Skip to content

Where Did the Renters Go? 5 Reasons They Leased Elsewhere (and What You Can Do About It)

where did the renters go-five reasons they leased elsewhere

It’s a fiercely competitive rental market out there. Maximizing occupancy rates is already challenging enough, and when there’s a drop in lease numbers, reporting on why the property is struggling can be frustrating and time-consuming, especially when decisions are made using incomplete data. 

Determining why some leasing prospects convert to renters depends on data that’s… 

If your renters went elsewhere, it’s not too late to turn things around. Below, we’ll discuss the factors that may have contributed to the downtrend in lease signings, and how monitoring specific data can get leases back on track. 

1. Competitors offered more appealing concessions

Renters are drawn to the perceived value of properties. They analyze numbers to ensure a good deal but also get caught up in the emotional aspect, imagining their lifestyle in their next home.

Competitors might offer more appealing concessions that align with your renters’ affordability and living experience requirements, making those properties more attractive. Class A units offering concessions have risen from 6.7% to 9.5% as of August 2023 year-to-date. 

Assessing your concession strategy and unit-level data can help you improve promotion and incentive deployment. It’s not enough to rely on the anticipation alone of your competitors. Concessions can run anytime, and it may be challenging to keep up with them while managing an entire portfolio. Consider automated tracking concessions daily or weekly to adjust pricing and maintain competitiveness dynamically. 

2. Preferred floor plan availability and exposure

Every renter has specific needs and preferences for their living space. If other rental properties offer more options in terms of floor plans, this might attract renters away from your property, which could affect your occupancy rates. While having more available units is not ideal from a revenue management standpoint, it does provide renters with more choices. Consider using this as an opportunity to offer incentives on units that are not being used to their full potential. 

Comparing the availability and exposure of your units to market demand and your competitors can be beneficial in the long term. By analyzing historical data and making strategic real-time decisions, you can forecast the costs of obtaining new residents and potential lease earnings and better understand your position compared to your competition.

3. The price wasn’t quite right 

Rental rates are a significant factor in a renter’s decision-making process. If your prices are higher than their perceived value, you might lose out on leases and revenue earnings. Ensuring your pricing syncs up with market demand - in real-time - is crucial for maximizing revenue. Examine historical comp trends to see if consistent patterns are present, which can prepare you for competitive forecasting that sustains occupancy and profitability. 

Though, sometimes the price may not be the right price, right now. Regular and consistent monitoring is critical for making informed rent rate decisions. Consider implementing a best practice for real-time tracking to ensure you're working with accurate, down-to-the-day, market data

4. Move-in costs don’t match up to features and amenities 

It falls back to perceived value again. Renters are increasingly savvy about the total cost of living at their new place. High fees and deposits can be a deterrent, especially when the costs don’t match up with the selection of features and amenities. 

Keeping these move-in costs competitive with comparables can make your properties stand out. Calling and researching fees and deposits is time-consuming and generally yields outdated information. 

Automatically surfaced public fees and deposits provide transparency into what comps charge for services. Instead of making the rounds once a month, you can see those insights in real time and make more informed pricing decisions. 

5. The timing wasn’t quite right 

Timing is a big component of a renter’s decision to lease an apartment. Personal circumstances, employment changes, the start and end of school influence their choice.  

Making sure your availability is up-to-date and offering competitive pricing can get your properties leased. However, sometimes the timing just isn’t right. Maybe there was an overestimation in unit rates, unit preferences weren’t available, or a missed concession opportunity that deterred the renter from submitting an application. 

All these factors play into their decision to move into a new place. It’s important to track and monitor these leasing insights to remain competitive. Whether measuring them from a historical or a daily perspective, staying updated on how your properties perform against comparables can help you achieve targeted occupancy and revenue. 

Making Future Outcomes Better 

Getting your leases back on track relies on the accuracy and transparency of comp data. The detail of which you can obtain will greatly impact your long-term strategies and success. 

Your teams can make the most informed, data-driven decisions across your national portfolio by tracking leasing metrics and property insight in both historical and real-time views. At ApartmentIQ, we’re committed to providing the most accurate and transparent comp data. Our modern market surveys combine automation with 100% public data, surfacing daily market data in real time and historical data to monitor seasonality. It’s all about driving your business forward. Learn more about the platform →

Webinar Banner (1)