Leasing Tactics

Perhaps the most uncontrollable part of the rental effort, interacting with the prospects will allow you to customize your message and sell the benefits of the property on a more personal level. The leasing process can be broken down into three steps:

(1) getting acquainted with the prospect,
(2) showing the space for lease, and
(3) closing the sale.

Getting Acquainted with the Prospect
Your initial contact with prospects, whether by phone or in person, provides the opportunity to make a good first impression. This initial interaction will usually begin with a telephone call by the prospect who is responding to some form of advertising. Your goal is to secure a face-to-face appointment with the caller. To that end, it is important to realize that the voice is a sales tool, and how you sound and what you say are crucial to gaining an on-site appointment. A warm, welcoming greeting is important, and it should be practiced until you are comfortable with it. Engage in a conversation that answers some, but not all, of the prospect’s questions while at the same time obtaining answers to certain critical questions to help in qualifying the prospect. End the call by asking the prospect to set up an appointment to visit and learn more about the property. In the event that no one is in the office to take a prospect’s call, a voicemail system should be put in place that is user-friendly and has a professional and welcoming voice recording.

Answer a Question with a Question
By answering prospects’ questions then posing a question in return, the chances of an appointment becomes more promising. Compare the two examples below.

Example 1
Leasing Agent: "Willow Valley Apartments."
Prospect: "Do you have any one-bedroom apartments?"
Leasing Agent: "Yes."
Prospect: "How much are they?"
Leasing Agent: "$650 a month."
Prospect: "Thank you." (Prospect hangs up.)

Example 2
Leasing Agent: "Good morning. You've reached Willow Valley Apartments. How may I help you?"
Prospect: "Do you have any one-bedroom apartments?"
Leasing Agent: "Yes, we have several. Rents begin at $650 depending on size and view. Would you prefer a city view or a river view?"
Prospect: "I think I'd like to overlook the city. Do you have exercise facilities?"
Leasing Agent: "Yes, we do. We have a brand new exercise room with all the latest equipment. Would you like to come out right away or would after work be more convenient for you?"

Source: Contemporary Apartment Marketing, copyright 1993, page 142. Reprinted with permission.

Prospect Cards
Recording prospect information on a prospect card (also called guest card) during and after a call with a prospect helps you prepare for the site visit. The prospect card contains all of the information you need to lease a particular space to the prospect. Computer software can provide the ability to store this and other leasing information electronically. For residential properties, the prospect card or software should provide fields to record the prospect’s name, current home address, home and work telephone numbers, email address, occupation, how the prospect learned about the property, reason for moving, rental requirements, and any special needs. The back of the card can be used to list the apartments shown to the prospect and any comments.

Questions posed by the prospect should be written on the prospect card. Pay close attention to the prospect’s first two questions; these are the “hot buttons”—the factors this prospect considers vital in leasing the space. The first question usually involves price or availability; the second question concerns factors the prospect considers vital. Unless these factors are satisfied, the prospect will look elsewhere.

A sample prospect card can be downloaded, free for members, from Forms & Tools.

Note: Guest cards should be completed by the leasing agent, not the potential tenant.

For commercial prospects, the guest card or software should provide space to record contact information, type of business (office) or merchandise type (retail), square footage needed, number of employees, location and amenity preferences, timeframe for moving, parking requirements, potential for expansion, current size, and current rent and charges.

Showing the Space for Lease
The desirability of a property as a place to live or work or shop is embodied in the condition of the apartment, office, or retail space that prospects are shown and the emphasis placed on its features.

Residential Models
Because a model apartment conveys the desired image of the property, the apartment's location and appearance are very important. Most prospects assume that models represent the best the property has to offer and that any apparent defects in the model will be magnified in the rental apartments.

The following are some guidelines for using model apartments:

• Use an apartment(s) with a less-desirable location or layout since the most-desirable apartments are the easiest ones to lease.
• Be sure the model(s) is easily accessible from the leasing office.
• Clean and inspect the model regularly.
• Use decorations that accentuate the best features of a unit and its layout.
• Be sure the furnishings used reflect the income level of the target market and are appropriate for the size of the unit.

For residential properties, the condition of vacant apartments is as important as the condition of a model. At all times an assortment of vacant apartments should be in market-ready condition—thoroughly clean with all improvements made. A daily walk-through by a leasing staff member will assure that the apartment is in presentable condition.

