This report goes over the typical Alcove lease up period and how pricing, availability date, marketing materials, access for tours, and seasonality influence this metric.
What does the typical Alcove lease up period look like?
Across the 360 mostly recently leased properties , 60% of properties leased up within 30 days, and 80% of properties leased up within 60 days. The median number of days it takes to lease up a home on Alcove is 24 days.
*As calculated by the number of days taken to fill from when the first tenant moves in
How does pricing affect lease up time?
Pricing plays an important role in the lease-up time of properties, typically showing a strong correlation. Properly priced homes tend to lease faster. To maximize the Net Operating Income (NOI) of a property, owners need to find the right balance between maximizing rent rates and occupancy levels. Alcove's Smart Pricing tool is designed to help optimize this balance. With Smart Pricing activated, 85% of homes are leased within 30 days, and 96% within 60 days.
Smart Pricing On: 14 days
Smart Pricing Off: 37 days
*Includes data from homes leased since Alcove Smart Pricing was released in May 2023
What is Alcove Smart Pricing?
Alcove Smart Pricing integrates algorithmic and human insight to determine the optimal rate for your room at any given time. Leveraging data from our extensive portfolio of bedrooms and hundreds of leases signed each month, our system identifies comparable offerings by considering factors such as location, bathroom type, and seasonal trends. Complementing this approach, our dedicated tenant leasing team handles over 1000 inquiries daily, offering invaluable property-specific pricing feedback that they input into the Smart Pricing system. Additionally, any rooms with over 15 days of vacancy will be flagged by our team for review to discuss further pricing, promotion and lease up strategies for the home.
For instructions on how to enable Smart Pricing, please refer to this article.
What other factors influence lease up period?
- Availability Date: Most of our users are looking to move within the next 30 days, so bedrooms available now will lease at a faster rate than bedrooms available in the future.
- Marketing Materials: 59% of applicants are moving from out of state and do not have the ability to tour. Because of this, applicants typically want to see bedroom photos, bedroom dimensions and/or a virtual tour before applying to the home. Homes without marketing materials currently available will see a slower lease up period.
- Access for Tours: 28% of Alcove applicants take a tour before signing a lease. If a property is not available to tour, applicants will often apply and sign elsewhere rather than wait for tour access. This results in a slower lease up period for homes without currently available tour access.
- Seasonality: While we have thousands of leads looking for rooms each month, we typically see the strongest demand in March - August.
What does occupancy look like after the initial lease up period?
After the initial lease up period, Alcove is able to maintain close to 100% occupancy as ~50% of tenants renew and we market any upcoming vacancies 90 days out.