Pinpointing your properties prime target market is an essential part of being a property manager. How can you expect to market a property successfully if you don’t understand who you’re selling to? Identifying your target market early is essential for optimizing your properties cash flow.
Similar to that of a reference check, identifying your target market early will help you weed out the tenants who are on the fence or not serious about securing the lease. Instead of booking your weekends full with property viewings, you’ll attract people who are serious about your unit and are likely to request an application form before leaving.
Wanting to identify your rental properties target market? Keep reading to find out below.
Understanding the demographics of your target market will allow you to best relate to them. Different markets search for rentals in different ways. E.g., a generation X renter may check through their network or through seeing various “for rent” signs and newspaper ads. On the other hand, a millennial renter would approach the same situation differently by posting mainly on social media and searching through online listings and resources. Obviously, the two demographics are pleased with different means. You wouldn’t advertise a high maintenance sky rise apartment in downtown for a generation X looking to kick their feet up and retire. In the same way, you wouldn’t rely on street signs online presence to entice millennial renters.
When identifying your target rental market there are hundreds of Demographic details, you could consider. Think about the following factors:
• Marital Status
• Income Group
Remember, you are not narrowing down who you will rent to, that’s discrimination. You are trying to understand better who would want to rent your property the most, and how you are going to market your listings to said demographic.
Don’t fret if every detail doesn’t line up. The purpose of this exercise is to help you understand where to focus your marketing and sales efforts.
Learn from your current tenants.
One of the most useful resources available to a property manager is there current tenants. Find your target market by asking current tenants why they chose to renew their lease with you as opposed to finding a new place. Is it the location? The maintenance services? Amenities? Once you have the answers, you will learn common factors for why tenants are choosing to stay with you, and how you can best reach future renters.
Your present clients will show you a great deal about your properties prime target market. They picked you over the opposition. Evaluate what influences them to stay and make a note of it. There’s always something new you can gain from striking up a conversation with a tenant. Set yourself apart from the competition.
Embrace what makes you different, make it easy to choose you over your competition. When renters are looking for a place to live they don’t want the added stress of worrying about which future landlord to pick. Eliminating that issue from their mind is a sure way to secure new tenants. Think of new ways to enhance the experience in ways that your competitors aren’t.
Relating to your clients on a personal level is crucial. When writing your next advertisement, write it as if you were talking to a close friend, parent or sibling. Include humor where possible and avoid sounding like another emotionless landlord. People want an honest connection, if they trust you, relate to you and ultimately buy into you, that will translate directly into a better business with more cash flow.