A single property tour can make a difference between closing the deal and losing a potential tenant to another competitor.
In a competitive market where time is of the essence, vacancy will cost money faster than you realize.
Read this guide as we provide step-by-step instructions for converting an average tour into a signed lease.
It will explore established strategies, such as using the “look and lease” promotion and strategically timed follow-up communications, to get your potential tenant to commit before walking away from your rental unit.
What is a “Look and Lease” Special?
A “Look and Lease” promotion is a time-sensitive incentive that converts your prospect’s tour into an immediate rental agreement.
After a prospect has toured your property, if you can get them to apply for and sign the lease in 24-48 hours from the date of the viewing, they will qualify for a “freebie”, which typically includes waived application fees, a lower security deposit than what is normally required, or the first month’s rent for free.
By creating a sense of urgency through this method, you are using one of the most powerful psychological principles known as loss aversion; the idea is that tenants don’t want to lose out on a good deal.
Therefore, ensure that your look and lease special is clearly communicated during the tour so tenants feel they are getting a good deal.
Why Speed Matters in Leasing
Speed is important to be able to lease units quickly.
Leasing speed can mean the difference between making money and losing money on every single rental unit you own.
As long as a unit remains vacant for one day, your potential earnings continue to decline.
Here’s why acting fast matters:
The True Cost of Vacancy
Every vacant unit absorbs all those expenses, such as mortgage, taxes, insurance, and utilities, directly from your own pocket.
The loss of one month’s vacancy could easily destroy the profit margin for an entire year.
When your rental property is vacant for a period of time, it is also exposed to possible vandalism, burst pipes, and general neglect.
By acting quickly, you can significantly reduce the amount of money at risk.
Standing Out in a Competitive Market
A potential tenant usually sees several different rental units before deciding on one.
If you wait too long to respond, another renter who was just as interested but found a similar unit listed by a faster landlord will get their attention.
Being quick and ready to move into your unit shows that you are professional and makes your rental unit stand out from others in the area that may be moving slowly or disorganized.
Make sure the property is ready, such as fixing plumbing or repairing uneven floors in the home.
Capturing High-Intent Tenant Demand
Potential renters do not view renting homes as a casual activity.
They typically book tours with serious interest.
After two days of booking a viewing, there is nothing left of that excitement about finding their new home; instead, the prospect of actually signing a lease is now filled with doubt.
To convert that momentum of desire into a signed contract, a simple rental application process is necessary to capture the desire of qualified prospects at their peak.
How to Turn Property Tours Into Signed Leases?
Closing an apartment rental with a prospect is rarely a matter of luck.
With these strategies, proven by landlords to create urgency and build confidence in the property and yourself while eliminating obstacles, you will be able to close a rental agreement before your prospect walks away from the opportunity.
Prepare the Unit for Maximum First Impressions
You should arrive at least 30 minutes prior to the scheduled appointment time for the apartment tour to turn on the lights, open all blinds, and adjust the thermostat to a comfortable temperature.
In addition, make sure there are no unpleasant odors present anywhere within the unit and that every surface has been thoroughly cleaned.
The fact that everything appears to have just been moved in will demonstrate to the potential renter that you take pride in maintaining the property.
When prospects see themselves living in this space, they are much more likely to sign a lease on-site during the tour.
Highlight Amenities Renters Actually Value
While providing generic information about the characteristics of each rental property during a viewing will provide little benefit to closing a renter, highlighting aspects of the rental property that are currently in high demand.
Amenities such as in-unit laundry facilities, assigned parking spaces, and proximity to public transportation will benefit closings.
Bay Property Management Group Northern Virginia can help landlords better understand local market trends to highlight the specific amenities that renters value most.
This allows them to identify which rental property features should be emphasized to effectively attract renters in their location.
Communicate the Look and Lease Special Clearly
Mention the incentive early in the tour and reinforce it before they leave.
Frame it as an exclusive offer available for a limited time (not a desperate discount), and those who see you are offering real value will be motivated to take action immediately, especially if they know the offer expires within 24 to 48 hours of their visit.
Follow Up Within Hours, Not Days
After the prospect has toured your property, send an email/text message thanking them for visiting and highlighting key highlights of the property.
Include an application link in the follow-up.
The sooner you can get back in touch with a prospect, the better chance you have of keeping your property top of mind for them, and the greater likelihood that they view you as a professional.
Many landlords wait until later to send follow-up correspondence to prospects; being early often determines who signs first.
Make the Application Process Effortless
Create online applications with mobile-friendly forms and clear instructions.
Use a pre-qualification form before the tour so approved applicants can sign immediately upon completion.
Every extra step (i.e., printing forms, mailing checks, waiting for callbacks) provides additional opportunity for second-guessing.
Streamlining the path from tour to signature converts interest into commitment before competitors even respond.
Overcome Objections Before They Solidify
Pay close attention during the tour and proactively address any concerns the prospect raises.
For example, if a prospect expresses doubts about closet space, suggest storage solutions.
If a prospect mentions another property, highlight what sets your property apart.
Converting uncertainty into reassurance on the spot prevents small doubts from growing into deal-breakers once the prospect leaves. Confidence closes leases.
Conclusion
Vacancy is an opportunity killer that can quickly deplete profits.
Therefore, converting prospect tours into signed leases has to be done.
Clean the vacant unit thoroughly; show prospects all the features they really want in a rental property; and offer a real “Look & Lease” (a time-sensitive promotion) to create a sense of urgency without putting pressure on them.
Send follow-up communications to prospects as soon as possible after their tour; streamline your application process for them; and address their objections at the same time.
Utilize current local market information to provide prospects with insight as to what they are looking for most.
Eliminate each obstacle to signing, and you will reduce vacancy windows and protect your rental income.
