In order to increase occupancy rates in rental management, it is not enough to simply post an advertisement after a vacant room becomes available. Notice of leaving, restoring the property to its original condition, recruiting conditions, photos, responding to feedback, previews, application, contract, and post-movement support all need to be connected as one flow.
If the management company and the intermediary company are separated, it will be difficult for on-site information to be reflected in recruitment. On the other hand, a company that can manage management and brokerage in an integrated manner will be able to deal with tenant needs, reasons for leaving, repair history, surrounding competition, and reactions from previewers in the same team, making it easier to take measures against vacancies.
Key points of this article
- Occupancy rate is linked not only to recruiting ability but also to management quality.
- With integrated management and mediation, you can start preparing for recruitment even before you move out.
- It is important to look at the number of responses, viewing rate, application rate, and number of days until closing as KPIs.
- Rather than an integrated management system that locks in information, you should choose an integrated management system that discloses information to the owner.
- CRM and preview DX are only effective when combined with on-site information.
Why does separating management and mediation lead to longer vacancies?
The management company knows the condition of the property. Brokers know how potential tenants will react. If these two pieces of information are separated, vacancy measures will be delayed.
For example, even if a previewer responds by saying, the plumbing is old,''it's darker than the photos,'' or ``the rent is higher than the surrounding area,'' improvements cannot be made unless that information reaches the management or owner. Even if the reason for leaving was dissatisfaction with the facilities, changing only the recruitment conditions will have limited effect.
To increase utilization rates, recruitment and management information must be circulated. The value of integrated management and brokerage is not just the convenience of having a single company, but also the ability to quickly identify the cause of vacancies and make improvements.
Practical benefits created by integrated management and intermediary operation
| Scene | What you can do with integrated management | Impact on occupancy rate |
|---|---|---|
| Notice of moving out | Sorting out the reason for moving out and preparations for recruitment at the same time | Recruitment starts sooner |
| Restoration to original condition | Construction decisions tailored to recruitment targets | Reduce unnecessary repairs |
| Photos/Advertisement | Reflecting management information in advertising text | Improving the quality of response |
| Handling previews | Immediate feedback on on-site issues | Quicker decision making for improvements |
| Application screening | Screening with a focus on post-occupancy management | Preventing late payments and trouble |
| After moving in | Pre-contract explanation and management response are connected | Renewal rate and satisfaction level increase |
When dealing with vacancies, it is important not only to start recruiting quickly, but also to be accurate in the recruitment content. If you are doing renovations that don't match your target audience or setting rents that are out of line with the market, it will be difficult to see results even if you increase your advertising.
KPI to see the utilization rate
The occupancy rate is not the only number that owners should check with the management company. When you break down the process from vacancy to closing, you can see where the problems lie.
| KPI | Meaning of looking |
|---|---|
| Number of days until recruitment starts | Is there a delay in the initial response after moving out |
| Number of responses | Are rents, advertisements, and photos reaching the market |
| Preview rate | Is the response progressing to preview |
| Application rate | Are you selected after preview |
| Number of days to conclude a contract | Is the period of vacancy putting pressure on profits |
| Reason for leaving | Are there any issues with management quality or equipment |
| Renewal rate | Is tenant satisfaction maintained? |
For example, if there are a lot of responses but few applications, it may be that while the product looks attractive in photos and advertisements, it may not meet expectations on-site. If there is little response, you need to review your rent, advertising, photos, and equipment conditions.
How should CRM and preview DX be used?
CRM, online previews, and VR previews are useful tools, but simply implementing them will not increase occupancy rates. The important thing is to accumulate feedback history, preview history, and tenant response history and use it for the next recruitment decision.
CRM records the date and time of inquiries, desired conditions, response details, availability of previews, and whether or not applications have been made. This allows you to understand which conditions have been selected without relying on the intuition of the person in charge.
Preview DX allows you to increase your contacts with prospective residents from far away and busy working adults. However, if the content shown in videos and online previews remains outdated, it will have the opposite effect. Interior photos, amenities, surroundings, and initial costs must be updated to match the actual condition of the property.
Questions owners should ask their management company
When choosing a company that combines management and intermediation, you cannot make a decision based solely on the words ``we can also do intermediation.'' Check whether information is actually circulating.
- How many days should I start preparing for recruitment after receiving a notice to move out?
- What data should be used to propose a review of recruitment conditions?
- Will previewer reactions be shared with the owner?
- Can restoration work and recruitment conditions be designed at the same time?
- How often are advertising locations, photos, and floor plans updated?
- Can you regularly report the number of responses, previews, and applications?
- Do you want to open information to external intermediaries instead of just relying on your own intermediaries?
Of particular importance is information transparency. Integrated management is powerful, but when information is enclosed, it becomes difficult for owners to grasp the actual market situation. It is important to choose a management company that has an intermediary function and can appropriately disclose recruitment information.
Practical flow of vacancy improvement
When a vacancy appears, check the causes in the following order.
- Check the reason for leaving
- Check the rent, equipment, and initial costs of nearby competitors
- Update indoor conditions and recruitment photos
- Check the number of responses and viewing rate
- Collect reactions after viewing
- Decide what to change about rent, initial costs, equipment improvements, and advertising.
- After closing, keep a record that can be used for the next recruitment.
A company that can follow this flow every time will be less likely to handle vacancies on an individual basis. Utilization rate is something that can be raised not only by individual sales force but also by improvement cycles.
Frequently asked questions (FAQ)
Q1. Is it better to leave management and mediation to the same company?
A. There are benefits to integrated management, but information disclosure is a prerequisite. You should choose a company that can share the feedback and preview results with the owner, rather than keeping it to themselves.
Q2. What is the best way to increase utilization rate?
A. It is to resolve the cause of vacancy. If you look at where the issues are in terms of rent, interior conditions, photos, advertising, handling of previews, and post-movement management, you will be able to take concrete action.
Q3. Are CRM or online previews required?
A. Although it is not required, it is important to have a system that allows you to manage feedback history and viewing history. Rather than tools, it is important to use records for improvement.
Q4. Are there any signs that I should change the management company?
A. If the explanation of the reason for vacancy is vague, the number of responses or previews are not shared, there are no proposals for recruitment conditions, or the reason for leaving is not reflected in the next operation, you should consider reconsidering.
I also want to read
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- What is restoration work? Scope, expenses, and countermeasures for payment troubles that rental owners should know
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