How To Kick Butt With Older Properties
How do you create your properties uniqueness? Apples and oranges are both fruits, but very unique in their own ways. Using these simple and easy tips can be the difference from being a successful older property to being an unsuccessful older property landlord.
Just the other day, I was listening to a colleague and friend named Jim, tell me a story that, quite frankly, I’ve heard over and over by many others.
The story leads down a path about how the newer and prettier properties in the area were kicking his butt.
He went on to complain about why his occupancy had slipped to 76% and that there was nothing he could do to compete against these newer properties.
Just standing their nodding my ahead while appearing to pay attention, I was thinking to myself; uh? The person I was speaking with was a very experienced real estate owner and manager in the area. How was it that he was having these kinds of problems?
Then I regained my composure to politely say in response to Jim, I am surprised to learn that your property is struggling. We continued to talk for a while with Jim asking for my help.
Are you having problems like Jim renting units and competing with the newer prettier looking ‘A’ properties?
Has your occupancy slipped to the point that it is starting to create cash problems?
Have you reached your wits end trying to figure out how to survive among all these newer properties?
If so, then you’re not alone. In fact, you are in very good company.
There are many struggling landlords, even experienced ones like Jim, with older properties in markets across this nation trying to find creative ways of renting units and keeping the property reasonably occupied.
The number of total renters has all but dried up. Low interest rates have pushed people into buying homes instead of renting apartments.
Also, these low rates have allowed builders to keep building new properties that offer many amenities with huge concession packages. Like Jim said, "how can our older properties compete with these newer properties?"
Simple….Stop being all things to all people!
There are many things newer properties can offer that you can’t, and conversely, there are many things an older property can offer that they can’t.
When you actually survey and ask residents of older properties why they chose to live at an older property versus a newer property, they will tell you the following:
- Better strategic location
- More character and lush landscaping
- Shorter commute to work
- Bigger floor plans
- More storage space
- Better sound proofing
- More liberal with pets
- More space for the money
- Easy access to public transportation
Less strict application requirements
If you actually take some time to think about all the advantages you have over newer properties, then the list I’ve started for you could probably double in size. As you can see, you definitely have the ability to compete with newer properties.
Now, how do you find the types of people that will chose an older property over a new property?
First, to find the types of people that will chose an older property requires doing some research. Take some time and do a demographic study of the types of people living both at your property and in the area.
- What types of jobs they have
- How much they make
- How old are they
- Where do they go for fun
- Do they have transportation, and so forth
As you go through your research, you will be able to clearly determine your target market. That is, a market of the people most likely to live at your property.
Next, create a marketing message directed at this target group. Your message should include an emotional and powerful unique selling proposition, USP, that includes the unique property characteristics mentioned above.
Finally, you must find the correct marketing medium. The marketing medium you will choose depends on your target market.
You will place your marketing in places where your target market will see your marketing message. Choose your marketing medium carefully so that your target market will see your powerful unique message.
This entire process allows you to market only to a smaller segment of the mass market so that you can be more successful and cost effective. You will no longer be all things to all people, but everything to a segment. You'll become a big fish in a small pond.
Stop being all things to all people!
With the right market, the right message and the right marketing medium you will have the newer properties worried that they cannot compete with you because now you will be dominating in your marketplace.
