Key takeaways
- Centralized leasing is a streamlined process that utilizes technology systems and leasing companies to find and sign potential tenants.
- The benefits of a centralized model for leasing include increased resident and employee satisfaction and the ability to utilize companies full of trained leasing and marketing professionals.
- The primary con of a centralized lease model is you must place your trust in the success rate of the technology and/or leasing team that you work with.
The leasing process for your multifamily property is a hassle at best, and this process only becomes more challenging based on how big your property is. Centralized multifamily leasing is one modern solution for simplifying the leasing process and taking the property management industry by storm.
In this post, we’ll review what centralized leasing models are. Next, we’ll explain how they work. Finally, we’ll review the numerous benefits of centralization from both a property management and resident perspective.
This post covers:
- What is centralized leasing?
- How does a centralized leasing process work?
- 4 benefits of a centralized leasing system
- Centralized leasing model pros and cons
What is centralized leasing?
Centralized leasing is when you forgo the traditional leasing model and instead use online software such as AI, external leasing teams, self-guided tours, a leasing agent, or third-party websites.
What’s more, the definition of the word “centralized” in centralized models for leasing is that of a more efficient and streamlined process.
What is centralization in real estate?
Centralization in real estate is when management operations are switched from being on-site at individual properties to an all-in-one hub that then manages multiple properties. For example, if you own three commercial properties, centralization would involve you establishing an office near all three properties in order to manage them all in the same place. As a result, centralization is a combination of resources in order to distribute said resources in a more organized and efficient manner.
How does a centralized leasing process work?
Centralized leasing processes are designed to maximize leasing efficiency and reduce work for on-site teams at your property. So, different centralized leasing technologies work in various ways.
For example, AI leasing assistants will schedule apartment tours for prospective tenants and answer questions they might have.
Overall, your centralized operations can encompass multiple properties using the same technology.
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4 benefits of a centralized leasing system
Approximately 44 million Americans currently rent. With this high demand, the benefits of a centralized leasing model have never been more important.
Four benefits of a centralized leasing system model:
- Work with leasing professionals
- Resident satisfaction
- On-site employee satisfaction
- Professional marketing efforts
1. Work with leasing professionals
Many property management companies outsource their leasing functions to companies composed of leasing professionals and marketing specialists who handle your apartment leasing for you. This is especially useful when you don’t have time to learn how to use centralized leasing technology or conduct online leasing yourself.
Furthermore, leasing consultants are specifically trained on the nuances of leases and how they work. They handle all of the tedious work involved with leasing, which includes managing inbound leads and managing leads for potential residents.
2. Resident satisfaction
An easier leasing process will lure potential renters to your property itself. Many renters prefer self-guided tours that can operate at hours that best suit them instead of your available on-site staff. Centralized leasing can make the process self-explanatory to prospective renters so they know what’s necessary to qualify for your multifamily property.
Furthermore, centralized leasing often leads to faster response times to a resident’s inquiries. As a result, when given a choice, modern renters are going to choose the easy and simple leasing experience every time, which is centralized leasing technology.
In addition, centralized leasing will also bring in new residents who fit in well with current residents. Why? Because leasing agents will get to know your property and determine who will be the best fit.
3. On-site employee satisfaction
Centralized property management is the future. By switching over to centralized lease operations, you’re taking mundane tasks offsite for the employees at your building. As a result, on-site teams can instead spend their time managing your building, doing administrative tasks, and interacting with residents face-to-face.
Furthermore, you will also find it easier to hire employees who are trained in the aforementioned tasks instead of requiring your employees to be marketing and leasing professionals. Increased satisfaction for your employees will lead to less turnover and a better workplace morale that residents will notice.
4. Professional marketing efforts
In addition to getting leases signed efficiently, centralization also involves marketing your property to residents.
Centralized leasing companies are staffed by multifamily marketing professionals. They do your marketing for you and can ensure that your building never has a vacancy long enough to hurt your operating costs. This is especially useful if your building has over 200 units. Say even 10% of those units are empty by the end of a leasing period. Still, the amount of work required to fill them is too much for any one person to take on.
Fortunately, leasing teams have a comprehensive understanding of your local area’s renting demographics and history, as well as leading marketing trends in the area. Leasing agents will work with you to develop a distinct brand for your building. This can lead to a snowball effect of exposure that leads to residents patiently waiting for openings in your building. The data collected for your property can be invaluable when it comes to analyzing your property’s growing worth.
Centralized leasing model pros and cons
While we’ve covered the “pros” of centralization for the multifamily industry, there is at least one con that you should be aware of. Unfortunately, centralizing your leasing process involves relinquishing some control over your leasing process. It often involves trusting a centralized leasing team to find good residents for your property and market your property efficiently. If you don’t pick a reliable leasing team or leasing technology, this could have a negative impact on your property.
For many properties, this drawback falls short of all of the benefits that centralization has to offer. Of course, it’s best to perform thorough research into centralized property management, as it’s not a one-size-fits-all solution.
