Why DOM is not the right metric for leasing

The summer leasing season is quickly approaching. Now is a good time to  rethink how you track your vacancies. 

Most teams measure Days on Market (DOM) but in building RentEngine, we’ve been given an inside look into how top property managers measure leasing.

Instead of relying on DOM, which is reactive, you should consider tracking the Leasing Conversion Rate (LCR). LCR gives you a real leading metric for leasing and helps you take proactive steps before it’s too late.

What is Leasing Conversion Rate (LCR)?

LCR measures how well your team turns leads into applications. The formula is simple:

Calculate your own LCR now with this guide.

What are DOM’s shortfalls?

DOM is by no means a bed metric, but it is a lagging indicator. If a property hits 60+ DOM, the owner is frustrated and you can’t go back in time. 

But high DOM isn’t necessarily the property manager’s fault. Unrealistic owner pricing, seasonal shifts, and even the economy are factors.

Measuring DOM is especially misleading when an owner sets a price that's too high and the home doesn't get any leads. It's also impossible to compare DOM averages across months.

On the other hand, LCR strips out all those external factors and simply measures your team’s ability to turn leads into submitted applications.

Breaking It Down: SCR and TCR

The best leasing teams dig deeper by tracking two key sub-metrics:

Scheduled Conversion Rate (SCR): Scheduled showings / Total leads

Shows how well you respond to leads, answer questions, and schedule tours.

If your SCR is low, it may indicate slow response times, an ineffective scheduling flow, or too many unqualified leads.

BENCHMARK: Strong leasing team have an SCR of 47-52%. In other words, half of all leads schedule a showing.

Tour Conversion Rate (TCR): Completed showings / Total leads

Measures how well you engage prospects before their showings and how smooth the showing process is.

A low TCR might mean prospects are losing interest before the tour, scheduling too far in advance, or abandoning the tour if the process/lockbox is confusing.

BENCHMARK: Strong leasing team have a TCR of 19-26%. In other words, one quarter of all leads complete a showing.

How to Improve Your Leasing Performance

By tracking LCR, SCR, and TCR, you can pinpoint bottlenecks and make data-driven improvements. 

Property managers use RentEngine to increase their conversion rates:

1. Speed up response times: AI-powered lead response immediately engages new leads, even after hours, and helps them schedule.

2. Fast & safe scheduling: Prospects get a easy scheduling experience, with secure prescreening to stamp out scammers.

3. Easy showings: RentEngine integrates with SentriLock and Codebox for secure and intuitive self-showings. Or use Smart Scheduling to help your agents show it without the coordination headaches.

4. Proactive lead nurturing: Consistent follow-ups keep prospects engaged at every step, using human-like messaging to increase conversion rates before and after the showing.

Want to upgrade your conversion rates? Check out RentEngine’s all-in-one leasing platform for property managers.