Property managers deal with a lot, these include tenant screening, marketing rental properties, collecting rents, managing residential and industrial properties, handling maintenance issues, and pursuing evictions. On top of all of this. They are saddled with the responsibility of figuring out ways to drum up business and increase revenue. As a property manager, you have to make informed decisions and devise leads generation strategies to grow your business.
What is lead generation in property management?
Lead generation is a process by which you sift through a pool of potential or prospective clients to arrive at the most qualified ones. It usually entails a multi-step process, and at each step of the lead generation process, the number of prospective clients gets smaller.
In this article, we will examine a number of effective lead generation strategies you can implement to attract more property owners and grow your property management business.
Customer Acquisition and Lifetime Customer Value
It’s important for you to understand an important principle before we delve into lead generation strategies for your property management business.
It is easy for you to scale your business given the cost for customer acquisition is lower than the lifetime customer value.
In simple math, let’s assume your average customer stays with your company for 4years and gets to pay $100/month, this means the average revenue that is generated from a property management contract amounts to $4,800 (12months x $100/month x 4yrs = $4,800)
Once you’ve determined the average revenue you generate from a client, the next thing to do is to calculate your profit for each client. For example, your profit margin per client is 70%, this leaves you with $3,360 of $4,800 in profit from the average client.
Customer Lifetime Value
Customer lifetime value would require you to have a significant budget to acquire a client.
Let’s do some math using the aforementioned figures. For example, if your average cost of acquiring a client is $500, you’ll make $2,860 i.e $3,360 – $500/client you acquire.
Basically, it is important to have a considerable budget to acquire clients for your property management business. With this in mind, let’s look at different lead generation strategies you can implement and grow your property management business.
Referrals from Clients
One of the best leads you can get is a referral from an existing client. If you want to increase the number of referrals you get from clients, offer an incentive for them to refer you to more clients. Be creative, you can offer a free month of management services for every client they refer you to and you successfully close.
Realtor Referral Program
Another great source of leads is a realtor referral program. This method is good for property managers who manage under 100 doors and are trying to get their numbers up. Building relationships with local realtors can be a great source for lead generation in property management. Like sales representatives, realtors are moved to take action when they are incentivized to do so. A smart way to go about it is to offer realtors a referral fee for every client they refer to you.
In some cases, a realtor referral program can work if you offer real estate sales. However, it’s important for you to sign a non-compete agreement that stipulates that in case of an eventual sale of the property, that sale will be given back to the realtor.
Build Good Relationships with Local Businesses
As a property manager, you should be an active member in your community or area of service. Building a good rapport with local businesses requires that you reach out to them. Real estate investors normally deal with a good number of local businesses regarding their investments. These businesses are landscapers, accountants, and repairmen. Like you would realtors, offer them a referral fee for every door they send your way.
Many businesses use LinkedIn for lead generation. It can be a goldmine for lead generation depending on how you use it. First, you need to have an active presence and create a powerful page for your target audience. LinkedIn can be considered the proverbial diamond in the rough when it comes to lead generation. You can use maximize the use of features like LinkedIn’s detailed search options and search for keywords like “Real Estate Investor”. If your keyword search results are good, the next step is to reach out to each prospective investor and tell them about your property management services.
Use Content Marketing
Content marketing is undeniably one of the most effective ways of generating leads for your property management business. Creating valuable content distinguishes you from other property managers and it establishes you as an authority in your field and area of service. A good way to churn out valuable content is through your property management website, and if you’re able to drive organic and paid traffic to your website it can go a long way in increasing lead generation for your business. There are different forms of content you can create and each content format should suit the different social media platforms from which you intend to generate leads. You can create videos, infographics, blog posts, or carry out surveys to identify the main pain points your target clients have.
When it comes to content creation consistency and promotion matter. Endeavor to consistently churn out valuable content for existing and prospective clients. More so, it is important to strategically promote the content you create. Promoting your content enables you to go beyond your audience and attract new eyeballs to your business.
Facebook has an immeasurable amount of data on its users. As a consumer, this is worrisome because the privacy policy doesn’t really guarantee the security of personal data. However, as a business owner, this is a powerful marketing channel for your property management business. You can devise a marketing strategy and use precise targeting techniques to run Facebook ads to property owners and real estate investors in your market area. Start running Facebook Ads to landlords and real estate investors in your local market.
Search engine optimization is another great form of content and a medium through which you can increase lead generation. Even though it requires a lot of work and can take a long time to come to fruition. In the long run, it can become the best source of leads for your property management business.
If you are a rookie in property management it’ll be best to focus your content creation efforts for lead generation elsewhere. But, if you’re an established property management company you invest time, effort, and resources in your SEO strategies.
Furthermore, Google Ads has a gamut of promotional and marketing options from which you can choose. A notable option you can use is to have ads about your property management services appear on search sites other than Google. These sites can deliver additional high-quality traffic to your property management business and help you generate leads.
Email Marketing
An oldie but a goodie! Email marketing is still as useful today as it was 20yrs ago. With email marketing, you can create and design emails for people who opt-in to your email list. This is a common and popular way of attracting leads to your business. Building an email list requires an effective lead magnet that’s captivating enough for prospective property owners to leave their names and email address.
Create a Website
When a potential lead stumbles on your content or ad the next thing they will do is to check out your website. Your website can live a good or bad first impression about your business. Many reasons can account for first impressions, a website with a good user experience can be determining factor in attracting a lead. By redesigning your website It is possible for your property management business to significantly increase its lead generation.
There are many lead generations strategies you can use to grow your property management business. With this knowledge, you can choose the strategies that meet your business needs and take action to increase your business growth.
If you have difficulties picking a strategy that meets your company’s business needs or you need help implementing these strategies, do not hesitate to reach out to us. With our experience and expertise, we are ready to assist and help you grow your property management business.