Single-family rentals or homes built for renting are currently the top performing real estate asset class. They make up about a third of the U.S. housing market inventory, and the pandemic has made single-family units even more desirable. For this reason, the demand has increased dramatically, as people seek safer (less dense) environments and larger spaces where they can adapt to both their daily life and their work areas without worrying about maintenance.
The financial aspect associated with LICOs for tenants is attractive compared to homeownership – economic volatility persists and some may find it difficult to qualify for a mortgage. Not to mention that many might not be able to pay the loan if it is offered. There is also the need for flexibility to be able to relocate in the future, as no one really knows when or if they will have to return to the office.
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All of this attracted investors to SFRs and put developers to work. Currently, the SFR inventory available is limited, but growing. According to John Burns Real Estate Consulting, nearly 12% of new single-family construction this year will be in rental properties. According to Yardi Matrix data, there is a significant regional disparity in properties under construction: more than two-thirds are in secondary markets and the rest in tertiary markets.
But the marketing of SFRs is not the same as for a traditional co-ownership. âThe biggest difference in marketing between single-family and multi-family rentals is the need for awareness, as many consumers don’t even realize it’s an option. It is the education of current multi-family residents that single-family rentals are an option for them now, âsaid Lisa Kennedy, regional manager at TBD Management, the property management arm of Wan Bridge. MHN.
Another difference, she added, is “the reputation of scattered houses that are not managed properly.” But, especially since the onset of the pandemic, there are owners who provide five-star service and a hassle-free life by maintaining the property through an on-site management team. This concept is new for single-family homes but very traditional for multi-family homes.
With an increasing number of single-family rental housing units, there is a growing need to develop attractive ways to market these assets. If you have SFRs in your portfolio, here’s what you should consider when developing your marketing strategy.
Know your tenants, use their meeting places
Revived by COVID-19, SFRs are in great demand, especially among young families who want to leave urban apartments and gain more space for their children or pets. Because many of those families who wanted to move to suburban housing either couldn’t buy or just didn’t want to take on the responsibilities that come with homeownership, SFR is the best solution.
This means that you need to tailor the presentation of your property to the audience you hope to attract. Because technology is available to everyone at all times, and because Millennials and Gen Zers are both comfortable signing a lease for a property they’ve only seen online, as an SFR operator, you must focus your attention on online platforms and social networks. networks. For example, YPulse’s recent Social Media Behavior Report found that Millennials spend around 3.8 hours a day on social media. Gen Z is even more connected to the online environment, spending an average of 4.5 hours per day on these platforms.
âAn important tip in SFR marketing is the need to be very specific in your choice of words, as many consumers assume that if you build multiple single family homes in one location, they are for sale,â Kennedy explained. âAll signage and promotional material should clearly state that you are a rental community and not a selling community. “
Improve your SEO tactics and make sure the keywords used on your website, asset categorization, status updates, and individual reviews are relevant to SFR prospects, this will help your property show up in the top spots. google searches. Customize as much as you can, as standardized language can create confusion which can turn into a loss of leads. One suggestion is to add a local map pack as this can increase your property in the top three results on Google which translates to over 40% of clicks.
Write a well-crafted property description and, in addition to the basics – price, size, address – include information on rent payment options, pet policy, nearby services (schools, hospitals, grocery stores, etc.).
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Prepare the property
Even if it is a rental, the property will become someone’s home. Before you even register it online, make sure it’s ready to move in. If it has been rented before, call the professional cleaners, repaint if necessary, replace what is damaged and, if necessary, perform updates. A “rentable” sign on the front lawn is also a good way to bring visibility to your rental, and it also promotes word of mouth, which can work wonders.
And, we’ve said it before: photos are the best tool for inviting a future tenant into your rental, and this also applies to SFR homes. Make sure you take realistic photos and make good use of lighting.
A little effort at the beginning will pay off; after all, renters who choose to live in houses live there longer than those who rent apartments.