Improve your agent-to-unit ratio
The “how” and “why” behind Funnel’s latest ROI calculator helps multifamily operators and leaders understand the impact the new operating model can have on your business.
We get it… so many companies are throwing “too good to be true” numbers around that it makes us all a little, ok a lot, skeptical when we hear yet another miracle breakthrough. Funnel has ROI calculators, backed by our client’s actual results leveraging Funnel, and in this case the new operating model.
While often these calculators are helpful, they can also bring up more questions than answers.
We wanted to give you both: ROI and a cheat sheet on how we did the homework for you.
But before we get too carried away:
Use the calculator below to see how Funnel can increase your operating margins.
10K units + 1:100 ratio
To make our answers based on nice, round numbers, in this blog, we’ll assume you put in the numbers for a 10,000-unit portfolio. (We know we know, it would be 10x more likely to be 10,027 units, 10,003 units, or some other almost-round-but-not-quite-round number, but for the sake of an example we’re using 10K.)
We also made our calculations based on moving away from the 1:100 legacy staffing model that assumes one team member is needed for every 100 team members. For a number of reasons that are not a secret to those who have worked onsite, this 1:100 model is broken:
- Extremely limited career pathing opportunities for team members.
- Team members burn out serving as jack-of-all-trades team members instead of specialists in their specific areas.
- Does not allow team members to play to their strengths.
For more about this, please read this article about centralization, and Camden Property Trusts’ results from moving away from the 1:100 model to provide a better team member experience.
Results + how the calculator works
Number of units possible on Funnel
For a 10,000-unit portfolio using Funnel, that shifted to the new operating model, we’ve shown with our customer data to improve the agent-to-unit ratio by 20%. What that means: if you had the legacy industry-standard agent-to-unit ratio of 1:100, you would be able to staff 20% more apartment homes in your portfolio, with the same team, because of the changes you were able to make through Funnel.
We know that moves like this are also based a bit on the hypothetical: we know you can’t simply add 20% more units without having to move around, or restructure current teams. We also know change in any business is inevitable, and by making the change to the new operating model you’re providing more fulfilling and engaging careers for specialists in their specific role which impacts everything: retention, customer service, and company growth. For those short-term changes, there are huge long-term gains and advantages.
Net number of new units
This one is pretty straightforward, it is the 20% more units that your team is able to staff.
Number of employees needed (without Funnel)
This number is also based on the good ‘ol 1:100 staffing ratio. Without Funnel, to add the net new units to your portfolio, at the old legacy staffing ratio you would have needed to hire this number of team members.
Since you were able to literally operate more units, with the same team you’ve always had (i.e. not hire the additional people from the number above), that’s money you would have otherwise spent to grow the portfolio. Assume each of these team members you had to hire without Funnel, are paid $25 per hour, for an annual salary of $52,000 per year. THAT’S HOW MUCH YOU’RE SAVING. Literally millions, which doesn’t count in training, retention, hiring for the team members who do decide to leave. It adds up quickly.
ROI = return on investment or Renters obviously incredibly-happy?
We’ll say: incredibly-happy. If you have more questions about the results our partners are seeing, check out the case study section on our resource page.