Last month ARAMA invited Letts Rebuild to be a guest speaker on their infamous educational webinar. The topic was “how to protect and defend your letting pool” where I spoke about the techniques we use to try and ‘win back’ outside investors.
This webinar was in such high demand I thought I would put ‘pen to paper’ or ‘fingers to keyboard’ and write up an article on just that.
I wish I could proclaim that Letts Rebuild had created a magic potion or remedy that instantly wins over your outside investors back into your rental pool, unfortunately we have not. What I can do is pass on a few insider tips and tricks for you to implement into your daily/weekly/monthly routine.
Winning over an investor and building a relationship takes time and consistency. At Letts Rebuild we create what we call, a marketing schedule which pans out over a six-month period. In this schedule we have different strategies to target these investors, such as, phone calls, text messages, email, post and video marketing. The content within these different strategies can range from educational information through to monthly giveaways or offers. You may just find that some of these investors didn’t even know that you ran a property management business onsite. The thing we must remember is not everyone is familiar with the industry we know and love, so sometimes it takes a little bit of educating.
Some of the roadblocks that do come up, are when the investor is generally happy with the property manager they have in place, this is where patience comes in. The timeframe of a property manager in one company or job from my experience is never very long. Be sure to keep consistent with your marketing, WHEN not IF but WHEN these property managers leave the company or make a critical error, you want to be in the forefront of the investor’s mind. The other common obstacle is if the investor has a portfolio of properties and has them all looked after by an outside agent. In this case seeing as you the manager would obtain a full real estate licence, I would offer to look after them all for them, not only winning one investment but multiple.
Top tips to help win over your outside investors:
- Educate them on management rights and the benefits of YOU.
- Listen to what they are looking for in a property manager and what matters to them.
- Communicate with them regularly, always be at the forefront of their minds.
- Learn more about them on a personal level and be sure to show them how important their business is to you.
Side note: Did you know that the big agencies hire what they call a BDM (Business Development Manager) and their sole job Monday to Friday is to bring in rentals to the company’s portfolio. You managers need to make sure you are doing the same.