If you are a landlord or planning to be one in the near future, the most important thing to grow and sustain your rental business is to know about your prospective tenants as much as possible. Smart landlords and property managers create ‘tenant personas’ and make their properties suitable to their prospective tenants.
Tenants can be categorized into many categories. Some of them include millennials, retirees, couples, professionals, empty nesters, and students. When you will manage a property, you should know tenants from which one of these categories would like to live in it. It’s important because a property may be suitable to a particular type of tenants only. For example, if a property is situated near a popular university, has several smaller units and is affordable in terms of rent amount, it can be a great choice for students.
If you know your tenant type, it can have a great deal of impact on your marketing strategy when filling vacancies. Let’s discuss briefly some great advantages of knowing your tenant type:
Helps your launch an effective marketing campaign
If you know couples who are raising kids will be most interested in your property, then you can tweak your marketing strategy accordingly. You can target newspapers and magazines, websites and other online and print platforms which are used by this type of tenants only. It will increase the effectiveness of your marketing campaign to a great extent. You will target a particular segment of tenants, instead of targeting general crowd. It will make your marketing campaign focused. It will also reduce the amount of efforts and money you have to spend on advertising the property.
You will know where to add value
If your prospective tenants are student, you will know what type of features they would like the most. In case of students, these features could be free wi-fi, additional space for stories books, study table etc. Adding these features will make your property more desirable. It will help you fill vacancies quickly.
It will make the management smoother
A particular type of tenants may have particular kinds of problems. If you know them in advance, you will be able to develop an effective property management system that helps you deal with these issues efficiently.
For example, you will avoid tenant mix in a multiunit property in most cases. It’s common sense that you should not put retirees and students together. This type of tenant mix may create serious management issues because retirees and students have completely different lifestyles.