Author: GL.Araujo

The millennial generation’s entrance into the housing market has been delayed in comparison to prior generations. There are quite a few factors that have contributed to this phenomenon, but the most widely accepted are economic factors.

Nearly one third of the millennial generation live with their parents and have yet to form a household of their own. The lack of jobs, or well-paying jobs, is a major reason this generation has been unable to “leave the nest.”

With recent job growth in the U.S. and the economy improving, not to mention the older segment of the generation edging towards 40 years old, millennials are finally looking to get out on their own.

The millennial generation consist of persons born between 1981 and 1996. Every generation possess certain characteristics that define them, the millennials are no different. This generation has been talked about for years regarding their spending habits, reluctance to enter the workforce, and social habits heavily influenced by media and technology.

The millennial generation is now the largest living generation today and, according to the National Association of Realtors, they make up nearly a third of prospective home buyers, they are now a significant factor in the housing market and their impact must be considered.

There are a few characteristics inherent in this generation that must be considered in your real estate marketing plan targeting this demographic.

They are well informed

Millennials have access to more information in the palms of their hands than real estate experts could have dreamed of possessing a decade ago. It is guaranteed that all of them have a mobile device capable of researching a home they are interested before they even consider engaging in conversation with the realtor or property owner.

Effective internet and social media marketing are necessary to be successful with the ever-changing real estate market that will soon be overwhelmingly dominated by the millennials.

Millennials spend most of their free-time throughout the day browsing social media, something that has even become somewhat accepted in the workplace.

Employers are increasingly willing to allow their personnel to check social media alerts on their phones, as it takes mere seconds…in fact the “bosses” probably do it as well.

This allows for increased opportunities to reach this target audience as they consume information all day long. Creating an effective slogan or tagline will prove beneficial when marketing to this demographic.

They are more cautious  

Many in this generation were on the sidelines during the “great recession” and witnessed their parents, or their friend’s parents, lose their home to foreclosure. This generation is also saddled with significant debt from student loans.

They are entering the market but are incredibly cautious and will not rush into making the largest investments of their young lives. Even though they make up a large percentage of first time home buyers, they are very willing to rent to avoid the risks of home ownership.

They are more willing to assume “good debt”

As many in the baby-boomer generation set goals of being completely debt free, to include no mortgage, in retirement, millennials are more accepting of the fact that not all debt is bad.

There is a shifting perspective among financial advisors that carrying a mortgage is not a negative when setting long to term financial goals. As millennials are entering the housing market at a later age or looking to move up from their “starter home” in their late 30’s, the idea of having their “dream home” paid off by mid-career is unrealistic.

Offering information on good-debt vs. bad debt or steering them to reputable sources that can provide this advice, should be a component of your content marketing strategy.

They prefer less hassle

The millennials have a reputation for wanting to take the easiest route possible in life, some may disagree with this stereotype, but in the housing market it seems to be true. They are looking for a move in ready home, that needs little to no work, and they are willing to pay extra for it.

It is still possible to get a member of this demographic to be interested in a “fixer-upper”. If marketed correctly and if the potential of the property is realized through effective property descriptions, the home will be attractive to this group thanks in part to the popularity of the many home-improvement shows on cable TV. Programs on networks like HGTV make renovating a home look simple and exciting.

Location is key

Even though most millennials are looking for homes in the suburbs, the urban markets are often the preferred option. As is the case for all generations, the enticement of more affordable and spacious homes in the suburban locales is what has moved the middle class out of the crowded cities.

Most millennials would prefer to live closer to the urban areas that provide more entertainment options, an exciting nightlife, and are a closer to high paying employment. They may be willing to sacrifice square footage for a great location if ownership comes at an affordable price.

An effective real estate marketing strategy is key in reaching the millennial generation. If you can appeal to this growing segment of the real estate market you will be a step ahead of your competition.

Why you need a real estate marketing plan

A marketing plan is an essential document for any successful business, large or small. The size of your business, revenue generated, and resources dictate the funds available for marketing. Either way, you are operating on a budget and need a guide to efficiently utilize your limited resources.

For many real estate brokers and agents, the thought of developing a marketing plan can be overwhelming, especially in the digital age when the way consumers receive information is rapidly changing.

There are more avenues to market and spread information than ever before. The amount of information received every minute is mind-blowing. With so much information out there and increasing competition, how can anyone stand out?

