3 Common Myths About Centralized Leasing

After a chaotic few years (despite an uncertain economic future), the multifamily industry is seeing some steps toward normalcy. Occupancy rates stabilized just under 98% (around the long-term average), and we’re experiencing the most apartment construction in 50 years — 1.2 million units for leasing in 2023 and 2024. This good news doesn’t come without caveats. With all this supply coming in, the power balance is tipping back toward renters, who now take longer to make decisions about their next apartment home. And when it comes to multifamily operators themselves, two challenges are top of mind: a 50% turnover rate for leasing staff and operating costs rising as high as 7% to 8%. This means it’s crucial to have a robust, competitive and budget-optimizing marketing strategy in place. Centralization technology is a key piece of such a strategy. But as it’s gotten more popular, myths have cropped up regarding what centralized leasing can and can’t do. Read on to learn about the three most common myths — and the reality behind them. 1. Myth: Centralization replaces onsite staff Let’s get the big one out of the way: Leasing teams assume that adopting centralization solutions means losing their jobs. The opposite is true: Centralized tech performs at its best when it’s used to make leasing teams more efficient and skilled in their roles. “The purpose of centralized leasing is not to take away from our teams but to optimize the experience that our teams are having with residents and prospects,” said Pauline Houchins, Executive Vice President at First Communities. With AI and automation facilitating the more tedious tasks associated with new prospects — such as referring prospects to sister communities, prioritizing prospect calls with lead scoring and filling out guest card information — centralized leasing frees staff to focus on prospects further down the pipeline and current residents....