Advertising Your Rental Vacancy
Advertising Your Rental Vacancy
Hello? – Any applicants out there? If you’re not getting applications, do potential renters even know you have a vacancy? Are you missing out on rental income because your advertising doesn’t reach your target market? Tenant selection will be a moot point if you do not have applicants to screen and, if you get only one or two applicants, your chances of getting a good tenant are significantly reduced. Your goal is to attract as many rental prospects as you can, sell them on the benefits of your community, and encourage them to complete a rental application for consideration as your next tenant.
Advertising helps you do that. Through advertising you can get the word out to as many people in as many ways possible that you are open for business and welcome the opportunity to be of service.
Most likely your advertising dollars are in short supply and you need the most bang for the buck. Knowing how to advertise and where to advertise is crucial to staying within your advertising budget. Where do you start?
What Works?
What works best often depends on the type of property, location, competition, local market conditions, and even seasons of the year. Most landlords find that it takes a combination of advertising methods to produce an adequate pool of qualified applicants.
Although there are many different approaches to advertising rental properties, a broad approach is the most commonly used.
A broad approach blankets the potential market with information made available to all parties, whether suspects, prospects, or applicants, whether interested or not, whether qualified or not. Newspaper classified ads are good examples of the broad approach to advertising. Using a metropolitan newspaper with a large circulation reaches a great number of readers (newsstand, home delivery, and online) but it is difficult to determine how many of those readers are actively looking for a rental home or searching during the exact period of time that your classified ad is accessible. A disadvantage of classified advertising in major metropolitan newspapers is that it may be expensive.
You may decide that a more defined advertising approach is appropriate for your property and target market. Word of mouth advertising and placing “For Rent” signs on the property are examples of a narrow approach to advertising. A disadvantage of narrowly defined advertising is that it may take longer to fill a vacancy.
Truth in Advertising
Take care not to exaggerate the features of the rental property, puffing it up to impress potential renters. While it might sound good to wax eloquent on the property’s amenities, particularly when the amenities play to the needs and desires of future tenants, the choice of words (oral or written) or even the manner in which the words are spoken can potentially cause problems for the landlord. A landlord can increase his liabilities and responsibilities by his actions and his promises.
Location
Location, location, location – a golden opportunity ready made for advertising. A desirable location is definitely a strong selling point and can mean big bucks for you – if you’ve got location, flaunt it (as long as you’re truthful). If potential renters want to be located there, they are also more likely to want to stay there and they may have friends. Don’t discount the power of “want over need.”
Don’t Forget Curb Appeal
If you’re looking for some free help in advertising your vacancies, don’t forget curb appeal. The exterior of your property gives a pretty good indication of the condition of the interior. As prospects drive by and picture themselves living there, they are also being conditioned to the standard that is expected to maintain the property. If your property is clean, well-kept with fresh paint, pretty landscaping with grass and flowers, cash in on the value of that first impression.
Distinctive Characteristics
Visit your property as if you were a prospective renter. What do you see? What don’t you see? Would your property’s amenities favorably compare with other rentals in the area? Amenities play a large role in the final selection of a rental unit. Ideally your property should have amenities that appeal to the widest market of potential renters. Pools, green-belt areas, game room, or a fitness center can be as important as in-unit laundry facilities, latest model appliances, or reserved parking. Many renters look for properties with easy driving access to major highways while others look for property locations on public transportation routes. The availability of hospitals, medical offices, schools, shopping centers, or other retail businesses may play a part in the decision to “live here, not there.”
Local Markets
Supply and demand in a local market has a direct impact on the depth and quality of applicant pools. Before you adjust your standards determine the cause and effect of such a decision. Adjusting your standards is not the same as deviating from your standard. Don’t risk a fair housing complaint by treating applicants differently. Even if there is only one applicant, you are not compelled to take the applicant if he/she does not qualify under your standards. Installing a bad tenant is a bad decision every time.
Setting market rent is a better strategy for the long-term. However, you may decide to offer “specials” or other incentives to try to beat the competition. Words of caution for this strategy – make sure you can afford to discount the rent and make sure you do not violate any state or local laws regarding such programs.
Rules and Regulations
There are federal, state, and local laws governing most aspects of landlording. Most states have detailed landlord-tenant statutes and some local municipalities regulate certain aspects of rental housing as well. State and local laws are almost always more restrictive than are federal laws. You will be required to comply with the most stringent of laws. Of particular importance to landlords in their advertising is complying with federal Fair Housing requirement Section 804(c).
Section 804(c)of the Fair Housing Act specifically makes it unlawful to make, print, or publish, (or cause to be made, printed, or published), any notice, statement, or advertisement, with respect to the sale or rental of a dwelling, that indicates any preference, limitation, or discrimination based on race, color, national origin, religion, sex, familial status, or handicap. This prohibition against discriminatory advertising applies to single-family and owner-occupied housing that is otherwise exempt from the Fair Housing Act.
Traditional Advertising Methods
These tried and true advertising methods have long been the cornerstone of many landlords’ advertising plans.
- Word of Mouth
- For Rent signs
- Newspaper / Magazine Advertising
- Bulletin Boards
- Local Employers
- College housing placement office
- Military Base Housing Coordinator
- Section 8 Office
- Networking / Landlord Associations
- Mailers – Direct Mail, E-Mail
- Flyers
- Signage
- Websites – your own and/or others
- Vacancy listing services
- Social media networks
- Radio / TV
- Cold calls to local business to generate referrals
- Pay per click web advertising
Evaluation
You should evaluate your advertising effectiveness in order to determine what works and what doesn’t. Keep written documentation of your advertising efforts, including a print copy of each ad placed, the number of responses received from each medium, the number of qualified applicants obtained from each medium, and the cost (including time) of each medium. From this information you can get at least a rough idea of what advertising media are best for your particular property under various market conditions.
Document Retention
You should keep all advertising copy and information regarding responses for at least two years in order to show that you have non-discriminatory advertising policies in the event that a prospect or applicant files discrimination charges.