One of the key metrics for measuring success in business is the "closing ratio." Simply put, the closing ratio is a number that represents the percentage of sales, or "closed deals," made from an available pool. Obviously, a higher number is better, but each different industry will have a different ideal closing ratio based on factors that are specific to that business.

In property management, a closing ratio is a measure of how many potential residents view a vacant property before someone finally commits to becoming an actual resident. This closing ratio may be assigned to a leasing agent if you're working with one, or it may be your own personal metric if you are the only one who is managing the property. There are a few techniques to consider for building up this ratio.

Prompt Response

One of the most effective ways to convert potential leads into closed deals is to be responsive. Keep in mind that when someone is looking for a place to live, your property is usually just one of many that they are considering. If they are submitting an email form or making a phone inquiry to you, they will be doing the same thing for other potential homes. Converting a lead to a closed deal enjoys better odds of success when responses come within a minute of being made, whether that's a reply email or a return phone call. Waiting too long often means someone else took that opportunity away from you.

Prequalify Residents

One of the best ways to ensure you fill a vacancy is if the majority of people who consider the residence are suitable for residence. For example, if you are renting a residence for $3,000 per month, people who ask to see it but plan to spend only $1,000 per month are already wasting your time and theirs. By prequalifying potential residents and ensuring that your property is a good match for them, their needs, and financial capabilities, you reduce the number of false or unsuccessful leads and get closer to raising your closing ratio.

Ask Useful Questions

Always remember that the basics of successful sales are that you can provide what a customer or client needs. Asking relevant questions is one of the best ways to hone in on whether you're in a situation with a successful close, or whether this may not work out. For example, there's no point in pushing a state-of-the-art gym facility on the premises if the person you're talking to has no interest in physical fitness. You can quickly find this out by asking the right, relevant questions. On the other hand, if you find out through asking that the person plans to work from home remotely on a regular basis, and thus requires a reliable Internet connection, and your Internet infrastructure can easily meet this need, your questions have now revealed a key selling point that you can use in negotiation.

Keep in mind that for property management, a typical closing ratio is about 30-40%. If you want to make sure you're maximizing your closing ratio, contact Occupancy Solutions and let us help.