How Multifamily Operators Struggle to Measure Marketing ROI

In a market where every dollar counts and every lease matters, multifamily operators are under pressure to justify spending, especially in marketing. But here’s the truth: marketing isn’t a mystery. It’s a measurable engine for occupancy, retention, and revenue.

The key is knowing what to track, how to optimize it, and how to communicate the results effectively.

1. Start with the Metrics That Matter

Operators often default to vanity metrics, such as likes, impressions, or website visits. These metrics have worth, but ROI lives in the numbers that move the bottom line:

• Cost per lead (CPL): How much are you spending to generate a qualified inquiry?

• Cost per lease (CPLs): What’s the total marketing cost divided by signed leases?

• Lead-to-lease conversion rate: Are your campaigns attracting quality prospects?

• Time to lease: How quickly are leads converted compared to historical averages?

• Retention uplift: Are your brand and nurture efforts improving, or hindering, renewal rates?

2. Tie Marketing to NOI

Marketing ROI isn’t just about filling units; it is about improving Net Operating Income. For example:

• A $1,200/month unit leased 15 days faster saves $600 in vacancy loss.

• A $10,000 campaign that yields 12 leases has a cost per lease of $833, which is often far lower than market concessions.

• A 5% increase in resident retention can reduce turnover costs and stabilize cash flow.

3. Segment and Attribute Strategically

Operators should break down performance by:

• Channel (Google Ads, ILS, social, email, signage)

• Audience (local renters, relocators, students, seniors)

• Creative (carousel vs. video, brand vs. promo)

Utilize UTM tracking, CRM tags, and call tracking to attribute leads accurately. If you’re not tagging, you’re guessing.

4. Benchmark and Compare

Don’t just measure in isolation, but compare:

• Current vs. historical performance

• Property vs. portfolio averages

• Marketing vs. other lease-driving tactics (e.g., concessions)

This helps operators see where marketing is outperforming, and where it needs refinement.

5. Tell the Story with Clarity

Data is powerful, but narrative drives decisions. Operators should present ROI in a way that resonates with stakeholders:

• “We reduced vacancy loss by $18K this quarter through targeted campaigns.”

• “Our CPL dropped 22% after refining audience targeting.”

• “Retention improved 7% after launching our resident brand refresh.”

6. Partner for Performance

Fractional CMOs, like Lustra, help operators not only execute campaigns but also build systems for measurement, optimization, and storytelling. With strategic oversight, operators can turn marketing from a cost center into a growth engine.