We think you’ll agree with us when we say:
Paying for property management marketing can be expensive!
It requires time and effort in order to get your company showing up on the map (literally) and to show up above your competitors.
Well, it turns out, not every method for getting more doors and growing an owner portfolio has to leave you with bunny ears for your pockets.
For today’s post, we look at alternative ways to gain more revenue for your property management company while not spending a dime.
Here are the 3 tips:
1. Add Sales Revenue without Losing Owners with 1031 Exchanges
If you happen to sell properties in addition to managing them, you need to let your owners know. If they don’t know you sell, and they happen to take their sales business out to another real estate company, that’s a lose-lose scenario for your business.
How do you get revenue from sales without losing homes and owners without shrinking your portfolio in the process?
It’s important to not send out an email blast simply asking your clients to remember you when they want to sell their home. This may inspire clients to sell and you begin to lose property management contracts and your portfolio suffers. You don’t want to end up losing money in the long run to make sales revenue in the short term.
So what do you do?
Think about your ideal client:
Wouldn’t you rather have two homes owned by a client you like, rather than having to find more owners on the Internet?
Send out an email blast targeting owners that have significant equity in their rental homes. Inform them that with a 1031 exchange, they can use the money that they have already invested to purchase other properties, diversify, and have more rent coming in. Then, you’re earning additional management fees from the client, and both of you are growing your portfolio.
*If you are unfamiliar with 1031 exchanges, we have provided some links on the topic at the bottom of this blog.
Even, if you don’t do sales, think about partnering with a realtor who will do 1031 exchanges for you. That will keep good owners, yet still bring in more rental properties to your management business.
2. Leverage Your Vendor Relationships into Management Contracts
You can use your vendors as a referral source! Painters and carpet cleaners are especially helpful. These guys work at homes during tenant turnovers on a regular basis. Sure, they are working for you, but often they will be doing the same thing for self managers.
So talk to them about the places they’re working. Find out if those homes are self-managed or vacant. This can turn into more leads for your company and those vendors know they will receive the painting and carpet cleaning business in return. Let’s face it, a professional property management company is going to require their services more than any self manager. This is a win-win for both companies.
3. Keep in Touch with Prospects Who Say No
Finally, don’t forget about the deals you didn’t close on the first try. These are the individuals who decided to self-manage their property. Or, maybe they thought your rates were too high, so they went with a discount property management company instead.
Call up your self-managing landlords after six months, ask how their new tenants are, and if the screening process went okay. Offer to answer any questions and find out how much time they’re spending over the weekend to maintain their investment property.
Call the prospects who chose a discount management company about nine months in. Ask if they are satisfied and find out if they are getting the level of service that they deserve. Email them links to your great reviews and share your blogs. It’s always a good policy to recycle leads to generate business, and when you track your leads, with a system like Fourandhalf’s Lead Nurturing, you can do that easily.
And for the people who wanted to sell their property? Call them three months later. Find out if the property has sold yet and whether they’d like you to give it a try. Ask if they’ve reconsidered renting it out.
If you have any questions about growing your property management business, we look forward to helping you answer them. Contact us at Fourandhalf – Property Management Marketing.