Types of Rental Property Owners That Will Grow Your Property Management Business
Property managers can benefit from growth strategies that target rental property owners in order to expand their management portfolio and grow their business. Understanding the types of rental property owners and how to attract them will help property managers expand their business and increase profits.
According to research, 37% of U.S. households are renters a number that has been growing and is
at its largest in the last 50 years; creating a strong market for those looking to capitalize
on this housing trend.
Property managers and landlords collected $485 billion in rent payments across the U.S., making rental ownership and management a strong industry. Rental housing creates profitable opportunities for property managers and owners who understand the demand and needs of the rental housing market.
Rental property owners have the opportunity to provide renter-occupied housing and build their wealth through rental income. And property managers can grow their business by attracting owners who need quality management of their rental properties.
Types of Rental Property Owners
Individual investors purchased residential properties with the intention of using them for rental housing. These individuals consider their rental property an investment, and they are not relying on the rental payments for immediate income.Investors tend to understand the benefit of spending money on property maintenance and updates in order to increase the property’s value over time and attract the right type of tenants.
What they are looking for: Professional property managers who will take care of all the details and provide a rent payment check that will get used for mortgage payments before going into a savings or investment account.
The DIY landlord got into the rental housing industry either intentionally, with the hopes of capitalizing on passive income opportunities, or accidentally, through an inheritance or as a result of the housing market crash.Regardless of how they entered the market, the DIY landlord attempts to take care of all the responsibilities of rental management themselves from marketing vacancies, screening tenants, chasing down rent, tenant turnover, maintenance, and property emergencies.
What they are looking for: DIY landlords are excellent potential clients for property managers who can attract the DIY, when they reach their breaking point from the time-commitment and stress that goes along with self-managing rental property, like late-night phone calls, non-payers, and property destroyers.
Whether through inheritance or due to the housing market crash, the accidental landlord never considered owning rental property as an investment opportunity but suddenly owns a home he doesn’t know how to manage.Rather than spending the time to learn the ins-and-outs of property management, a simpler solution is to find a professional property manager who can take care of the property for him.
What they are looking for: The accidental landlord client may have come to you during a stressful life-event and will benefit from a clear explanation of your management style and a simplified explanation of the rental industry and your role in the owner-manager relationship.
The Fed-up owner has the rental property under the management of a competitor but is not satisfied with how their properties are managed. Their discontent can be due to vacancies rates, personality differences, frustration with management fees, or overall dissatisfaction with the competitor's business practices.The fed-up owner has experience with working with a property manager and tends to know at least a little bit about the rental business.
What they are looking for: The fed-up owner is looking for a new property manager and will have specific expectations based on their previous experiences.
Understanding the types of individuals who own rental housing, helps property managers
create usable profiles of their target audience.These profiles establish the needs and
wants of individual owners so the property manager can best serve them.
A property manager will be able to attract new business and retain clients by appealing what the owner needs during their buying process for the right property manager.
Finding new owners to grow your property management business
Once you’ve identified your ideal client profile, you’ll want to attract these owners and
demonstrate the benefits of property management versus self-managed rentals.
New customer acquisition is an important part of every business. Property managers can find great success from exercising these key strategies for acquiring new owners and building their client base.
Referrals for growing your property management business
You might assume that your network already recommends your management services when
rental properties pop up as the topic of conversation. Having this type of assumption
can lead to zero leads from your immediate network if you don’t let people know exactly
what you do.
Marketing yourself and your business to your network is as easy as striking up a conversation and engaging them in a fun discussion about the housing market and real estate investments. And no one can resist a juicy tenant horror story (just remember to keep names confidential). If people know what you do, they will remember to recommend you or reference your business.
Your referral network should include the following people:
Client referrals - your current clients probably know other rental
property owners and can recommend your services to them.
Friend referrals - give your friends a clear understanding of what you do and you help your clients solve renter related problems, so they can easily think of recommending you.
Family referrals - extending your services to their social network opens up lots of doors to connect with people you don’t usually interact with.
In addition to your personal network, consider building relationships with professional organizations and businesses in your community who will be able to refer your property management services.
Your professional referral network can include: real estate agents, HOAs, other property managers, professional organizations and landlord associations, and local business networks like the Chamber of Commerce or economic development organization.
Marketing your property management business to attract new owners
At a minimum your current and future clients need to be able to easily learn more about you and your rental business. Your marketing plan should include digital and in-person ways to connect with your target audience.
Offer a property management website
Creating a website is a simple way to create an online presence that shares your
services, contact information, and values. Your property management website can
offer information for owners wanting to know about your services and information
for prospective renters to learn about available properties.
You can easily build your own website through wix or weebly which will require a monthly hosting fee. Your property management software should include a property management website at no additional cost. Or you can enlist the help of a company that specializes in building property management websites for you.
It will be helpful to learn the basics of search engine optimization (SEO) for your property management website so you show up high on the list for search engines. It can be as simple as using the correct words and copy on your website.
Create social media profiles and business pages
Facebook and Google My Business allow you to create business profiles for your property management company. These sites allow you to share contact information and locations and often show up high on search engines. You can also use these sites to connect with your renters and share rental vacancies.
One of the best ways to build your property management business is to be
available for in-person communication with your prospective clients, tenants,
and community. Provide responses to phone calls, texts, emails, and all inquiries.
While you might not be able to respond right away, acknowledging your potential
clients and letting them know when you will respond can help build trust.
According to data shared by Project.co, 99% of people say it’s important that a business communicates effectively with them as a customer. And 68% of people say they’ve stopped dealing with a company and moved to a competitor due to poor business communication skills.
Beyond responding to incoming communication, positioning yourself as property management professional in your area through community events will help you build your referral network.
Property managers can grow their business by attracting new rental propety
owners and adding more units to their management portfolio. Since property
managers typically receive a percentage of rent received as their income,
each new property can positively impact their revenue.
Understanding the types of people who own rental properties will help you meet their needs and provide services that will help them say yes to working with you. You can find new owner clients by building your referral network, and focusing on your digital and in-person marketing.