To keep your property management company growing, you have to continue to add new properties to your client list. And there’s no better time to do that than now. According to an article by Property Management Insider, ’’By the second quarter of 2016 home ownership had reached its lowest point since the [Census] Bureau began recording it: 62.5%, down 0.9 points year-over-year and 6.7 points from the peak of 69.2% set in fourth quarter 2004. The population of renters has increased since the early 2000s across most age segments.’’
How do you take advantage of the continually growing population of renters? Here’s a list of strategies that will work for your property management company.
Ask for Referrals
As with any industry that involves sales, you have to be unafraid to ask for business to grow. Property managers, by nature, have an abundant list of referral sources close at hand. Ask for referrals from the following groups:
- Satisfied clients ’ There really is no better marketing than the positive word-of-mouth given by happy clients. Ask some of your best clients for referrals. Chances are good that they know other people like themselves who may need your services.
- Realtors ’ While you want to approach realtors with caution because they may view you as direct competition, they can still be a good avenue for referrals. In this market, it is likely that realtors have properties that they simply cannot sell. Consider asking for referrals to see if the homeowners want to consider using their properties as rentals.
- Other property managers ’ With other property managers, you want to focus those that do not offer specific types of property that you do. Conversely, if they offer property types that you don’t, offer to make the referral arrangement reciprocal.
Find Networking Opportunities
Property management companies are no different than any other sales business, and that means that you need to increase your visibility and make connections with businesses and people who can help your company grow. Landlord Sidekick says this in a blog post about growing your business, ’’Good networking skills are crucial to any business, so get out there and meet people.’’
Contact Investors Organizations
It’s no secret that property managers often get a bum rap with community investors, but it is still worth it to contact them and attempt to build a working relationship. You can show them that you have a reputable business and that you have their best interests, as well as your own, in mind.
Work with Home Owners Associations (HOA)
Most home owners associations are not excited when owners in their communities choose to rent out their homes. So approaching HOAs to offer your services has to be handled with care. Stress the fact that by using your property management company, they will be assured that you will make sure that renters comply with their rules and regulations and that you will work with the HOA to come up with and enforce strict rental plans.
Consider Search Engine Marketing (SEM)
Using search engine marketing is a great way to get customers to your website. It’s a little bit more complicated than increasing traffic, thereby increasing sales. You have to be sure that you are directing the traffic to the right area of your site so that it will increase the chances that you can convert them into actual sales, and that’s easier said than done. Of course, once you do garner interest, you have to make sure that your follow-up and customer service are spot-on.
Obtain Rental Report Databases
Rental reports have a lot of useful information that you can gather and use to determine the best rental rates and decrease the vacant time for the properties you manage. Sites like Rentometer.com can provide other rental rates in the same area as your property allowing you to set the most profitable, yet comparable, rates for the homes you manage. That’s a big draw for future clients.
Paying for leads is often one of the most effective ways to obtain new clientele, although perhaps the most disliked. It means cold-calling and research, and that may not be your favorite thing. It is worth considering though during slow times, and if you have enough time or staff to make calls. If you do choose to buy lead lists, be sure that you have a customer relationship management (CRM) solution that will help you by automating much of the work that is required. The right sales automation software can make all the difference.
Learn Cold Email Techniques that will Grow Your Business!
We built two consulting agency businesses from scratch using these techniques.