Closing the Sale

Turning a prospect into a tenant is tough. Although rental cost and location are important factors, an attractive property, a solicitous attitude and empathy for the housing search will also help in delivering a signed resident.

Engaging the Tenant
“Agents need to participate in the ‘closing’ to get that renter,” says Barbara Holland, a certified property manager (CPM) and president of H&L Realty Management Company in Las Vegas. She cautions that prospects might be out the door if they aren’t engaged in a conversation that solicits what they liked and didn’t like in the unit, the property or the neighborhood.

Greg Martin, vice president of rental and residential properties for Draper and Kramer Inc. in Chicago, suggests gleaning information and interest before you show a unit.

“A good leasing agent has the ability to go for the close,” says Martin. “That begins as soon as you get the inquiring phone call and start ascertaining the needs of the prospect. If it’s a ‘drop in,’ have them fill out a guest card to get the same information.”

Adding Urgency
Today’s rental market largely favors the leasing agent as inventory has tightened. Getting the tenant is easier and concessions are fewer. But that isn’t to say prospective tenants can’t take their business elsewhere. Adding urgency can be an effective approach.

“Say a couple is looking for a three-bedroom,” Holland says. “You have only one available. Offer to hold it for two days if they leave a returnable deposit. You’re creating a subtle sense of need on their end to make a commitment while being honest about your inventory. A prospective tenant appreciates such honesty.”

Although price is a prime determinant, Holland leaves some flexibility so the price can fluctuate as needed. “In our advertisements we say ‘prices starting at’ so there’s some choice or accommodation,” she says.

Martin’s company might offer $250 off the first month’s rent if they need to use an incentive.

Keeping Up Your Property
Not everyone schedules an appointment to see a unit; some drop by unexpectedly. Make sure your vacant rentals are in top condition. “First impressions are so important,” Holland says. “You want prospects to come back for a second look.”

Holland also recommends showing the property grounds and the rental office. “The look of both sends a message,” she says. “Prospects may initially drive by to assess [the grounds]. You need to be ready at all times.”

Martin says the rental office also serves as a model unit in many of his company’s suburban properties. “It needs to be a showcase. In our high rises the rental office is an actual office,” he says. “In these locations we feature flat panel screens highlighting our properties, the city, its neighborhoods and its amenities, all to help inform and sell.”

Both Holland and Martin suggest providing information on area schools, transportation, restaurants and other local information that might be important to any prospect.

“Location is everything for some tenants,” Martin adds. “In Chicago, sharing which of your units is in the hottest part of town is a big selling point.”

Developing a Relationship with “Locators”
Many of Draper and Kramer’s leasing agents deal with individuals called “locators,” who charge a fee to help prospective renters find an apartment.

“Almost 50 percent of our rentals on Chicago’s Gold Coast originate through locators,” Martin says. “They help bring people in, especially for higher-end properties. You’ll see leasing agents develop working relationships with locators who have delivered good tenants. It is just another way of finding quality prospects who are likely to become residents.”