Let me throw a National Association of Realtors statistic at you—70% of all first time homebuyers rented before buying their first home. So, when you market to apartment complexes, it's like shooting fish in a barrel, right?
Well, not really! Because you can really screw it up and spend a ton of money, if you don't choose the “right” ones.
So, here are five mistakes that real estate and mortgage loan officers make—when marketing to first time homebuyers.
1) Not doing your research. The Internet is your friend and it's really easy to get detailed information about each and every apartment complex in your area. You can research:
· How much they charge for rent;
· How many units are in the complex;
· Different unit sizes/amenities;
· Directional maps;
· Special offers.
While you normally won't find every single complex on one website, you'll find a majority of them of them checking out several websites, such as www.ApartmentGuide.com, www.ForRent.com and www.Move.com.
2) Not choosing apartment complexes near your office. Find complexes within a 10 to 12 mile radius of your office because, while they will do most of their house searching on the Internet, they want a real live person (located nearby) who they can talk with to help them find a home and get a mortgage. Additionally, when people move, the average distance is about 12 miles from where they currently live.
3) Not knowing the numbers. First time buyers will pay about 25% more for a mortgage payment than what they would pay for rent. For example, if they are paying $800 in rent, they'll pay $1,000 for a mortgage payment (including taxes and insurance). So, when doing your research and choosing the best complexes, you'll need to determine the mortgage payment of starter homes in your area and then find complexes where the rent is 25% less.
4) Not checking for vacancy. While this is one is not easy to determine, it can be done. Visit the complex yourself and drive around between 8 to 9 pm. Check to see how many cars are in the parking lot. How many lights are on in the units; is there “stuff” on the patios and balconies?
Also, when mailing post cards or marketing materials, at least once a year, pay for 1st class postage and include your return address. Because if the unit is vacant, your mailing piece will be returned to you marked “vacant." This is a critical step because you'll be spending money and you'll be marketing to nobody.
5) Not being consistent. One or two mailings won't work. Create an eight to 10 month campaign, which includes post cards, with catchy headlines (When your lease is up, do you know where you're going to live?) with the same colors and branding each and every time.
Your apartment complex marketing calendar might include asking them to request a First Time Buyer White paper; offering a free credit report; and/or a picture of a home, town home or condo unit with a headline “You could own a home like this.” And don't forget Home Buying Seminar notices.
Oh, and one last tip—there's a website called www.ApartmentRatings.com. This is a site where renters can post their comments (good and bad) about the complex they are living in right now. You won't find every complex, but if you find a complex that people are unhappy with, you have a better chance of convincing them to buy a home instead.
Bottom line: Why buy address mailing lists and have apartment complex marketing as one of your business pillars? Because addresses never change, but the people who live there do, so you are constantly marketing to new people.
Karen Deis is the publisher of