Due to the hundreds of different platforms on social media, listing services, craigslist, traditional media, print advertising, e-mail campaigns, etc. it is easy to understand the fear you may have in spreading your resources thin by investing time in creating a real estate marketing plan.

An effective real estate marketing plan will be a blueprint for your real estate marketing goals and objectives. It will keep you focused on what you need to do to reach target audiences, expand the visibility of your brand (you), and increase conversions (more clients & sales).

How do you write a real estate marketing plan?

Below are some critical steps that will help you write your real estate marketing plan

1. Set your goals, a timeline, and identify metrics to measure success

The first thing you need to do is set obtainable goals for your real estate marketing efforts. Are you aiming to achieve higher rankings for your site in google (ie. appear on the first page of search results)? Increase your e-mail list? Increase attendance at open houses by a certain number? Expand the list of home buyers you are assisting in finding a home? Or, increase the number of properties you manage? The list can go on and on and is unique to everyone.

2. Determine your target audience

This may be one of the most critical parts of your plan, and it is widely overlooked. Many realtors assume this question answers itself and is obvious. Who is your audience? Anyone looking to buy or sell their home…it’s not that simple.

One major factor to consider is the people in the market today. It is a fact that millennials are finally entering the housing market in substantial numbers. Due, in part, to the unusually long bull market on Wall Street, there is increased confidence in the consumer economy.

For many in the industry, the millennial generation is a target audience previously untapped, you need to be aware of the way in which they receive information. How they make decisions on major purchases. How they conduct research. One important thing to remember is they usually do not rely on recommendations alone, they will follow up with a search on the internet and/or social media…trust me, I am one of them.

Not all of you will be focused on the millennials, which brings me to my next point. Your target audience is highly dependent on your location. If you are selling vacation property, you may be targeting couples in mid-career or retirement. If your location is popular for retirees, the baby-boomer generation will be your target.

All these differing demographics will possess a variety of income levels that must be considered. If you are selling higher end, more expensive homes, market to the demographic that can afford them. You do not want to waste time attracting persons who cannot or are not willing to pay for the homes you are selling.

At this point you will begin developing your brand, which may involve creating your real estate slogan, business name, and logo. You will want these very basic tools to be written towards your target audience. This is a time that you begin researching the methods your target audience receives information, what they value, and what their priorities are.

3. Begin your digital marketing campaign

The first and most essential task to be completed to establish your online presence is to create a professional looking website. There are many options to assist in creating one, my personal preference is Bluehost, they host this blog and make my life much simpler. They can assist in everything you need from domain registration to getting you up and going with an easy to use WordPress site.

WordPress for a real estate site is very user friendly and, if you are so inclined, hiring a freelancer for WordPress development is inexpensive and can be found on a variety of freelance platforms.

Your website will need a professional home page, a well written “about me” section and an easily navigable property listing segment. As ranking high in search results will be a priority, a content marketing strategy is also key. The foundation of the strategy is dependent on a regularly updated blog. The blog must contain well written, useful articles that can be posted on social media and shared. Improving search engine optimization is crucial to being found, and quality content is the basis of ranking high on search results.

You will also want to do a few key SEO techniques:

1. Keyword research
2. Use quality images and infographics
3. Create long, useful, and original content
4. Share your content on social media

Your site needs an attractive home page that includes high quality images. The projection of professionalism on your home page will be the basis for the way your potential clients will perceive your ability. You are in the business of first impressions, appearance is everything…consider your home page the “curb appeal” you refer to when advising home sellers.

Your property descriptions will need to be well written and compelling to potential buyers. This, along with quality photographs of the property, is incredibly important. If you are unsure in your ability to write effective property descriptions, you can hire a professional copywriter. Many will offer reduced rates for long term customers or go on retainer, which can save you money in the long run.

4. Explore traditional, printed collateral

Even though we are in the digital age and advertising is increasingly focused on the web/social media, there is tremendous value in printed media. Professional business cards are still necessary for all realtors. There are many options to printing professional business cards out there, I use Vista Print. It is very easy to create professional real estate business card at an affordable rate with this service. They ship very fast, mine arrived at my home within a week.

Industry magazines

Advertising in industry magazines is still very relevant in today’s market. Many people still turn to the real estate magazines found in the waiting areas of restaurants and diners in cities and towns across America, it is an easy way to reach a substantial amount of the local population.

Direct mail

Even though many marketing professionals shy away from it in most other industries today, direct mail is a great way to reach potential real estate clients. It is a great way to stand out and show your professionalism. It is no secret that direct mail is substantially more expensive than e-mail, but it will show potential customers that you are committed and have the resources to meet their demands.

