Warren Buffett once said, "only when the tide goes out do you see who is swimming naked."
And given the current climate, we're all a little exposed at the moment.
A recent report from Urbanation showed that while the 2020 rental market started out the year strong, there were early signs of a slowdown in rental price increases.
"As demand fell faster than supply in the second half of March, rents experienced a slight decline," said the report. "The average monthly rent in the post-COVID-19 period decreased 0.7 per cent year-over-year."
So, how can property owners and marketers navigate this time to stay competitive, maximize rent rates, and attract high value prospects?
Betting on Marketing When Oversupply Hits
If you haven't already, now is the time to allocate a budget to improve your marketing. As prospects have more options to choose from, your marketing and advertising will be the key differentiator for filling vacancies right now and maximizing the value of your rentals.
Here are 4 marketing strategies you can deploy to get the most out of your marketing spend:
1) Upgrading your property website
Just as storefronts draw street traffic into a retail store, your website is the key to engaging online traffic, and setting your property apart from the rest. By investing in a high quality website that's easy to navigate, includes suite photos/details, virtual tour content, and the ability to book a tour, you are one step closer to converting high value prospects.
"We absolutely love the Avenue Living website redesign! The content of the site is well organized and easy to navigate through; it all flows so seamlessly. We've also taken the redesign as an opportunity to incorporate both floor plans and virtual tours of our suites on the site as well. It's exactly the fresh new look we needed and it's clear we're now providing a better user experience for our prospects and residents." - Avenue Living
See our theme gallery to get a premium looking website up and running quickly.
2) Unique branding and naming
If you're in the process of leasing up a building, great branding is more important than ever when the market is in oversupply. By creating a unique brand image that stands out from the rest, you are more likely to attract high value prospects and maximize your rent rates as a well coordinated lease up brand builds greater property demand.
Check out this example we completed for La Vie to see how great branding can make all the difference:
If you're looking for creative services to help lease-up your property, head over to our lease-ups page for more information.
3) Featuring your ads on ILS'
The more traffic you can direct to your rentals, the more competitive you can be with your rent rates. As leads come pouring in, you have a better opportunity to set the rate you want versus a rental with little interest. To get more eyes on your ads, it's important to consider advertising on a high traffic ILS that provides an ample source of quality leads, based on your needs right now.
In addition, consider using promoted or featured ads, and including virtual tours – on the ILS' that support them – to help you stand out. As more and more rentals flood the market, highlighted listings with virtual tours will be a competitive differentiator and convert more leads for your units. If you're ready to start leasing to high quality prospects, our listing site network can help you reach millions of new leads.
4) Thoughtful promotions and incentives
One way to peak your prospects' interests and create more demand for your rentals is through incentives and promotions. Right now property owners and marketers are looking to drive more traffic and convert more leads with promotions such as discounts on first months rent. In fact, a recent survey by RentBoard revealed that the majority of renters are specifically looking for deals right now. So, if you're hesitant to offer incentives, just think: One great promotion today can position your property for future success.
Note: Remember to update your ad copy and your website content to ensure your promotions are front and center. (Yes, we can help you with that ?.)
At the end of the day, by investing in marketing and advertising now, you have an opportunity to create a solid foundation for your rentals to stay ultra competitive amidst oversupply, and create a thriving community for the long-term.