Tenant Marketing and Retention

Attracting and keeping the right tenants is what property management is all about. This is one of the most valuable services that a firm can provide, so it’s important to make sure that you’ll be getting your money’s worth by examining their process for each task. Here’s a list of issues to review and questions to ask any property management firms that you interview.

Where do you advertise your rental listings?

The more exposure the better, unless the management company is billing you to advertise in places and ways that aren’t effective. Expect your listings to be on numerous paid and free websites, and expect your manager to use offline channels as well, such as:

• print classifieds
• signs
• the MLS
• fliers
• a 24-hour hotline where prospective tenants can listen to detailed information about the property

How effective are your ads? 

It’s a good idea to find some of the property manager’s rental ads to see if they stand out from the competition. How informative and compelling are they? Any management company can list basic information on multiple websites. You need a company that understands how to optimize their advertisements for maximum impact. The ads should include all the information required to answer people’s questions, but they should also incorporate good copywriting that engages the reader on an emotional level.

What’s your current vacancy rate?

This is very telling. If the company can’t get or keep other people’s tenants very well, there’s no reason to think that yours will be any different.

How long does it usually take you to fill vacancies on average?

If it’s longer than a month, keep looking. Regardless of what they tell you, there’s no guarantee it will hold up.

What’s your cost per lead?

If they can readily provide an answer, you know you’re dealing with a manager who closely tracks the impact of their marketing and advertising dollars.

Who fields inbound leads resulting from rental ads?

A property manager’s system is only as good as the weakest link in the chain. If well-placed and well-written rental ads direct leads to someone unqualified to handle them, then all that effort is wasted.

How quickly do you return prospective tenants’ calls and emails?

The shorter the better. You’re looking for a property management company that’s aggressive in responding to and nurturing leads at every point in the sales cycle. This can be an area of weakness for companies who are less sales-oriented, and if neglected, it’ll mean longer vacancy periods. If you want to test the answer they give you, ping the info on one of their ads and see how long it takes them to get back to you.

What do you do to prepare a home for showings? Do you take steps to ensure optimal presentation both inside and outside?

Showings are where tenant decisions are made, so you want your management company to pay attention to the details that matter.

Will you show a unit if it’s occupied?

This is advisable as long as the current tenant is informed, the unit is presentable and the necessary precautions are taken to minimize the intrusion and disturbance. If the unit is showable, then ads should be placed prior to the move-out date so the vacancy period is minimized.

Who shows the units, and do you allow unsupervised showings from a lock box?

Successful showings require the manager to be organized and ready to sell. Prospective tenants will have lots of questions about the property, the neighborhood, the lease, etc. You’ll want to hire a manager that’s able to answer these questions and sell tenants on the benefits of the property. Using a lock box for showings hampers this process and also introduces the risk of vandalism, theft and rental fraud when unsupervised tenants enter your property.

How many times will you show the unit during the week and the weekend?

Watch out for managers who are not willing to put in the time necessary to maximize the number of showings for your property.

What kind of a tenant retention program do you have in place?

Increasing average tenancy periods will be a huge boost to your business. This translates to fewer turnovers and lower tenant placement costs. It also ensures a steady income stream and usually means that you have responsible, well-behaved tenants. Pay careful attention to how the property manager answers this question. Does it seem like tenant retention is a priority or an afterthought? A good retention program involves providing quick responses to tenant needs, establishing regular contact to assess needs and ask for feedback, providing appropriate financial incentives, giving notice that rent increases are coming, and being willing to explain rent increases. Additional touches that engender goodwill include seasonal cards or gifts, a welcome packet and a newsletter.

As any landlord veteran will tell you, if your unit is priced reasonably, getting applicants is easy. It’s finding QUALIFIED tenants that’s challenging. 

What should you expect from a management company when it comes to tenant screening? Our next post will explain that in detail.

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The Realty Medics are the nation’s leaders in “Rocket Science Renting”: Rocket Science Renting is about keeping your life simple by letting someone else handle the complex work of property management for you. It’s knowing that your property is running smoothly, with no hiccups or glitches. It’s hyper-responsive customer service that gives you property management peace of mind. It’s advanced technology that could only be designed by a former NASA engineer like our owner, Ben Sencenbaugh. And it’s knowing that you’re always getting maximum value and ROI for your investment.