TOPIC: What do you use as a healthy bench mark for closing ratios within your organization?

What do you use as a healthy bench mark for closing ratios within your organization? 1 month 1 week ago #25002

Question-
What do you use as a healthy bench mark for closing ratios within your organization?

I have alway thought 25% as a standard but look forward to your feel back!
  • Courtney Vitek
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What do you use as a healthy bench mark for closing ratios within your organization? 1 month 1 week ago #25003

In my organization, it is 40% standard.
  • Rahardjo Dree
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What do you use as a healthy bench mark for closing ratios within your organization? 1 month 1 week ago #25004

Courtney, It's depends the market, but 25% is an average that we see in the urban Class A lease-ups. (South Florida). We performed one in Fort Lauderdale with a closing ratio over 50%. On Class B and C that ratio can be higher.
  • Santiago Illia
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What do you use as a healthy bench mark for closing ratios within your organization? 1 month 1 week ago #25005

yup! 40% here...if the industry is 30% with proper training and enthusiastic staff you should be able to expect more =)
  • Kitty Callaghan
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What do you use as a healthy bench mark for closing ratios within your organization? 1 month 1 week ago #25006

Our standard was 40% for leasing. Leasing Managers, Marketing Directors, etc. were expected to close higher - at 50%+. When you push for good closing ratios (and get them), it significantly reduces the money you need to spend on marketing (there's also an argument here though that marketing needs to be working to drive qualified leads - we all know how unqualified traffic kills closing ratios). Here's an example: Let's say a property needs to get 5 leases and they want to get those 5 leases from a PPC campaign (just one traffic generation example). If the on-site team closes at 40%, the ad budget would need to be set at about $1700/month. If the on-site team closes at 25%, the ad budget would need to be about $2700/month (this assumes the same lead-to-tour ratio, click through rate, etc. for both scenarios). Just improving the on-site closing ratio by 15% makes that much of a financial impact. That is $12k over the course of a year. I wouldn't be happy with a 25% closing ratio and would push to get that up to around 40% if you can.
  • Kristi Faris Fickert
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What do you use as a healthy bench mark for closing ratios within your organization? 1 month 1 week ago #25007

40%
  • Amy Justus Katz
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What do you use as a healthy bench mark for closing ratios within your organization? 1 month 1 week ago #25008

80
  • Anonymous
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What do you use as a healthy bench mark for closing ratios within your organization? 1 month 1 week ago #25009

Closing ratio is arbitrary. I would rather see a lower closing and leasing at rates above market than higher closing using concessions.
  • Bob Metzger
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What do you use as a healthy bench mark for closing ratios within your organization? 1 month 1 week ago #25010

That’s a perfect opportunity to tie commissions to market rates. We incentivized leasing staff so that when they rented apartments at market or maximum rents, they made more money in commissions. If they rented apartments with concessions, it naturally decreased the amount of their commissions. It was a win-win for the property financially AND the leasing teams. They think twice about offering concessions or needing them as a sales crutch when they see how it affects their pay. They loved it. Of course some market conditions make it nearly impossible to rent without concessions and that’s a whole other story.
  • Kristi Faris Fickert
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What do you use as a healthy bench mark for closing ratios within your organization? 1 month 1 week ago #25011

40% at Maxx - Reno’s make it a little different at certain properties.
  • Anonymous
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