Billboard advertising

This option can cost thousands of dollars per month, but if done right can reap huge benefits. Billboard advertising for a realtor is almost guaranteed to ensure your name and face is recognized in the local populace. It is even more effective for real estate marketing than television commercials as many people fast forward through or ignore local TV ads. It is way too expensive to produce a high-quality television commercial at the local level, at least a professional looking one. Remember, in your business appearance is everything.

5. Determine your budget

I save this portion for last, and I will explain. This is the one thing that will vary from person to person. You will need to make marketing a priority. If you develop a well thought out marketing plan, with clear and obtainable goals, you will know where you need to focus your marketing efforts.

Everyone needs to invest in a professional website and should be able to add useful content. Things diverge when targeting specific audiences, for example the younger demographic will require an aggressive social media campaign, while traditional advertising may be effective for older generations.

The differing methods of advertising will vary the amount needed to budget. Determine your goals and set aside as much money as possible for marketing. It is an investment in you, if done right will be the key to your success.

Either way, you are beginning the steps in organizing your marketing efforts. Hopefully I have helped you put a plan together, if not on paper, at least you are thinking about it.

Long gone are the days that a business can set up shop, provide good service or a quality product and expect the customers to keep on coming. All businesses, large or small, need a marketing plan to effectively promote their business.

For many start-ups and small businesses, the thought of writing a marketing plan on their own is intimidating. One does not need an advanced degree to write an effective marketing plan. In 6 simple steps, you can create a marketing plan that will put you ahead of the competition.

What is a marketing plan?

A marketing plan is a document that guides you and your business in everything that needs to be done to promote, or market your service or product. The length of the document is not important. Many small businesses can outline a marketing plan in a few pages. There is not a minimum number of pages required for the length of the plan as long as it delineates what needs to be done to accomplish goals, meet objectives and complete the necessary tasks.

An effective plan will span the course of a year and allow enough flexibility to adjust to a changing and fluid business environment.

Step 1: Understand and evaluate your business.

This first step is very simple for most business owners and is usually a very arduous task for marketing consultants as no one knows your business like you do. Chances are, you have had to evaluate and explain your business on numerous occasions during the creation of your business plan, in seeking funding and hiring employees.

A few things that must be considered are some of the company’s goals, the strengths, weaknesses. Consider challenges are posed and any significant obstacles that must be overcome soon. Are there any opportunities for growth? Any new markets to enter? If there are opportunities to launch a new product or offer a new service, this is the time to formulate that idea into an actionable plan.

Step 2: Determine your target audience or market.

Your target market is your intended customer. This portion of the marketing plan is crucial and is the basis for the remainder of your marketing initiatives. After all, getting the attention of your potential customers and creating conversions is the goal of your hard work.

In this portion, you will list demographics of your intended customers. Their age, education level, economic status, and gender. A successful marketing plan will also consider consumer behavior and sociological factors in determining their target audience. Evaluate the interests of the target audience. Do they gravitate towards certain social circles, interests, or hobbies?

The importance of asking these questions is to determine the usefulness of your product or service to your customer. It will also help in determining how your customer receives information.

An example would be an energy drink company. Their target audience may be 18-25-year-old males and they may want to become more appealing to college students. Their efforts will be focused on social media, placing a heavy emphasis on providing a product that will increase focus and energy during tedious lectures or late study sessions. This strategy will provide information to a demographic that is used to having massive amounts of information at their fingertips.

Step 3: Evaluate the competition

In the competitive market place most businesses operate in there is a very high probability that there are multiple businesses providing the same services or products as you. Markets are becoming increasingly crowded making effective and focused marketing very important. If you are the incredibly fortunate business owner that is the only one operating in your niche, you will not have to worry about outside business infringing on your market share, at least not yet. You will still need to continuously evaluate potential customers and will need a marketing plan to promote your developing brand.

For everyone facing stiff competition and a crowded consumer market, knowing details of the businesses vying for you customers will be valuable. By knowing exactly what the competition is offering, what their weaknesses are, their pricing, guarantees, customer service, and reputation will allow you to differentiate yourself from them. You will be able to inform customers what makes your business special, what you can offer that others can’t.

This is where you list the qualities that set you apart from the competition, it may be your affordability, your ability to provide personalized service, your location, being family owned, or any other factor that makes you unique and appealing to your target customers.

