Lead to Lease conversions - industry average?

Is there a "rule of thumb" or industry average for the number of ILS leads needed to convert to a single lease? I have heard numbers such as 40-50 leads per every lease, and also expect anywhere from 5% to 25% of leads to convert to leases.

I know that rents, demand, lead follow up process and many other factors can affect this number. I am trying to understand what a typical range might be expected in order to assess ROI and cost per acquisition using an ILS strategy. Also, maybe our lead follow up process needs to be honed if we are not closing as many leads as other companies experience in this industry.

The properties are primarily in Manhattan and are luxury rentals, if that makes a difference. Thanks for the help!
Maureen

Hey Maureen,
It is important to understand that every submarket is different, and thus closing lease percentage is different in every submarket. I think you understand this already. I am not familiar with any "rule of thumb" closing percentages however I am extremely familiar with how to increase your closing percentage as I am an apartment marketing expert.

The most important factor is timing.

We have found that if an lead is responded to within the hour, closing percentage increases by 50%. Also all of our properties have an online rental application which allows potential tenants to fill out the rental application and submit it at all hours of the day (we have found that people will not print out PDF applications). Once an applications has is submitted, our property managers get receive an email with the name and number of the potential tenant. It is essential to respond to these online applications within the hour. We have found that responding within an hour of receiving an online application closing percentages are well over 50%.

I hope this helps. I know that many properties are having trouble staying at a high occupancy. Good luck.

Sergio Navarrete
Apartment Marketing Solutions

I'm the Director of Leasing for a very large new rental development in Manhattan. My team consistently had above 20% which is great.