038: Stealth Tenant Marketing

SHOW NOTES FOR EPISODE 038  –  STEALTH TENANT MARKETING

Well, I know you we’re expecting part two of Analyzing Rental Properties today but we have something different to introduce and will resume Analyzing Rental Property – Part 2 next Friday.

In this episode, Bill is taking a radical departure from his regular activities to launch into Stealth Tenant Marketing mode.  He will be flying to Indianapolis to focus full attention on getting units rented in his 22-unit apartment there which is currently at 68% occupancy.  Working in alliance with his property manager, he will be launching a multi-pronged aggressive marketing effort that employs online advertising, networking, on-site promotions, community alliances and referral development, to name a few.  He hopes to boost occupancy to 90% while there.

22-UNIT RE-POSITIONING

• Re-hab/upgrading of the building exterior, common areas, and individual units
• Seeking to upgrade tenant base as
• Employed increased security measures
• A/C given to each tenant
• With that came an 8% rent increase or $30 monthly increase for each tenant because we are improving their home and our rents were 8% under market.

The results

• A few moved out moved out but most stayed
• We already had vacancies when we bought the building.
• New tenants came in at 14% above the previous rent
• We spent nearly $50,000 in improvements
• We currently have 7 vacancies and they aren’t filling up fast enough
• To continue our upgrades we need an increase in cash flow
• November is coming and that is traditionally one of the slowest rental months
• Therefore, we are moving into STEALTH TENANT MODE

STEALTH TENANT MARKETING

• I’m moving into one of the vacant units in the building to better understand the dynamics of living there and better understand the current tenant mindset
• I want to better understand
  • the property
  • tenants
  • the market
• Online Marketing
  • apartments.com
  • hotpads.com
  • Zillow, trulia
  • rentberry.com
• Referral Network
  • Real estate agents
  • Other multifamily owners who don’t have studios
• Community/Neighborhood
  • Churches
  • Community Assistance groups
  • Rehab Facilities
• Large Employer Alliances
  • Offer special discounts
• Networking
  • REI Meetings
  • Meet-ups
  • Kiwanis, Rotary, etc.
• Curbside Promos
  • Signage
  • Special Move-In Offers
• Other
  • Tenant referral bonus program
• Won’t leave until I reach 90% occupancy

Will try to post updates maybe on youtube.com or via periscope.

Until our next podcast, keep moving forward and God bless!

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