Virtually every month I meet or hear of a rental income property owner who wants to expand their portfolio. They’re searching throughout the 50 states for deals that make sense to them. Of course finding a lucrative “cap rate” is a challenge in today’s world. With interest rates still at historical lows, the return-on-investment (ROI) is also very low.
The “cap rate”, aka capitalization rate, is the rate of return on a real estate investment property based on the income that the property is expected to generate. Are you aware of the cap rates nationwide? Knowing what they are, especially in your state and the surrounding states in your region gives you a competitive advantage. On your web page or social media page you’d be able to offer your insights.
Those insights based on up-to-date information and exceptional awareness will attract prospective clients who are looking for reliable, competent property managers to do business with. Are you one?
In other words, are you more informed and more savvy then other property managers? For example, do you know what ROI is all about? Are you conversant on these important terms of business effectiveness?
The ROI is, generally speaking, a performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of similar investments. It’s a very important moving target.
To measure the amount of return an investor will receive relative to the cost of that investment, minus management and other overhead expenses, will give prospective clients a “realistic” ROI. It’s also a valuable talking point that can help you communicate professionally with existing clients as well.
Candidly, if you’re an honest, reliable property manager, there are hundreds, even thousand of “other managers’ clients” who need you and are most likely looking for someone like you this very moment! How are these distressed and discouraged residential single or multi-family rental property owners going to find you? How can prospective clients know you exist and know your core competencies?
If they’re not fortunate enough to be referred to you, then they need a media that will help them to discover you. An ad, an email, a banner, a great website that clearly and professionally says, “If you own rental property and you want dependable, outstanding service we’re here for you!” is imperative.
Before you begin your ad campaign or employ whatever medium is most affordable for you, be absolutely certain you can live up to the hype. Can you “under promise and over deliver”? Most landlords and residential rental property owners have an easier time finding a mortgage, a refinance, or more potential rentals to buy than finding a property manager who keeps their word.
If you’re a reliable, diligent, well-informed and very competent as a property manager, then you may be that sought-after exception. Again I ask, “Have you found an effective way to tell the world about you?” Make sure you ask your existing clients if they’ll give testimonials, referrals and recommendations. Have some of them on your impressive website. You do have an impressive website? Your reputation is your most important asset when it comes to the property management business. Insure that yours is the very best possible, and then spread the word! The world is looking for you now.