Would you agree that most people think buying an investment property and putting a tenant in is how Real Estate investing works? If you are like me, then you know there is a heck of a lot more to it than that.
Still, in speaking to investors who have been in the game a lot longer, I find they lack basic fundamentals of business and worse, follow what everyone else is doing when it comes to pricing, tenants, how they care for their properties etc.
They are positioning themselves … as a COMMODITY.
To their prospective customers, it makes no difference which property they choose.
That is NOT how you want to run your Real Estate business.
But, if you are willing to do what others will not in all areas of your real estate business, you will be successful. The trouble with most investors is they think of Real Estate as a passive income source – it is NOT passive, it’s a business.
So if you are running a business, what are you doing to stand out from your competition? Some investors tell me they ‘HAD’ to drop rent because property A down the street is asking lower. Well, maybe that investor is not as specific with whom they want to attract as tenants.
What if that property is a hell-hole inside?
What VALUE does the property and the team (landlord, property manager, handy-person) offer?
Does it have the same features?
When I look at ‘competing’ investment properties, I know exactly what to add to mine … and the main thing is VALUE.
- I ALWAYS stage the property (using Suite Design) to eliminate the guess work of how the space works.
- I ALWAYS upgrade my properties – investing a bit more to attract someone like me who would love the property.
- I NEVER negotiate on price – I will ADD another value item (maybe let them move in two weeks early no – charge)
People do not buy for price, they buy for value.
I know some will disagree with that, but think about it, if you have everyone asking you to drop your rent, the bottom line is your potential customer does not see the value in the property with relation to the rent you are asking.
So think of a way to add more value to your marketing – and when you choose your next property, have the result in mind – the tenant – does the property offer what your ideal tenant wants?
If you take away one thing from this it should be…
… adding instead of discounting is a powerful way to market.
Just think, while others are dropping their prices, YOU are ADDING to the deal. I can’t tell you how many cars I bought just by ‘convincing them’ to throw in free car mats, undercoating, a year of free oil changes etc…the value I perceived was worth it … AND they let ME think I was winning the negotiation.
Always look into expanding your business knowledge, look at more education, always read and finally hire someone to help you achieve your results – every successful business owner has someone like a coach or mentor in their corner.