes that door, it may involve a few days of free rent, but in return is the commitment of a year lease.”
While urgency can be a harder sell when a lot of vacant units are available, Hammond suggests using a hot list, which only shows the leasing teams the units available to sell that week (not the entire group of empty apartments).
“This can limit information preventing a lease on a home that is not ready or being distracted with future availability,” Hammond writes. “On the hot list, the supply will reflect a limited selection of each unit type. This information allows the leasing staff to be absolutely focused on a limited supply.”