By Roger Daniel, President and Founder of DMG
Multifamily managers know that signs of spring mean one thing – leasing season. In the hands of the wrong management company, however, leasing commissions can be looked at solely as a profit center to be used at any possible opportunity.
The best operators understand that leasing with contract agents should be looked at as a tool, not a profit center. Additionally, the tool is not one-size fits all. Operators need to look at the needs of the building, portfolio and market to determine what type of leasing should be deployed successfully.
At DMG, we deploy various leasing strategies including both onsite leasing teams as well as roaming, contracted leasing agents and teams.
We recommend an onsite leasing agents for larger, stabilized properties with ongoing leasing needs. This onsite leasing agent is fully dedicated to that property, helping to not only secure new residents, but also to build relationships after the move-in. Onsite leasing agents become part of the property’s culture, often working closely with the rest of the onsite management staff to create community, develop events, assist with renewals and contribute to long-term resident satisfaction. This model typically has the onsite leasing agent paid a salary plus a modest per-lease commission, rather than the larger, full-month commission often paid to contracted leasing agents who are solely commission based. When there is a property with scale that has ongoing leasingneeds, this model is more cost-efficient.
DMG also deploys contracted leasing agents that provide support across our management portfolio. While not onsite, these agents will know the DMG portfolio well, take time to get to know prospective residents and help them find the ideal new home. This is a model that works well for scattered portfolios, typically in urban settings.
Contracted agents can also be a tool that is leveraged when there is a lease-up or when a building has significant seasonal needs. While this model is the most expensive, it can work quickly so that the property reaches occupancy targets efficiently, preventing lingering vacancy challenges.
At DMG, we work closely with clients to determine which leasing strategy will most benefit their property or portfolio to ensure high occupancy, long-term expense efficiencies and, therefore, value creation.