Free Toolkit: How To Increase Occupancy In Apartments with Video Tours
Inside the toolkit:
- Learn how to record an apartment video tour that converts.
- Watch our step-by-step unit recording best practices video.
- Download our 9-point cheatsheet for future reference.
About the Guide
Promoting a multifamily property in the modern leasing landscape presents some unique challenges. Prospective residents are busier than ever, may not be able to travel to the property prior to leasing, are most likely looking for an authentic experience, and, on top of that, there is more noise from competition in the market than ever before.
So how do you stand out from the crowd and make your leasing life easier? Turn to video! Using this toolkit, you’ll learn how to use live or recorded video to overcome the problems of geographical distance, busy schedules, and a lack of easy, transparent communication with your online, typically remote, audience. Afterward, you’ll be able to create a truly authentic experience that will make your videos and community stand out.
If you enjoy the toolkit, sign up for a demo of Realync’s video tour software. With Realync, you’ll be able to create polished, professional, cloud-based videos, and host live video tours that are simple, welcoming, transparent, real, and, most importantly, authentic.
How To Calculate Occupancy Percentage
The first step in figuring out how to increase your occupancy is to understand exactly what your actual occupancy is. Learning how to calculate occupancy percentage for apartments is an essential skill for those seeking ways to decrease vacancy rates.
Once you learn how to calculate occupancy rates in Excel or your lead management system, you’ll have the numbers right in front of you. Be sure to keep this data updated on a weekly, if not daily basis. If you don’t know what occupancies you currently have or have coming in the next few months, you will not be able to accurately and effectively lease your community. By now, you’re probably wondering how to calculate occupancy index?
How to Calculate Leased Percentage
The formula is rather simple — an occupancy rate is simply the percentage of available units that currently have someone living in them. Start by counting the number of apartments in your community that are available for rent — including the ones that are already occupied. Don’t include units that are currently off the market because they’re undergoing remodeling or in need of serious repairs before they can be rented out again. Take the total number of apartments and divide that number by the number of units that are actually rented out, and this will give you your occupancy rate for that particular month. Before doing the division, multiple each number by 100 to express them both as percentages.
Unlike hotel rooms, apartment occupancy rates aren’t calculated using a double occupancy formula. It doesn’t matter if five people live in an apartment or if one person lives there — the unit is counted as occupied. Student living is a different scenario though as everything is counted by bed for student housing. But that’s another post for another day.
How to Calculate Pre-Leased Percentage
Pre-leased percentages are calculated in the same way. The only difference is that they refer to construction that hasn’t yet been finished using the number of units with a designated future tenant who has signed a lease agreement divided by the total number of available units. Pre-leasing a multifamily community is one of the most critical phases for the success of a multifamily investment, so it’s important to know exactly how lease up you are at any given point in time.
Apartment Occupancy Calculator
If you’re like most busy people, manually calculating occupancy rates is a time-consuming process that also leaves your data open to error due to interruptions and other distractions. Using an apartment occupancy calculator minimizes this risk as well as makes the process go more quickly. As an added bonus, you can use an apartment occupancy calculator to create your own customized spreadsheet in Excel or other type of spreadsheet program, which will ensure that you own the data.
Other Multifamily Calculations
A good occupancy calculator will allow you to do much more than simply formulate occupancy and vacancy rates. For instance, you’ll be able to quickly calculate a performance metric known as RepVar that tells you the revenue produced by each individual unit as compared to the others. Knowing all of your numbers and occupancy and vacancy rates is a critical part of efficiently managing a multifamily community and a critical part of understanding your over NOI (“net operating income”).
How to Calculate RepVar
RepVar stands for revenue-per-available-room and it’s calculated by determining the average daily revenue intake by the occupancy rate. RevPar is used more often in the hotel industry than in apartment communities, but having this data can be helpful if you live in an area where high rental turnovers are common, such as neighborhoods situated close to college campuses or military installations.
You can also use an occupancy rate calculator to determine long term occupancy average, which you can then use to craft other multifamily calculations. For instance, you can use it to determine the long term occupancy average of your property or to develop an occupancy forecast formula. It’s also possible to play around with different numbers to calculate the gross potential rent using as many different price points as you want.
Apartment Leasing Incentive Ideas
Leasing incentives are another tool you shouldn’t ignore if you want to increase occupancy rates. Possible ideas include apartment move-in incentives, such as offering several free months of membership at your apartment community’s on-site fitness center if there is a fee for that, free parking, gift certificates for local pubs and restaurants, free renters’ insurance for a specified period of time, and free gifts such as coffee makers, toasters, or other appliances. Money also talks — for instance, you can offer discounts on security deposits, and, if vacancy levels are high in your particular geographical area, you might consider offering a discount on the first month’s rent.
Other move-in special ideas for apartments are free subscriptions to Netflix, free use of a moving truck on the day they move in, or tickets to a local sporting event or concert. Again, it’s important to gear incentives toward your targeted demographic — if your average resident is a young professional living alone or with roommates, he or she probably won’t be tempted by incentives involving free or discounted membership to a local family fun center but will probably appreciate a gift certificate to a nearby restaurant or a couple of months worth of free parking.
Apartment Leasing Traffic Sheet
Creating a comprehensive apartment leasing traffic sheet will provide an invaluable tool for you to use when making future occupancy rate projections. Although rental populations can and do shift over time, the most reliable indicator of future traffic is current and past traffic. You can create a leasing traffic sheet using property management software designed to help you keep track of rental trends and the overall performance of your property. This will make it easier for you to determine the best strategies to increase overall occupancy by attracting new residents and keeping existing residents reasons to stay.