An inspection checklist for a residential property typically includes the following items:

• All walls and ceilings should be freshly painted, including closets or shelving
• Carpeting should be freshly shampooed; burns or stains should be removed or the carpeting should be replaced
• All windows should be washed inside and out
• Windowsills, ledges, and shelves should be wiped clean
• Light fixtures and switches should be in working order
• The temperature should be set at an appropriate level for the season
• The kitchen should be immaculate with all appliances clean and in working condition
• Bathrooms should be spotless; watch for dripping faucets, stains, and tub and tile grout that should be replaced

Office Models
A model may be set up to facilitate leasing of an office building under construction. Model offices may be constructed in the first leasable space completed in the building or in a nearby building overlooking the construction site. Model offices help prospects visualize how their office could look.

The following are some guidelines for using model offices:

• Include an executive office, a staff office, an open secretarial office, and a conference room (about 1,000 to 1,500 square feet).
• Use standard tenant improvements instead of extras or upgrades to decorate model offices so prospects see how attractive and comfortable their space can be without added expense.
• Supplement the model office with large-scale models of the building, lobbies, and other common areas, especially if pre-leasing before the site
  is built
• Consider using a multimedia presentation in the model office to introduce the development, architectural, and management teams to prospects.

As with rental apartments, vacant office and store space needs to be inspected regularly to ensure that it is ready for occupancy. In shopping centers when a space will be vacant for some time, it is sometimes desirable to make use of the space by leasing to temporary tenants or allowing other established tenants to use the vacant store windows to promote their merchandise. When there is a substantial amount of vacant space, such merchandising or temporary leasing of vacant space tends to minimize appearance of emptiness while also serving to attract customers to other shops.

Preparation
In order to prepare for a showing, leasing staff must have a thorough background of the property and the neighborhood. For residential properties, learn the shopping areas, schools and their bus routes, businesses, churches, local governments, and public transportation. For commercial properties, be familiar with the demographics and economics of the area, discovered in the market analysis. Knowing the key competitive advantages of the property is essential; your visits to competitors should have helped you determine the relative strengths and weaknesses of your property.

Part of preparing for the site visit is to review the prospect card and information collected at the last point of contact with the potential occupant. This will help determine which space to show based on layout, price, amenities, and availability. Before the prospect arrives, a few route options should be planned that arrive at the space quickly and easily. Staff should make a habit of walking the grounds and following the various routes that will be used during presentation tours. Units should be ready for viewing and keys should be obtained in advance. If models are available, show them first. All of this preparation should help minimize surprises during a tour and help develop an effective sales presentation.

Security should be of utmost importance when showing a space for lease. If the property is master keyed, safeguard all keys in a separate facility. Keep key codes locked at all times, and restrict access only to employees who have had a background check. If other key access systems are used, follow manufacturer protocols with regards to controlling access.

Benefit Selling
For the space that will be shown, specific features should be noted that will appeal to the prospect. Sketching out the features on floor plans may be helpful. Selling features requires matching the benefits of the apartment to the needs of the prospect. Simply saying “here is the master bedroom” is obvious; however, by adding that the master bedroom has an “unusually large walk-in closet with five extra linear feet of hanging space and ten additional square feet of shelving compared with other apartments” gives a good indication of how the feature improves lifestyle. Benefit selling should be delivered with enthusiasm since buying is partly an emotional process. Any promotional materials, such as brochures, should be prepared and ready to be handed to the prospect.

Personalization
The sales approach the leasing agent uses depends on the prospect and his or her reasons for searching for an apartment. A single person looking for an apartment will not have the same “hot buttons” as a retired couple who just sold their large house. A large department store tenant will not have the same needs as a small jewelry retailer. The leasing agent should modify the sales approach to accommodate varying motivating forces behind moving. As an example, if a residential prospect has two small children and does not like his or her current neighborhood, the leasing agent should point out the benefits of the local school district and nearby parks. Offering a personalized “surprise” can also be used. For example, if the prospect indicates that he or she hates to waste money, a skilled agent may respond by explaining the benefits of the energy-efficient heating plant and high insulation in the walls and ceiling, which reduces energy costs.

