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Owner cell procedure PPP Review

Promotion – Presentation – Price review Procedure

You can’t rent a secret so that old maxim still rings true, Maximum EFFECTIVE promotion= Maximum price. Over 75% of our enquiry comes off the internet so it is vital to ensure the property is professionally promoted on line. The following rules have been developed by industry professionals over 20 years and when used correctly will ensure we maximise every properties rental price

Is promotion Correct

                This MUST be correct BEFORE any price adjustments are made

Is Presentation Correct

Ensure correct presentation & wherever this is not 100% possible / inform the owner, then adjust price down to match presentation where necessary

Is Price Correct

Inform the owner (Provide evidence) and quickly adjust price taking into account evidence, presentation and High Low demand period.

Conduct this review Every 7 days whilst the property is on the market

  1. 1.       Promotion

Physically check the property is actually appearing on RE.com.& Domain

Is the property listed on Uni Website?

Ensure a For rent Sign Board is erected where possible.

Is the property a feature listing?  Offer the owner a feature listing.

If no,  remove and refresh the property via my rennet.

 (Minimum 45 minutes from removal to reset)

This helps ensure the property stays towards the top of the listings pages

Our Standard Advertising package includes Professional copy writing, Standard listing placements on 10+ websites including Realestate.com. Domain.com, Home Hound, thehomepage.com.au , local websites (JCU)  and feature property status on Coral Sea Property website coralseaproperty.com.au

It also includes Signboard installation and removal if required.

Extra promotion is available with a real estate.com feature property listing. This ensures the property appears at the top of the listings for a 30 day period.

 

Offer the owner a feature property upgrade ($95)

By making the property a feature property during this period you may be able to generate a higher level of interest helping to further maximise the rent return,

 

This is especially important if the property is vacant during a low demand period. By using a feature to generate more interest it may help reduce the ongoing loss from lower rental achieved until we can get it back into a high demand period. This small investment could save your owner more than $1000.

SO ASK THE QUESTION!

 

Ad preview (First page)

 

We only get one chance to attract the prospects eye and less than 3 seconds to do it.

The ONLY goal of the preview, Money shot photo, Headline and excerpt is to get the prospect to click on the ad.

 

IT MUST HAVE IMMEDIATE IMPACT.

(Don’t just tell me about a cleavage, Show it to me!)

 

It MUST attract the prospects interest, open a loop and make them curious to find out more.

Lead with your best shot, don’t save it until they are in, you might miss them!

It MUST make sense. Any questions posed by the Photo, headline and excerpt MUST be answered in the ad once the prospect clicks.

The excerpt, photo and headline MUST form part of the same story.

Where possible it should feature the #1 Benefit or selling point for living in the property.

IE The Number 1 reason I would live in this property is because…….

 

 

Full online display ad.

This IS NOT designed to rent the property for you!!  The only goal of the display is to generate the maximum number of calls resulting in the maximum possible number of inspections. By pitching the property and conducting professional, competitive inspections we create excitement and maximise the price the property is rented at.

Ad Rules

ü  Lead photo must be “Money “ shot         * detail back page

ü  Pro Photos _  These should ALL be awesome. Absolutely nothing that allows the prospect to exclude the property from their list. If it isn’t perfect – get it edited or get rid of it!!

ü  Better no photo at all than a bad photo.

ü  Photos must tell a story and walk you through the property in a logical order and if possible take you on a journey. Include 1 or 2 Lifestyle photos that are relevant to the property/area/ or headline and “make sense” These should help to put the prospect “In the picture” and help them build a First mental image of how life will be better if I live in this property.

Eg Cheer on the crocs (Photo of crocs) Live close to Riverway (Photo of Riverway pool or fireworks.

We have a large store of lifestyle photos; make use of them to help “Put the prospect in the picture”

ü  Photos and Headline and first paragraph must combine to tell a story. FMI (First mental image) paints a picture and puts the reader in the story. (Relax around the pool. Cheer on the crocs, Steaks on the Barby, Beers on the back deck.. etc)

ü  The ad must create a sense of urgency, wow I better hurry; I don’t want to miss this one.

 

ü  Ensure the configuration details correct (Ie 3 bed 2 bath 2 garage pool)

ü  Are MAJOR selling points and benefits listed in the first 2 paragraphs (Maximum 3)

ü  Are all features listed in the ad ie Pool/ aircon, garages, 2nd living area, deck, security screens, fully fenced huge yard. (Ok to use points here)

ü  Are all features “sold” or enhanced

  • Ie            Pool                       =             resort style pool
  •                 Kitchen                 =            Chefs kitchen
  •                 Dbl Garage          =             Room for Both cars and a bike
  •                 Shed                      =             room for the fishing boat

 

ü  Does the advertisement make you want to call the agency to find out more about the property?

 

 

  1. 2.       Presentation

External appearance

ü  Lawns Gardens – Well watered, gardens weeded, lawns mowed “A grade”

ü  All rubbish removed

ü  For rent sign erected (Houses and flats Compulsory, Units where possible)

Internal appearance

ü  Cleanliness  – is it “A grade” (Includes Smell)

ü  Carpet / floor coverings curtains and paint – “A grade”

ü  Maintenance – is anything required

Prospects can be easily turned off by the smallest things, a broken light switch, a bulb not working a torn flyscreen or even an unweeded garden bed.  It sends an unconscious message they all may not be right with the property. Report ALL maintenance for action immediately and have a cloth and some cleaner in your car to touch up simple things as you go.

