Property developers have several roles. Examples include purchasing land, developing property design, and building structures. They also rent out, manage and sell properties, and lease.
Leasing is an integral part of property development. So, how should property developers navigate leasing? The following piece covers tips property developers can use for leasing management.
But first, it’s essential to understand what lease management is.
What is Leasing Management?
Leasing management is also known as leasing administration. It involves the daily execution of activities relating to companies’ lease portfolios. Also, it includes activities like document management, reporting, coordination between different stakeholders, and administrative tasks.
Every contract usually has obligations to be met, with one person overseeing that all is done. There is a need for coordinated efforts to perform different leasing factors like :
- Lease negotiation and decision-making tasks. Includes lease length, structure, and lease v/s options.
- Lease administration tasks. Involves updating lease data, managing operational expenses, tracking practicing options, and upcoming renewals.
- Lease accounting tasks. Involves recording journal entries, calculating liability figures and assets, generating reports, and executing re-measurement when a lease changes.
Leases also have a significant impact on financial reporting.
Leasing Tips for Property Developers
Property developers should be equipped with relevant skills to succeed. They should have basic knowledge of the community and the areas they are working on. Knowledge of the fair housing laws and basic real estate terminology is necessary. Also, they need to communicate effectively with prospective residents and community teams.
Roles vary based on property management, property stages, and geography.
Here are leasing tips for property developers.
1. Use of Lease Management Software
The use of leasing management software comes with various features to improve efficiency. It can help you get more property data like location, maintenance, and account.
Also, it’s excellent in improving the decision-making process. The reason is it provides more accurate and detailed information. Property developers thus can streamline activities to get values from their properties faster.
It allows the creation of property management reports faster. The report includes details like the number and locations of properties available, upcoming lease expiration dates, and pending or overdue lease payments.
2. Stay Organized
Being organized can assist property developers in meeting the residential demands. It also helps potential clients with information or answers about living in a particular area. Have a list of potential residents with specific attributes they desire. The list may give you a reason to contact them later.
Examples of attributes clients could be seeking are home areas with good restaurants, gyms, or parks around. Depending on a client’s desire, you should be able to give proper recommendations.
3. Be Competitive
Leasing is a sales role. Thus, it’s only logical to be competitive to succeed in the industry. It isn’t necessarily competing with another property developer. You could be competing against your results last year. The goal is trying to be better than you were the last time. You should desire to win to deliver excellent results.
4. Embrace the Latest Technology
Technology is a massive part of lease management. Thus, property developers should keep up with the changes resulting from digitalization. Technology is set to make the life of property developers and prospective clients easier.
It’s necessary to understand how new technology works and how to utilize it. Sign up for different multi-family newsletters that explain different technology levels to you. Also, look outside your industry for the technology you can apply in the leasing world.
5. Build Relationships Beyond the Community
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It’s necessary to find and develop excellent relationships outside your community and companies. Networking is crucial in leasing. These relationships help you learn, improve and discover the best practices of others in the same space as you.
You can start by joining the local apartment association. Here you can meet other property developers, property managers, to connect. Additionally, you can join virtual classes, attend conferences, join communities, attend virtual events to learn more about leasing.
Expand your professional network by creating a social media profile or website. Also, you can
create and hand out your business cards.
6. Listening is the Key
Apart from being persistent and a good communicator, you should be a good listener. Listen to what a prospective resident wants before selling it to the community. The clients will feel both valued and respected.
Don’t listen to respond, but listen to solve a particular problem.
7. Have Persistence
Leasing is hard. You will always encounter people saying no. Thus, persistence is a vital skill in this role. Strive to work towards a yes. Follow-up with the inbound leads to show you care and are always ready to help. It helps you have a clear clarity of where these people are at in their lease process. Some prospects take their time to sign; hence persistence is vital.
The community should stay on top of your mind. Always explain to them that you will both win.
8. Follow up
After showing them a potential living place, you can call them or email them after a day or two. Ask them their opinions of how they are feeling about the property. If the property didn’t meet their desires, offer to show them another place you think they will love.
If they decide to go with another property, you can contact them after 12 months. Find out if they are comfortable and satisfied with their space. If not, you can always recommend them to new properties you are developing.
9. Ask for Feedback
When working on apartments views or presentations, ask a colleague to hear you and ask for their feedback. Feeding can assist in developing your communication and selling. It can also help ensure the pitch is focussed and directed towards the client’s needs.
Customers expect more than what they are sold. Also, they are likely to do business with you again or recommend their friends if satisfied.
Ask for feedback from former clients, and you can always present this to a potential client to win their trust.
There is always room for improvement when it comes to leasing. Thus, property developers need the right tips to maximize their full potential. You will encounter tough questions and hard to deal with clients. Persistence, patience, listening, and staying competitive are some ways to navigate this journey.
Don’t forget to follow up and ask for feedback.