Operators Shift Marketing Spend from ILS to Direct
Multifamily operators are moving marketing budgets away from expensive Internet Listing Service (ILS) platforms toward more direct digital strategies. A recent podcast advised prioritizing SEO and PPC with capped monthly budgets. The strategy also includes incentivizing site staff with bonuses for named five-star reviews to boost organic search rankings.
- Internet Listing Services (ILS) can carry a high cost-per-lease; one analysis showed an ILS costing $4,000 per lease annually, while a direct pay-per-click (PPC) campaign for the same property had a cost-per-lease of $905. - Direct strategies like PPC for luxury, Class-A apartment properties can range from $425 to $2,650 per month, varying based on the number of units and the competitiveness of the market. Lease-up communities are advised to spend 2.5 to 3 times more on their ad campaigns to fill vacancies quickly. - A significant portion of renters, 81%, consider online reviews important when searching for an apartment, and 71% say negative reviews would deter them from even scheduling a tour. Furthermore, over half of renters will not consider a property with less than a four-star rating. - Properties that feature 10-20 reviews on an ILS have a conversion rate three times higher than listings without reviews. This highlights the value of incentivizing staff to generate positive resident feedback. - Over 87% of renters begin their apartment search on a search engine like Google. A strong SEO strategy allows properties to reach these potential tenants early in their decision-making process, reducing reliance on more expensive third-party listing services. - The Chicago multifamily market is projected to see continued rent growth in 2026, forecasted at approximately 2-3%, driven by a limited supply of new construction. This tight market condition underscores the need for effective marketing to capture demand. - In 2025, about half of multifamily properties are working with flat or reduced marketing budgets compared to the previous year, making cost-effective, high-ROI strategies like SEO and targeted PPC crucial. - Multifamily marketing agencies commonly see clients invest 45-55% of their total marketing budget towards a combination of digital advertising, SEO, and ILS advertising.