Feedback from tenant cell inspections.

ü  Have we been booking “Competitive” inspections IE More than one person per inspection if possible?

ü  Have we been “pitching” the property,               

  •                 Initial enquiry?
  •                 Booking the appointment?
  •                 At The inspection

 

ü  Why have we not rented this property?? What needs to be done in order to get this property rented ASAP?

Would you rent this property?  If Not, why not??

If there is anything that would prevent you from renting this property

TAKE ACTION  IMMEDIATELY on all items listed above and inform the owner!

Recommendations to owner

All maintenance Including cleaning requirements, carpet/ paint recommendations etc  must be emailed to both Maintenance cell and owner cell for action.

Be Honest EVERY time.

We make a commitment when we accept the management of every owners property that we will act in their best interests. This includes conveying bad news immediately.

If there is a reason the property has not rented tell the owner. They may not be overjoyed with the news but by keeping them informed you can help them make the changes necessary to get the property rented quickly.

By avoiding this conversation you are contributing to more lost rent by our owner. Eat your vegetables, convey all bad news immediately. Remember your owner is on the same team and wants the property to be rented even more than you, as their property “Doctor” it is your job to let them know what needs to be done to get the best result.

 

 

Price

How to determine our Actual Listing Price range

1              Evidence – Check Competing properties in the area –  RE.com and Domain (Send link to owner)

2              What is average price range of competing advertised properties?

(Target range top)

 

3              What are the Average Price of Similar properties currently rented by our agency.

                (This provides an ACTUAL guide rather than inflated advertised prices)

                (Target range bottom)

 

4              High or Low demand period

Target price range from evidence….Av 2 – top$ target    Av 3 Bottom$ target

High Demand period formula

Rental Price = 95% Evidence Target Range top less adjustment for any presentation/ maintenance.

Low demand period formula

Rental Price = 95% Evidence Target Range bottom – adjustment for any presentation/ maintenance.

 

Maximise the income – Get the price right (95% of the competitors)

The majority of agents will overpromise on rentals in order to secure an owners listing. This almost always results in long vacancies and massive losses due to overpricing. The market is not stupid and will compare properties to ensure they are getting value for money, these overpriced properties take much longer to rent and often have a much higher “Churn“ rate as tenants quickly move on when they realise they have paid too much again resulting in even greater relet costs to the owner from advertising reletting fees and more lost rent through vacancies.

By setting the price at 95% of the higher advertised competitors you will generate immediate interest. By ensuring the property is well priced presented and promoted you will generate immediate applications almost always at asking price, saving the owner money from lost rent.

By having the property priced competitively you will ensure minimum churn and maximum retention saving the owner on reletting costs. By having the property priced competitively you will have access to the best tenants and avoid those “Questionable and Dodgy” tenants who are prepared to pay over market price to get any property in the hope you overlook their history.

Ensure the property is priced competitively from day 1- maximise the owners return.

DO NOT “TEST” the water to see if you can get above market rent, it will cost your owner money, create drama and it will end in tears! Only stupid people pay over market and stupid people ALWAYS make bad tenants

 

Adjust Quickly.

You will not always get it right first time! If you are not generating activity and you have presentation and promotion correct you have got it wrong!! The market is simple and predictable if you are well presented, well promoted and well priced our system ensures the property WILL RENT.

The market can move quickly, over 200 properties can hit the market in an average week. If 15 of them are competing with your property and they are priced cheaper the market will abandon you. DO NOT ignore silence, it is a warning bell, take action immediately, recheck presentation and promotion and then immediately adjust your price if necessary.

A sense of urgency here will save your owner Thousands of dollars. Every week vacant is $400-$500 torn straight out of your owner’s pocket. DO NOT stand idle and watch this happen, take action now!!!

 

 

Warning – Leases that end during low demand periods COST OWNERS MONEY!!!

(Up to $2000+ per year in lost rent through lower demand.

 

Our first priority for ALL properties that come vacant during low demand periods MUST be to move the lease back into a high demand (June July/ Dec Jan Feb period) This will maximise the owners return in turn maximising our revenue.

 

http://www.coralseaproperty.com.au/how-to-make-an-extra-1500-a-year-from-your-townsville-rental-property#  This article will explain this to owners.

Demand is lower so you MUST be extremely competitive with your pricing to find a tenant however unless there are extraordinary reasons for doing so, DO NOT accept any lease during this period that does not move the property in to a high demand period. To do so will only prolong the owner’s loss year after year

Offer the owner a feature property upgrade ($95)

By making the property a feature property during this period you may be able to generate a highr level of interest helping to maximise the rent return, thus reducing the ongoing loss from lower rental achieved until we can get it back into a high demand period. This small investment could save your owner more than $1000.

SO ASK THE QUESTION!

 

Finally in summary

Is promotion Correct

This MUST be correct BEFORE any price adjustments are made

Is Presentation Correct

Correct presentation where possible / inform the owner, then adjust price down to match presentation where necessary

Is Price Correct

Inform the owner (Provide evidence) and quickly adjust price taking into account evidence, presentation and High Low demand period.