Most property managers are continually on the lookout for new clients. More properties mean adding to the bottom line. However, small or new companies don't always have marketing or PR money to compete with larger firms. According to AllPropertyManagement.com, 84% of property manager survey respondents reported that getting new business was their top challenge. Here are 5 tips property managers can follow to help with adding more properties when on a budget:
1. Use Word-of-Mouth Referrals
Your current clients might love the service you provide, but don't always know when your company is seeking new properties. Since investment property owners typically travel in the same circles as other property owners, it's important to let clients know you are looking to add other rentals to your management portfolio.
Set up a monthly email or newsletter along with client's financial statements that details current happenings with your business and includes information about the desire for new properties. Offer a bonus to current clients when they refer a new landlord who signs with your company.
2. Become Friends With Local Realtors
Find out which realtors deal with investment properties in your area and offer to buy them lunch while you discuss your property management business. Often, buyers are eager to purchase rentals but don't have the knowledge or time to manage tenants.
By making realtors aware of your services, it gives prospective buyers who might be on the fence an easy management option after becoming landlords.
3. Offer Move-Out or Clean-Up Services
As a property manager, you already clean and remodel to prepare for new tenants. Try expanding this service to homeowners who might need help getting a property cleaned up after a vacancy.
The most likely scenario applies when an elderly person has passed or gone into nursing home care. Relatives often live out of town or don't have time to deal with the property. By providing a service to pack up and clean houses that suddenly become vacant, you gain an opportunity to discuss rental of the property until the estate can be dealt with. The situation could easily lead to a long term rental management contract.
4. Look for Owners with Multiple Properties
Using local property tax records, search for owners or corporations who have multiple properties. Reach out to those property owners and offer your services. Odds are they may be looking to add property management or change services if their current company is not top notch.
5. Take Advantage of Craigslist
Make sure to list your company under real estate services in case property owners are seeking managers. Also keep track of current rentals that have been on the market for a while and contact owners who may need help finding tenants or those that might be unhappy with the performance of their current management company.
Through referrals, networking with realtors and other property owners, and paying attention to the local rental market, there are multiple ways property managers can add more properties on a budget. Even as your business grows and allows more money for advertising, you might find that these tips remain at the top of the how to list for adding new clients.
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Kim Parr is a landlord and successful small business owner who writes about developing multiple income streams and financial independence. To read more, visit Eyes on the Dollar.