In part one of this blog, we looked at the importance of effective communication as well as the value of setting a detailed marketing plan.
In part two, we’re going to discuss three more important elements that go into finding the best quality tenants for your rent roll.
Inspections: be flexible
When setting open home inspection times for the property, ensure you are flexible and offer private inspections, including after hours and weekends – and communicate that to your investor. If you are doing a 6am OFI or an 8pm private inspection, let them know. This will further show you are going above and beyond for their property.
On top of that, make sure all internet inquiries receive a reply on the same day. I have a rule in my office that all email inquiries are to be responded to immediately. It’s tough, but it makes all the difference.
Reassess the price
It’d the dreaded question no property manager wants to hear, “Why hasn’t my home leased, it’s been two weeks?”
Well, put simply there are two reason – price and marketing.
Could be the price
In this situation, I would provide an updated Comparative Market Analysis (CMA) to your investor to ensure you’ve priced the property competitively. If the property has been shown and has not generated any applications I would suggest that the local area CMA needs to be reviewed. For me this is done weekly, as my role as a business development manager.
As part of my role I need to know what’s for rent, how may days it has taken to lease and the rented price of the home. Providing an updated CMA to an investor is a way they can visually see the information, it’s based on fact and can aid in the next stage of the marketing plan, do we sit tight wait another week? Or do we reduce the price? Do we offer rent free periods? This is a tough discussion to have with your investor.
Could be the marketing
This is a great opportunity to re-write the advertisement, take new photos or re-arrange photos, look at doing an upgrade to the internet sites such as domain.com.au. (For example) by doing this, it may help attract people who might have read the marketing text but the front photo didn’t appeal to them. Also base your marketing on selling the sizzle, in other words the benefits they will have on a tenant living in this home.
Ensure your insurance
As property managers, we need to be aware of our landlord’s insurance policies at all times, but particularly when a home has been vacant for a period of time. Some insurance companies will not cover a home if it is left vacant for 30 days or more. This is a perfect time to remind investors to ensure they have adequate insurance cover for their property.
The insurance should include cover for the building, minimum contents cover for carpets, light fittings, etc. and public liability cover. It may also be prudent for you to advise your clients to take out landlord’s protection insurance policy to cover loss of rent or damage by tenants.
It may also be worth noting that most insurance companies offer a multi-policy discount if you add another insurance policy to your current policy. This could save the investor time and money.
By implementing the steps we've discussed, you'll find it will not only build and maintain your relationship with your investor but it will show them you are a key asset in their wealth creation.
Your knowledge, superior customer service and business-centric approach saves them money and time, and without you they would be worse off. You know that and I know that, but sometimes our clients just need a little reminder.