Step 4: Define your goals

This is where you will spell out what you wish to accomplish over the year for your company. Your goals can be based on sales, sales, revenue or merely increasing your brand awareness. Some examples of goals are doubling sales, increasing client list by 15%, carving out a larger market share, securing more revenue from investors. The business’ goal is dependent on your specific needs and requirements.

Goals can be on a small scale as well. It could be to double Instagram followers, obtain a few hundred You Tube subscribers, or to expand an email list to 500. Whatever your goal is, make sure it is attainable and demonstrative of the direction you intend your company to take.

Step 5: Outline your objectives and tasks that need to be completed to accomplish your goals.

This is where you will pull everything together. Where all your research will be put into a plan. Once your goals are established you need to set objectives or milestones that need to be met to accomplish the goal. Using the expanding you email list example, an objective could be to provide incentives that customers cannot refuse in exchange for their email address. It’s an objective that must be met to reach the goal and it is attainable.

The next step is to list the tasks that must be done to meet the objective. Task #1 would be to research and determine if a product is useful to the target audience and if it could be provided in a cost-effective manner. Task #2 would be to produce or purchase the product. If the product is an e-book, the next task would be to outsource or write the book.

There are other objectives that need to be met in order to accomplish the goal in the example above such as creating an easy to use form, having a site that is responsive and user friendly, the list could go on and each objective will require a different set of tasks.

Outlining the goals and a plan to accomplish them can be difficult and may require outside, expert assistance from an experienced and impartial marketing professional.

Step 6: Set your budget.

This may be the most difficult part of developing your marketing plan as it will require monetary expense in an area many new business owners are not comfortable operating in. The investment in your marketing initiatives is crucial and, if done right, will provide profits exponentially over the course of the plan. If ignored or done incorrectly it will doom even the highest quality product or service in a short amount of time.

You will need to determine how much each task lined out will cost over the next year and stick to that budget. During the budget process and in determining how much you can afford to devote to marketing, you may find yourself prioritizing your goals. If you have more than one goal, choosing to forgo ones that will have lesser impact on your bottom line will may become a necessity. By clearly outlining your goals, objectives and strategies, you will have a good understanding of the costs associated to reaching your marketing goals.

Get to work.

Now is the time to get to work. Whether your marketing plan will be exhaustive and hundreds of pages long or simple and only a few, you should have a better understanding of what needs to be done and how to put an effective plan together.

Content marketing has gained popularity and is widely accepted as a key component for driving sales and increasing conversions in the online market place. By increasing engagement with customers, or potential customers, content marketing has become integral to marketing strategies and brand development.

What is content Marketing?

Content marketing can best be defined as the use of high quality content to attract customers through online media. This form of marketing has increased in popularity over the last ten years, necessitating the need for a change in marketing strategies for companies both large and small.

Differing from traditional marketing, content marketing is dependent on the content being distributed, providing value to the reader in the form of relevant information for products or services, evoking emotion, and, most importantly, being delivered in a way that it is entertaining.

Blogging

Blogging is the foundation of content marketing and is the driving force behind many online businesses. Once viewed as a waste of time, it has become tremendously popular. There are hundreds of thousands of active blogs on the internet, everyone has one and almost all successful businesses operating online utilize blogs as a part in their marketing.

Blogs provide useful information to customers, free of charge. By giving customers information relevant to the product or service being offered, the business develops trust from the beginning. A blog article providing industry expertise has the potential to turn a person initially browsing the internet seeking information into a customer. Once trust is developed and the company is deemed a knowledgeable expert, the chance of conversion is drastically increased.

Constantly updating blogs with entertaining, high quality content will keep visitors returning as they seek engaging articles, providing information with practical usage.

eBooks

eBooks have revolutionized the literary industry over the past decade. Authors can easily publish their work with little to no upfront costs. Amazon and Kindle have been a game changer, no longer is there a need for a literary agent, expensive contracts, and huge investments to deliver a book to audiences.

eBooks have also proven very useful in content marketing as businesses can provide large amounts of useful information to customers focusing on a specific area of that business or industry. A book will further establish a person or business as an expert in the industry and provide a value by deepening trust between the individual and the company.

Businesses who offer a free eBook in exchange for contact information, usually an e-mail address, provide a relationship that allows for continued engagement in the form of newsletters and article distribution, ensuring the investment in content marketing reaches an audience of potential customers who have already shown in interest in the niche.

Videos

Videos are increasing in popularity as they have become easier to produce and upload. Most modern smart phones can turn even the technological novice into an amateur producer. Videos offer a nice change to content marketing and have proven to be highly effective in younger demographics.

