Few would argue that the current leasing process is broken. It operates under extreme inefficiencies which in turn affect the bottom line in significant, measurable ways.

Multifamily executives often migrate towards automated solutions that promise large efficiency gains. Online Leasing, for example, presents an attractive solution for improving the leasing process using the latest and greatest automated technologies. Many operators will jump at the opportunity to become cutting edge and take the organization to this magical "techtopia". These online systems, while shiny, ultimately fail to address the fundamental problems that plague the leasing process.

The reason so few organizations are successful with process improvement initiatives can be attributed to unreasonable expectations set by the organization's leaders. Multifamily executives operate under the fallacy that System X will somehow fix Process Y, failing to distinguish the important differences between a process and a system in the, um, process.

Adopting an online leasing system with the false hopes of fixing a broken leasing process will yield disappointing results every time.

Process vs. System

A process is a set of methodical instructions to complete a task for a desired outcome. Leasing processes, for example, are developed and refined over time by property managers, regional managers, and sr. level executives.

A system, on the other hand, merely acts as a vessel for execution. It completes processes based on the instructions it's been provided. While systems are great at increasing the speed of process execution, it has absolutely no ability to improve the quality of the instructions it has been provided. Simply put, a system cannot overcome a bad process. If you're moving dirt from one hole to another, makes no difference if you're using a shovel or hydraulic loader; still just moving dirt.

Ok, let's try this example:

Say your organization requires 52 total signatures to execute a single lease agreement. (Now before you laugh, count up every signature in one of your lease files, - initials, leasing agent, property manager, etc. Surprised?)

That 52 signature requirement, as silly as it may sound is the norm in Multifamily and no matter what system is implemented, that requirement is a part of the organization's leasing process. An online leasing system, at face value, has no ability to reduce the amount of required signatures for completing a lease. Such adjustments require the organization to change its process by reevaluating which signatures are absolutely needed and remove the unnecessary.

The irony, of course, is that few organizations begin to tackle these process issues until the introduction of an automated system. This self fulfilling achievement of efficiency gain has little or nothing to do with system automation. Many scratch their heads asking why the heck didn't change this before?

The Question of Process

When a new system is introduced to an organization, the question of process (Who's shall we use?) must be addressed. There are two schools of thought when choosing the right process for a system. The easiest of the two is to simply adopt the process already integrated with the system and hope the software developers did their R&D for your industry. For an organization desperately looking to improve its leasing process, adopting an off-the-shelf process/systems package seems logical and, initially the most cost effective choice.

However, it is often realized that a perfect solution for an imperfect understanding can cause unforeseen redundancies. Work-arounds begin to develop in order to meet the needs specific to the organization. Over time, a hacker culture emerges with leasing managers that are better equipped to circumvent the system than they are to utilize it.

The second option is to "go custom" and integrate your organization's internal processes with a 3rd party system. This approach is usually greeted with large customization fees and poorly executed functionality. The marriage of process and system is the result of evolution and cannot be achieved through one iteration. It requires patience, trial and error, and most important of all, open and consistent communication between operators and system developers. This option is, by far, the most difficult to achieve.

A third option

There is a third overlooked option that can provide gains in efficiency without the need of an online leasing system. Sales Process Hacking, as I like to call it, is a practice aimed to strengthen the sales process without introducing layers of complicated systems. These "process hacks" designed by my firm provide valuable, common sense techniques aimed at improving your leasing process at little to no expense to your organization. True to the sport of hacker culture, I am pleased to give them away for free in the following posts.

I hope you enjoy.