Change In Management: CLASS A Lease-Up By Kristi Mcmillin
Case study
Property overview
The focus of this case study is a class A property with units totaling around 280. The property recently underwent a management change and was struggling to overcome a reputation objection. CLASS was brought in to increase the leasing activity while also stabilizing the leasing process in general. Prior to the arrival of CLASS, the property was leasing at an average rate of about 4.5 leases per week with rents averaging $860/month.
Results
CLASS was able to increase the unit absorption rate from 4.5 leases per week to an average of 6.75 per week. In two months, CLASS was able to secure 54 leases. CLASS also stabilized the leasing process while increasing and refocusing marketing efforts to overcome the reputation issue.
With vs. without CLASS (assumes absorption rate w/out CLASS remains constant)
The increase in leasing activity resulted in 18 additional leases in a span of 8 weeks.
Additional annual rent revenue generated by these move-ins = $185,760 ($15,480/month)
Cost of CLASS vs. increase in annual rent revenue
Total cost of CLASS Service = $44,772 (includes travel related fees)
Additional Rent Revenue generated by CLASS = $185,760
CLASS ROI: $185,760 – $44,772 = $140,988
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