If you attend any marketing seminar, workshop or webinar you will hear the same message - to define your target audience, create a niche. Focus on delivering your message to this group and you will have success.
In the competitive world of real estate, there is often an approach of taking what you can get, however this doesn’t mean the rules of marketing don’t apply.
When it comes to a rent roll, specialising and focusing on one area can actually pay off.
In our experience we have noticed carving out a niche in your area improves rent roll stability. Having a properly defined audience and customer base can also result in less churn by around 10 percent a year. This will increase the value of your rent roll in the long term.
Finding your niche
These are some of the factors to consider when it comes to deciding on your niche. These include:
Outer suburban agencies will do best to keep family homes on their rent rolls, while those in pricier areas may be better off marketing and catering to the luxury end of the market.
You may choose to become a seaside property specialist. If you are based near the city it could make sense to cater specifically to expats looking for easy living.
People seek to live in different areas during different stages of their lives. Take a look at what is already popular within your agency footprint and go from there.
You may find you are constantly receiving phone calls from people looking for a certain type of property - perhaps with a swimming pool or accepting of pets. If this is the case you can leverage this situation by specialising in this area.
Having two or more niches will expand your rent roll, so long as you are able to provide good quality service for each of them.
Some areas have more transient populations than others. Use this to your advantage and consider working specifically with tenants who are seeking short term leases. By moving people in and out quickly and reducing vacancy times your landlord clients will be happy to stay with you for the long term.
Your personal comfort zone
If working with retirement age investors suits you and you have a wealth of knowledge to impart - tailor your services to suit this demographic. If you prefer leasing to young tenants because they are potential future buyers, keep these people close and find ways to cater to their requirements.
The more you become an expert in a niche, the more people will refer your services to their friends and contacts. This will enable you to build a quality rent roll which causes less stress and becomes increasingly valuable over time.
BDH Solutions have been buying and selling rent rolls for over 30 years. Keep up with our latest listings here.