The process of a property lease-up is crucial for new apartment communities. It involves establishing a brand, building a website, and welcoming residents during the time between the announcement of the community and six to 12 months after its opening. Successful marketing, leasing, and revenue decisions made during this period can have a lasting impact on the community's long-term success.
In this guide, we will explore the different phases of a property lease-up and provide insights into strategies that can help property management companies execute a successful lease-up.
Phase One: The As Soon As Possible Phase
The lease-up process begins as soon as the contract for constructing the new apartment community is signed. The initial focus during this phase is on defining the community's identity and building its online presence.
Define Your Community's Identity
Choosing a unique and easily searchable name for your apartment community is essential from a marketing perspective. It should be distinct, easy to spell, and memorable for prospective residents to find your community through an online search. Avoid using common names that are already being used by other communities to prevent confusion.
Choose a Domain Name for Your Website
Selecting a suitable domain name for your community website is crucial. It should include your apartment community's name, be short and easy to remember, and ideally include keywords like "apartments." A ".com" domain is generally preferred.
Create Your Community's Logo and Color Scheme
Developing a brand identity is important for creating consistency in your marketing. Hire a graphic designer to help you create a logo and choose primary and secondary colors that align with your community's branding.
Establish Your Apartment Community's Online Presence
An apartment community's online presence should include a community website, a Google Business Profile, and digital advertisements. Building a "Coming Soon" website and claiming your Google Business Profile early on helps establish authority and credibility. It also allows you to generate anticipation and trust among prospective residents as the community gets closer to opening.
Phase Two: 6 Months Before Opening Day
In this phase, the focus shifts to completing the website design and setting rent levels for each unit that will be available on opening day.
The Six Essentials of a Lease-Generating Website
Your community's website should be designed to convert qualified leads into signed leases. It should have a mobile-first design, feature floorplan-specific pages, include walkthrough video tours, offer influential media content, strategically place calls-to-action, and provide a great user experience.
How to Set Rent Levels in a Lease-Up
Setting rent levels requires determining the base rent for each floorplan type and assessing the value of unit amenities. It's important to be flexible with pricing and adjust rent levels based on demand and lease targets.
Phase Three: 3 Months Before Opening Day
With less than three months until opening day, it's time to start generating leads through digital advertisements and building excitement within the local community.
Build Excitement with Local Businesses
Reach out to local businesses and offer them information about your new apartments. Create a welcome packet, conduct "hard hat" tours, and post construction updates on social media to engage with the community.
Turn On Your Lead Flow with Google and Facebook Ads
Digital advertisements play a crucial role in driving traffic to your community website. Use Google Ads and Facebook Ads to generate qualified leads and increase visibility for your apartments.
How to Think About Your Marketing Investment in a Lease-Up
During a lease-up, marketing spend has a significant impact on leasing velocity. Be prepared to invest heavily in marketing to fill the units quickly. Adjust your marketing budget based on lease targets and monitor the effectiveness of your advertising campaigns.
How to Handle Lease Signings Before Opening Day
While waiting for official certificates of occupancy, you can still take deposits, hold units, and offer leases with a contingency. You can strategically space out lease signings to avoid excessive vacancies in the future. Offer variable lease terms, sign true 365-day leases, or coordinate lease expirations to control future vacancies.
Phase Four: Opening Day and Beyond
Opening day is a momentous occasion, and it's important to celebrate and welcome new residents. However, the work doesn't end there.
When Do You Want the Lease-Up to End?
Monitoring lease signings and setting milestones can help you track progress and ensure timely completion of your lease-up. Staging lease expirations and controlling vacancies can improve efficiency and prevent a cluster of vacancies in the future.
How to Speed Up a Lease-Up
Pricing and marketing are key factors in accelerating the lease-up process. Adjusting rent levels based on lease targets and optimizing marketing strategies can influence the speed at which leases are signed.
In conclusion, a property lease-up requires careful planning, effective marketing, and a well-defined process. By following the strategies and guidelines outlined in this guide, property management companies can achieve long-term success and maximize revenue for new apartment communities.