It is a general consensus that a buyer who likes the sales person is more apt to make a purchase. This reasoning also applies to the relationship between a prospect (buyer) and leasing agent (seller). If the leasing agent indicates a liking for one of the features of the space, the prospect will also like it. To personalize the sales process, it can be beneficial to present all of your favorable impressions of the features in the apartments.

However, emphasizing features that the leasing agent believes are positive may sometimes trigger a negative reaction from the prospect. Moreover, the manner in which a feature is emphasized can make it difficult for the prospect to say what he or she really thinks. The examples below demonstrate the negatives and positives of this technique.

Example 1
Leasing Agent: “Isn’t this a great carpet? This charcoal-brown color just came on the market!”
Prospect: “It’s very nice.”
What the prospect really thinks: “My furniture is peach; it would look terrible in here.”

Example 2
Leasing Agent: “How do you like the color and quality of this carpet? Would it go with your furniture?”
Prospect: “My couch and sofa are peach. Do you have a more neutral color?
Agent: “Sure. I have the same apartment layout down the hall. It has new carpet in a sandstone color. Shall we look at that one?”
Prospect thinks: “This person is interested in my satisfaction. I think this might be the right apartment for me.”

Source: Contemporary Apartment Marketing, copyright 1993, page 174. Reprinted with permission.

Countering Objections
If a prospect begins raising objections, it can be regarded as a positive indication of the prospect’s continuing interest in your apartment. Most rental agents assume objections are an indication that the prospect dislikes the space. However, in general, people are hesitant when faced with major purchasing decisions and raise objections to avoid making a decision. Listen carefully to the objections and be receptive, not defensive. Uncovering objections and turning them into positives is the key to success—when all of the prospect’s concerns have been eliminated, there is nothing left but to sign the lease.

Objections related to price are dreaded by leasing agents. A residential prospect might say, “Your 900-square foot apartment costs $850 a month? I saw a larger two-bedroom apartment down the block for $750.” You can respond by emphasizing the benefits and value of the apartment. An effective method is to emphasize that the resident will be paying for higher quality. A sample response by a leasing agent might be:

“You’re absolutely right. Their apartments are less expensive than ours. I’d like you to give me an opportunity to show you our two-bedroom apartment. We’ll start out by looking at a model apartment that displays the features we talked about. You’ll see that it has a full-size washer and dryer, which is really convenient for families like yours since you have small children. At [the competing property], they have a smaller laundry room in the basement.”

Objections involving amenities are also common. If the amenity can be provided, such as installing new carpeting, then the issue is resolved. If the desired feature is considered desirable rather than necessary, then the leasing agent can suggest alternatives or convert it into a benefit by persuasively selling the advantages of the existing feature. The prospect’s wish to have a washer and dryer installed in their apartment might be handled by saying that the laundry room has six new sets of appliances with a large table and comfortable chairs; as a result, multiple loads of laundry can be done conveniently in less time. Objections to amenities should be anticipated and potential solutions noted.

Closing
The culmination of the leasing efforts is the closing or the invitation to the prospect to sign an application and/or a lease. The following are common closing techniques:

• Use a summary close such as, “This apartment meets all of your needs; it has a separate dining room, big walk-in closets, and the room layout that you liked. Let’s go back to the office and fill out an application.”
• Use a silent close by simply handing the prospect a rental application and
  a pen.
• Order-taking: begin filling out a rental application by asking the prospect the questions of the form. When all of the questions are answered, present the form for signature.
• “If I could, would you?” Ask the prospect if they will agree to sign the lease after you make a particular negotiated concession.
• Emphasize the “pros” of the space. Convince the prospect that the reasons in favor of signing the lease are stronger than those against it. This can be done by comparing the space to competitors and emphasizing all of your competitive advantages as they relate to the prospect.
• Instill a sense of urgency by explaining that this is the only unit with the desired features, or that you have another appointment shortly to show
  the space.
• Ask questions that presuppose the signing of the lease. An indecisive retail prospect may be spurred into action by a question such as, “What merchandise do you plan to promote for your grand opening?”
• For commercial properties, mention other tenants that have already signed leases. The goal is to make the prospect aware that others have found a common ground with the owner.

Although you may be uncomfortable with the idea of closing the deal, prospective occupants expect it. The closing should be a natural result of your marketing and leasing efforts.