The American Dream Redefined

A recent survey found that more than a quarter of Americans currently renting houses and apartments have no intention to ever buy a home.

The survey, by real estate search site Trulia.com, found 27 percent of renters do not plan to ever buy a home. Although 72 percent still expect to buy eventually, that proportion is down from 77 percent just six months ago.

So, is the American Dream of owning a home fading away?
No. But it is being redefined.

People are taking an extra hard look at the pros and cons of home ownership. And for many, renting a place that really fits their needs is the dream.

This is an opportunity for landlords! It means three things:

1) Attract the right tenants. The most successful landlords and property managers know that most tenant problems can be avoided with proper screening upfront, particularly with background and credit checks.

2) Customer satisfaction is more important than ever. Meeting the needs of your tenants pays off as they stay with you month-after-month, year-after-year. Think like a tenant instead of a landlord, and you will start to see opportunities to generate more money from your renters. Not just by raising the rent, but by being opportunistic about how you can better meet tenant needs.

3) Make a new goal - your rental units can be the last and only place your tenants need. Strive to make your properties a place where your tenants can truly settle in and call home.

The survey also found that of those who do hope to become homeowners, two thirds say they will wait two years or more. So, start engaging with your tenants today to build a more successful landlord-tenant relationship. It’s a win-win for both of you!

But what does it mean to “engage your tenants?”
Well, start by communicating. Call your tenants or drop by to see if they have any new needs. You just might learn that they are expecting a new baby, have bought a new car, or recently started a new job.

Be opportunistic and think of how you can make money by responding to new and evolving needs of your tenants
Some examples -
• New baby? Recommend a local babysitter or daycare provider. And give them the opportunity to upgrade to a new unit or home with more space, nicer amenities, a yard for kids to play in, etc.

• Just bought a new car? Give them a coupon for a free car wash. And a great monthly rate to lease a carport or garage that will protect their new treasure.

• Started a new job? Give them a popular audio book on CD or tape. And do you own another property closer to their new work? If so, give them the option to move with a discount on the first month’s rent and a free moving truck to cut their commute down.

These are ways that the best landlords keep good tenants. And keep them happy. It’s so rare in the rental industry to find a landlord who thinks from this perspective. But you can be the first and gain a huge advantage over every other landlord in your market as many of your tenants live out their own American Dream in one of your properties!

Is Turnover Killing Your Profits?

Is Renter Turnover Killing Your Profits?
By Drew DeMasters

Author of Landlord Marketing Secrets

You probably agree that almost nothing is worse than having an empty rental property. Two kinds of costs can hit hard: real costs (like utilities, taxes, maintenance, and cleaning) and opportunity costs (like lost rental income and higher risk of crime).

In this business, we call it the “occupancy rate”. But that’s kind of a cold, impersonal statistic. We can’t really tackle the problem until we stop thinking at the property-unit level and start thinking at the customer level – each of your individual renters who occupy your properties. Here’s a three-point plan to reduce renter turnover.

1. Customer satisfaction.
   Do you really know your renters? You should. How they found you, why they chose to rent from you, if they are satisfied with their experience, if they will recommend others to your properties.

   Answers to these questions are valuable insight you can act on to learn more about who your renters are. But most importantly, it gives you the chance to understand why customers might be leaving you and if there’s anything you can do to prevent it. (there always is, by the way) It’s often because of loud or annoying neighbors, petty crime, or a slow response to maintenance needs. These are things that push your renters to the breaking point, and rightly so.

   So, how do you know if your renters are satisfied? Ask them. Send out a short 5 or 10 question survey to request feedback. And when they give you feedback, share what you learn with your renters. They will appreciate your effort to know them better. Chances are, they’ve never been asked before by their landlord. And you will definitely learn something.

2. Show the value (meet customer needs).
   What makes you different from every other landlord or apartment manager in the market? There has to be something, why else are you in business? Consider what your “competitive advantage” or “unique selling proposition” is. If I am looking for a place to rent, what would tell me about your rental units? Why should I consider renting with you?

   To convince me to rent from you, you need to show me what sets you apart from the dozen other places I looked at this week.

   But to keep me renting with you month after month, year after year, it takes more. You have to show me the value. In other words, you have to keep earning my business.

   So, what are you doing to make your renters stay with you? Send a monthly community newsletter with helpful living tips, recipes, entertainment options, etc. Remind your renters of the benefits you offer: gym, swimming pool, covered parking, convenient location, mail pick-up, etc. Create reasons to interact and engage with your renters. Plan a seasonal party or BBQ. Organize a ping-pong or volleyball tournament. Dream up safe neighborhood activities and events for your renters’ kids. Think outside of the box, and you will begin to see your renters returning the favor through their continued loyalty.

3. Reward your best customers.
   And speaking of loyalty, say “thank you” to your best, most long-term renters. Do something really special to make them feel important. Why? Because they are your biggest advocates. Your future growth as a landlord rests squarely on the shoulders of your best renters.

   And remember how much they are worth to you. Calculate the profits you’ve made over the lifetime of each your best renters. It’s thousands or even tens of thousands of dollars.

   Now imagine one of those best renters moving out. That’s a huge loss you don’t want to see! So, minimize your risk by earning the continued loyalty of your best renters.

Drew DeMasters is a landlord and marketing strategist. His new book Landlord Marketing Secrets is available at www.landlordmarketingsecrets.com
He can be reached at ddemasters@landlordmarketingsecrets.com