What Happens During The Marketing Cycle

How Investors Can Use This Time To Their Advantage

You may have already heard about the vacancy period, or the time a property is empty after a tenant moves out. The marketing cycle is a part of that period, beginning when the unit is ready to be marketed and leased. If marketed correctly, a unit is only part of the marketing cycle for a short time. Parc Management will explore how the most successful properties are marketed, and how your property can prepare for its next tenant in the meantime. 

Preparation and Final Work Items

Some marketing preparation work may already be completed by the time a property reaches the marketing cycle, such as drafting a new listing or preparing updated photographs. If not all the marketing preparation was completed, owners can use the marketing cycle to finish what was missed. Acting early is almost always preferable when it comes to marketing, as it means less time vacant and more time actively earning.

“The marketing cycle also gives owners an opportunity to examine their work”

We discussed the importance of considering the renter’s state of mind in our When Rehabilitations Add Value post; understanding what matters to potential tenants helps investors market those features better. The marketing cycle also gives owners an opportunity to examine their work before listing the unit. Were all the needed repairs completed? Is the paint you selected still suitable? During the rush of move-out or renovations small details can be easily missed, such as squeaky hinges or textured (popcorn-style) ceilings. Paying attention to these low-cost, minimal-effort items and implementing easy changes like installing three-prong outlets in every room can make a unit significantly more appealing.

Pricing

Most investors have an idea of their ideal rent rate; the marketing cycle is where that idea becomes a goal. Owners can partner with a property management firm for up-to-date research on competition, or search themselves to identify comparable rental properties. It is important to inspect the look and amenities of competing properties rather than simply checking local Zestimates. In the Metro Detroit area, unit rent rates can change from street to street. For example, a two-bedroom apartment in Royal Oak may not rent for the same price as a comparably sized home two miles away.

Potential residents know when a price is too high, so owners need to be aware of what their property may lack, what their property has, and the value of the space to tenants relative to other units in the area. We advise initially pricing units slightly higher than their estimate; however, rent rates should be lowered quickly if the unit does not receive between one and three inquiries a day. Depending on the season and other local factors, investors may have to consider pricing below their desired rate for a short period. It is much better to have an occupied unit earning slightly less than planned than a vacant unit.

Listing

After all that work, the home is ready for listing. Deciding where to market the home, which images to include, and what description to write can determine how quickly a property moves from the marketing cycle to a tenant move-in.

Writing a good listing description is essential. Owners should never write listings in all caps or use artificial intelligence to generate a listing. Landlords also need to take care when including details of their property; there is a difference between description and exaggeration that some owners forget. If an investor elects to market their property alone, Parc recommends that they first familiarize themselves with their local Fair Housing laws; these laws may forbid certain descriptors like “for professionals” or “must have documented employment income.” A skilled property manager will be aware of their local laws and have experience writing listings for maximum visibility.

Owners should use specialists for an advantage. While it is possible for landlords to complete some marketing activities themselves, leveraging experts can yield better results in less time. We advise owners to build a network of:

• An interior designer to help create virtual staging

• Professional photographers to capture a property’s best qualities

• Local realtors to post on the Multiple Listing Service (MLS) and coordinate showings

• Contacts at Michigan State Housing Development Authority (MSHDA) to provide a list of possible tenants

Owners should not market their units on Facebook Marketplace or Craigslist; however, they should check these sites to ensure that their properties aren’t copied and used by scammers. Parc Management suggests using the Zillow family of companies to market a property effectively. Estimates suggest that these online platforms are responsible for more than 70% rental inquiries; 90% of the inquiries Parc Management receives originate from the Zillow network. Zillow allows users to create a profile after which they can personally post a property, use a property management software, or hire an agent to post the unit on Zillow’s Multiple Listing Service for broad reach over platforms.

Seeing The Results

Once the home listing is live, owners should expect inquiries, text messages, and phone calls about the property. Many of these inquiries can be easily answered by referencing the listing description, but owners should take full advantage of the opportunity for conversation with a potential resident. Every interaction is an opportunity for conversion if handled appropriately; landlords should answer inquiries while encouraging viewings and applications.

Owners should never ignore contact from a potential tenant

Some questions will require more consideration than others. Parc Management most often hears "can we paint?" from possible residents. We advise owners to be flexible with such inquiries. For example, we answer “can we paint?” with "if your application is approved, of course!” or “we can discuss something like that." When potential tenants apply, landlords should be open to making reasonable changes for an excellent lease. 

Application Consideration

When considering applicants, owners must adhere to their local Fair Housing laws. Everyone deserves the chance to live in a good home, even if they don't have a perfect credit score or spotless history. Applications should be considered with care, kindness, and strategy. It is also important to remember the “first come, first served” rule. While owners have some discretion when selecting tenants, there are some fair housing requirements that may mandate that the first applicant is the one selected.

If an investor has hired an agent or a property manager to make applicant selection easier, the parties should discuss the agent’s application process. Having this discussion early gives an excellent indication of the agent’s experience and properties. Parc Management uses a combination of financial and historical records paired with personal conversations to place the right tenant in the right space.

The marketing cycle is incredibly complex, so we will continue to provide more detail and guidance in future blog posts. The most important thing to learn from this post is to consider the tenant point of view. What are they looking for, where will they find your listing, how will they respond to your communication?

For expert insight into what tenants want, consider contacting our Parc Management team, and start finding your next residents.

Ready to market your home?