Videos with graphics and animation will require an investment in either equipment or outsourcing to content creation companies or freelancers, but it is an investment work considering. 10 years ago, many did not appreciate the potential blogs had on marketing, videos could very well be the next underestimation.

Creating a contact (e-mail) list

Most of the content produced is done so with the goal of obtaining valuable information in the form of filling out a contact form. By obtaining an e-mail address and building the valuable list, you will ensure a relationship is started.

In offering content that is valuable in return for a relationship that will lead to conversions, both the potential customer and the business owner benefit from the exchange. In having more subscribers, larger e-mail lists, resulting in more leads, your brand will be shared by more individuals and to a wider audience.

Understanding the buying cycle and how content affects it

Content marketing is an important factor in the buying cycle and is becoming a vital component to marketing strategies in an era where the online marketplace is taking over. With the number of brick and mortar stores declining daily and consumers wanting information as fast as possible, useful content at the click of a button is a necessity.

The buying cycle:

1. Awareness- For businesses operating websites, this is the realization of a need for a specific product or service and the ability to be found through search engines, relying heavily on search engine optimization (SEO).
2. Consideration- Once a customer is aware of the product or service, he or she will evaluate the businesses ability to meet their need, often comparing to other sites.
3. Preference/Intent- Relies on the customer’s emotional intent and the perceived logical solution, leading to a conversion (purchase).
4. Purchase- The action of paying for the product or service.
5. Repurchase- Once the customer is satisfied with the service, hopefully he/she will return to purchase again.

The first three steps in the cycle referenced above are heavily dependent on a business’ website and are positively influenced through content marketing. Repurchasing, can be influenced through continued contact via e-mail or direct mail promoting special offers or new products, which is heavily influenced by continued content creations and new information being provided.

Effects on SEO

Search engine optimization (SEO) is a highly sought-after attribute when business request copywriters for their sites and is often a focal point in requests for written content in the content creation market place.

Even though there are many tasks that can be completed to increase SEO, content marketing can have the most significant impact on search results. Google’s algorithms aim to take users to the most relevant, highest quality information based on the search queries. Content is information and if you are not creating and sharing quality content, you will have zero chance of being found in searches.

When a website ranks in searches it is a result of keywords, the more content you have the more keywords there are present. Keyword research is important in content marketing and is a service a content writer can provide.

Getting backlinks to your site is another important factor in SEO. Backlinks are when other websites contain links to content on your site. The only way to get backlinks is to have high quality and useful content that is deemed valuable to others. If your content is deemed valuable in your niche or industry, there is a high probability it will be shared by other bloggers resulting in increased rankings in search results.

The last important contributor to increased SEO is constantly updated content. It is a fact that sites regularly publishing content rank higher on google search results. If your site stops producing content, Google will assume the information is out of date and will not send search results to the site to avoid providing users with irrelevant information.

Content marketing is not going away

With the world increasingly turning to the online market place, content marketing will continue to be a necessary piece to all successful marketing strategies. Everyone has some sort of on-line presence today and quality content is key to projecting a favorable image.

As technology continues to advance and the way we receive content constantly changing, it will be exciting to see the appetite for quality content evolve.

One thing is for certain, content marketing will continue to be a driving force to a successful business.

Whether you purchased your home to live in or as an investment, the time has come for you to put it on the rental market. You are preparing to become the owner of a rental property. You are probably asking yourself “what do I need to do to rent out my home?” This question may be a little scary as you navigate this process for the first time. You have some decisions to make, the below information will help you through the process.

Make necessary repairs, with cost in mind

Once the personal household items are removed, inspect the entire property. If you have previously lived in the home, you should already be aware of any necessary repairs that need to be made.

All appliances that will be included in the rental should be in working order, everything should be working properly in the home, no leaks, air conditioning/heating should be functioning, door and cabinet hardware should be in good working order, etc.

If you have major repairs that need to be done, contact a licensed contractor if you are not 100% confident in your handyman skills. You will save money having it done by a professional the first time as opposed to purchasing tools and materials plus having to call in a pro to finish the project and/or fix your mistakes.

Get a couple of estimates, even if you “know a guy,” you will be surprised at the amount of money you can save. You may be tempted to use an unlicensed handyman, but you will find that a licensed and bonded contractor will often have comparable prices with the guy doing the work on the side. If you choose an unlicensed contractor you will have very little recourse if the work is not what is promised, potentially costing you way more money in the long run.

