One of the main goals among property management teams is growing the business by signing new property owner clients and increasing the number of units they manage.
The key to growing your business, as marketers and entrepreneurs everywhere will tell you, is understanding your prospective clients so you can meet their needs. Understanding your target market and creating buyer personas will help you establish more effective and more cost-effect marketing that:
Communicates a stronger message
Decreases advertising waste
Determines potential challenges
There are more than 22.8 million landlords in the U.S. according to the Rental Protection Agency. That’s a hefty number comprising your target audience. But landlords are a diverse group.
To best serve your future clients and grow your business, it pays to understand the types of individuals who own rental property.
Real estate investors purchase residential properties for the purpose of providing rental housing. This type of owner considers their rental property an investment and are not depending on rental payments for immediate income. They’re inclined to perceive the benefit of spending money on property management to increase the property’s value over time and attract the right type of tenants. Investors look for professional property managers who will look after of all the details and deliver a rent payment check to be used for mortgage payments before going into a savings or investment account.
The DIY Landlord
The DIY landlord enters the rental housing industry either deliberately with hopes of capitalizing on passive income opportunities, or accidentally, via inheritance or as a result of the housing market crash. Regardless of why they entered the rental housing market, the DIY landlord often endeavors to take on all the responsibilities of rental management themselves—from marketing vacancies to screening tenants, chasing down rents, tenant turnover, maintenance, and property emergencies. DIY landlords make excellent potential clients for property managers who can attract them when they find themselves stretched too thin from the stress and time obligations that are indicative of self-managing rental property. Those late-night phone calls, non-paying tenants, and property destruction can overwhelm the DIY landlord.
The Accidental Landlord
Whether the accidental landlord came into rental property ownership through inheritance or due to the housing market crash, he or she never considered owning rental property, but suddenly they’ve become a rental property owner and don’t know how to manage it. Instead of spending the time to learn the ins-and-outs of property management, the accidental landlord will often just find a professional property manager to take care of the property on their behalf. The accidental landlord client may approach you during a stressful period and will benefit from a clear explanation of your management style, a simple explanation of the rental industry, and your role as property manager in the in the owner-manager relationship.
The Discontented Landlord
The discontented landlord has rental property currently managed by a competitor, and he or she is not satisfied with how their properties are being managed. Their dissatisfaction can be the result of vacancy rates, personality disparities, annoyance over management fees, or overall discontent with the property manager’s business practices. The discontented owner has experience working with a property manager and knows at least about the rental business. The fed-up owner is looking for a new property manager and will have specific expectations based on their previous experiences. They have experience working with a property manager and know at least a bit about the rental business.
The discontented owner is looking for a new property manager that can better meet their specific expectations, based on previous experiences.
Understanding the different types of people who own rental housing helps property managers create useful profiles of their target audience that help establish the owners’ needs and wishes so the property manager can best serve them.
A knowledgeable property manager will be better able to attract new business and retain clients by appealing to the owners’ needs during the shopping process for the right property manager.
Understanding the types of rental property owners who are in the market for a property manager will help you establish a targeted sales plan that can prepare you to best appeal to the needs of that particular client.
RentVest Property Management offers customer-centric property management services to property owners in Atlanta, Las Vegas, Dallas, Phoenix, Tucson, Reno, and Hawaii. To learn more about our full-service management benefits, visit the RentVest Property Management website.