Rental properties refer to income generating real estate properties, wherein the property owner receives payment from tenants or people who are using or occupying the space.
Some examples are apartments, dormitories, and condominiums, including single-family residences. Rental properties make for a good investment as these promise high revenues. That’s why many people become rich investing in rental properties. But, how do successful real estate investors manage their rental properties and attain success and wealth?
In this article, you’ll learn how to become rich from investing in rental properties.
Take Advantage Of Digital Marketing
Embracing digital technology equates to good money, and many of today’s richest people in the world have realized and achieved success by venturing into digital businesses. As a real estate investor, you can also attain success by embracing digital marketing.
Digital marketing refers to online marketing efforts, including the use of software, applications, and other digital devices to promote products and services. It encompasses search engine optimization, social media marketing, email marketing, and search engine marketing, among others.
With these digital marketing strategies, you’ll reach more potential tenants and make them aware that your rental properties exist. Here’s how:
- By creating a well-designed website, you can showcase your rental properties through your “About Us” page and landing page.
- With local search engine optimization (SEO), you can target your specific audience by geotagging (adding geographical identification data to media, like SMS messages, images, and videos) or adding relevant keywords, which include your rental properties’ geographic location.
- Use social media marketing to broadcast how your real estate rental properties excel by posting behind-the-scenes photos, videos, and client testimonials.
Use CRM Software
You’ll be able to understand and improve your business sales better with customer relationship management. CRM software is a helpful tool that can help you manage contacts, leads, and sales opportunities while moving through the sales process.
CRM helps real estate investors manage their real estate sales pipeline, capturing leads and earning repeat customers and referrals. It helps you deliver your message to your intended audience at the right time.
For instance, the Airbnb business model relies on CRM software, wherein whenever a customer visits the website of Airbnb and completes an inquiry, the data gets stored in the CRM system. Also, whenever a room is booked, the information is captured and stored in the CRM and made available to authorized employees and departments.
Here are some ways a CRM can improve your real estate business performance:
- It’ll help you organize the overall sales process more efficiently by managing moving parts that your sales representatives handle daily.
- Keep track of leads and deals to ensure that opportunities are followed up, and nothing gets lost.
- Identify leads who are most likely to become buying customers using lead nurturing and lead and deal scoring tools.
- Automatically generate sales analytics reports to help you understand your current sales performance. It’ll also help you identify areas of improvement.
- CRM can help you work cohesively with your team members using a real-time sales dashboard. It’s done to drive well-informed and successful sales meetings.
- CRM can help you optimize your sales plan execution and accurately forecast your rental property revenue.
Track Sales Velocity
Sales velocity measures the speed at which your real estate business is making money. Are your new tenants providing value in a certain period? Are prospects moving through your sales pipeline in a timely manner? While property owners can get a tax deduction from rental properties, including depreciation and mortgage interest, they can’t get rich with tax deductions alone.
By tracking your sales velocity through analytics, you’ll be able to monitor your sales better to grow and keep your real estate business. If you understand sales velocity, you can forecast your projected income accurately and optimize your business process for a higher conversion rate and faster transactions.
Here are some ways to boost sales velocity:
- Improve Your Listing: Rental properties should be listed accurately. Make sure that potential tenants actually experience what they see on the photos of your listing to avoid frustration and increased referrals.
- Improve Conversion Rates: Find, target, and nurture sales-ready leads. Take time to analyze your sales pipeline for any leaks so you can patch them right away.
- Optimize Average Deal Size: Improve your sales velocity by striking a perfect balance between low-value and high-value opportunities. By doing so, your real estate reps can manage their time more effectively. Increase deal values by implementing a combination of strategic promos or discounts, cross-selling, and tiered offerings.
Generating promising income and becoming rich with rental properties is not impossible so long as you understand the things you need to do. You can take advantage of digital technology to market your business. With a reliable CRM system, you can track all customers, deals, leads, and processes using CRM, automating the stages of your real estate business process. Lastly, tracking your sales velocity is a must to avoid guesswork and ensure that your real estate business is heading to the right direction.