Work on curb appeal

Curb appeal is the appearance of your home when someone drives by or initially sees it. Whether an interested tenant views your home from a real estate website, a realtor, or just by passing by and seeing your sign, the first impression is probably the most important. If they are not impressed by the exterior, you will not even get them in the door to see all your home has to offer.

Make sure the lawn is mowed, there are no weeds, the trees and bushes are trimmed, and the exterior is clean.

Most of this work can be done very cheaply on your own. Most gardening jobs can be done over the weekend. If shrubbery is dead or tacky looking you can easily pull them out and replace very cheaply with a variety of plants found at your local hardware store. The professionals in the gardening/outdoor department should be able to advise you on plants that do well in your specific location.

Don’t be afraid to seed and/or apply fertilizer to a lawn that has seen better days. The prospective tenant will be pleased to see that improvements and maintenance is being made.

Paint the exterior, if needed. You can do this on your own easily and at an affordable price. It is recommended that if you need to paint the entire house, try not to change the color if possible. You will know if the color needs to be changed. If the color is outdated, extremely bright, does not fit with the style of the home or the neighborhood, you may need to change the color. Just be advised, the larger the job the more money it will cost.

A licensed tradesman may be your best option for painting if you do not have the skill, tools or time to complete the project. Otherwise, there are many options to purchase quality paint products at an affordable rate.

Also, ensure that the back yard is clean and decluttered. Don’t break the bank on putting in an impressive garden in the back, you will not reap the rewards from the investment. Make sure any trash is removed, especially dilapidated swing sets or children’s play houses. If the trees are trimmed and the lawn is in good condition, most tenants will be satisfied.

Cosmetic improvements on the interior

There are many factors that come into play regarding when to paint the interior. The durability of your paint is dependent on the quality and whether a flat paint that was used.

As a rule, if it looks dirty or worn out, you need to repaint. Painting the interior of your house is a job most people will choose to do on their own.

Choose neutral, lighter colors when painting. If you use bright colors you may be constricting your pool of tenants as their furniture or decorations may not match with the colors you have chosen.

You should use a higher quality paint and I suggest using egg-shell on the walls for the living areas and the bedrooms. Use semi-Gloss in the bathrooms, doors and base boards.

If your cabinets need refreshing you have a few options. You can hire a skilled contractor, try sanding and re-staining yourself, or do my next suggestion.

A few years ago, I was remodeling one of my own rentals when I came across Rustoleum Cabinet Transformations. This all in one kit was incredibly easy to use. Everything you need is included and you have plenty of colors and styles to choose from. I was able to update the cabinets in the kitchen in one weekend, a majority of the time spent is waiting for the materials to dry.

I also used the Rustoleam Countertop Transformations to update an outdated Formica counter-top. I was ready to dish out a large amount of money when I decided to give this product a try. The decision paid off and the countertop still looks great three years later. On this one, I would suggest using black as it is very easy to repair any deep nicks and scratches.

Clean, clean, clean

Once all the repairs are made and your projects are complete, deep clean the entire house. Don’t miss a spot. Nothing will turn a prospective tenant around faster than a dirty home. Make sure the kitchen and restrooms are spotless and the home smells fresh. If animals were in the home, ensure you have cleaned everything to eliminate or minimize the odor.

Clean the walls. I am amazed at how much effort people will spend preparing a home but ignore cleaning the walls. Cleaning the wall will get rid of a lot of the lingering odors and make any walls not painted look 100% better.

Prepare the lease and list

Now that the home is looking good, you need to decide whether or not you will hire a property manager. A property manager will list the home, show the property, prepare the lease, and handle all monetary transactions. If eviction becomes necessary, they will take care of that as well. A property manager can save you time and frustration, but you will pay for it. Most property management companies can take up to 40% of the initial months’ rent plus 8-10% of the monthly rent thereafter.

You will save money listing the property and managing on your own but you will have to do all the work, such as list, show, prepare the lease, determine the price, review the application, screen the tenant and collect the rent every month.

A property manager will compare your home to others in the area and suggest a listing price. You can do this on your own and Zillow.com is a resource I have used in the past to set the rental price of homes, as many of the prospective tenants will utilize this resource as well.

There are pros and cons to using a property manager. Some of my properties are managed by a realtor and some are not, the negatives and positives are not universal and vary from market to market. This decision is up to you.

Either way, you are now the owner of a rental property. Protect your investment and good luck!