How Much $$$?
Are you spending enough resources to market your corporate rental properly?
The key to annual rental revenue success is high occupancy, which can only be achieved with quick turnover between tenants and effectively lining up the new tenant before the pervious one departs.
That’s where marketing plays a significant role. Getting a property rented is about having the right property at the right price and being able to connect with the right tenant.
As a general rule of thumb, corporate housing landlords should dedicate anywhere from one to three percent of their total annual revenue to marketing and advertising their properties.
Here are some other general rules about how to successfully market your property:
Don’t Limit to Local: The majority of people needing furnished housing come from out of state. It’s important your marketing efforts mirror this phenomenon and that you don’t blow your budget only advertising locally.
Beware of Classifieds: Because corporate rentals, by nature, have higher turnover than unfurnished rentals, you need a way to immediately market your property without having to wait for the Sunday classified section to run. And if you post it for free on an Internet list like Craig’s List, you may find that 100 properties within the last hour posted rental properties too and your post is now buried. Having a long-term Internet marketing strategy is the way to go in this business that attracts out-of-towners and may require anywhere from 1-12 different renters per year. Also remember that corporate housing landlords should treat their properties like a hotel. Hotels don’t just advertise when they have vacancy, rather they advertise their rooms year-round.
Understand Craig’s List: While Craig’s List is a great place to market your property for free, it doesn’t come without great risk of attracting the wrong type of renter or wasting your time with the need to re-post your listing time and time again. Remember, most corporate clients will not look on Craig’s List because they don’t have time to inspect the properties to make sure they are legitimate rentals; rather, corporate housing appeals to a different kind of renter who appreciates a more sophisticated marketing effort.
Overall, remember that marketing your property is part of your investment as a corporate housing landlord. Stick to a long-term strategy that targets individuals both inside and outside of your local area and you’ll more likely than not attract quality renters to your property year-round.
Tip! Review the CHBO “by owner” Annual Report for more marketing ideas!