Navigating the world of property management can often feel like a high-wire balancing act, particularly when it comes to securing the right property management leads and clients. But fear not!
The path to success becomes clear when you understand your target market, communicate effectively, and employ savvy property management lead generation strategies.
More good news: We know a guy who happens to be an expert in scaling up residential property management companies – Jeremy Pound, CEO of RentScale.
We reached out to Jeremy to talk about the ins and outs of successful lead generation property management strategies for residential PMs. In this article, he’ll help guide us through key steps, providing actionable insights for how to find clients for property management company.
Let's turn those leads into lucrative opportunities!
Meet the Expert: Jeremy Pound, CEO of RentScale
Jeremy Pound is the CEO of RentScale, the largest sales consulting and coaching company in the residential property management industry. They’ve trained over 400 companies on how to successfully grow their property management business by becoming “new customer machines.” He is also the publisher of Strategic PM - The Magazine for Property Management Entrepreneurs and Executives.
Property Management Leads Generation Process
So, just how do you generate more leads for property management? Learning how to get property management leads should not be a convoluted mystery. Pound is going to walk us through a comprehensive strategy for property managers to find leads and effectively grow their business in just 8 steps.
By following these steps, you’ll be able to develop a targeted and effective growth strategy that caters to the needs and preferences of your ideal clients. So, let’s look at how to get more property management clients.
1. Define Your Ideal Target Market
Not every prospect is a fit. And the key to growth is targeting the right people.
When first starting out, a property manager might focus on pure hustle and price. But eventually, that’s no way to scale for profitability. (On that subject, Pound recommends the excellent management book, “What Got You Here Won’t Get You There,” by Marshall Goldsmith.)
“Something I talk about all the time is that the opposite of ideal fit client is a misfit,” says Pound. “You want to work hard to avoid those misfits, which means you need to label the right-fit clients, know who they are, and describe them. That's the best way to grow: not just getting more net clients, but getting better and better quality clients.”
In short, how to find property management clients and build your list of high-quality leads? Define your ideal customer. Pound outlines the specific types of property management investor clients:
- Experienced investors: “There are different types of experienced investors. Are you going after those who value risk aversion and peace of mind? Maybe you're charging a little more and adding more ancillary services, but you're protecting them from all the things that can go wrong. Or are you going after really aggressive risk-takers who are looking to optimize every dollar possible?”
- Accidental landlords: “Are you built to serve accidental landlords? Oftentimes homeowners move on, they move up, or they downsize, and they look to keep their very valuable properties as rental properties.”
- Working professionals: “Maybe you’re going after working professionals, such as high earners who are building a portfolio. They got the real-estate investing bug, they know that maybe they don't want to pull their money into 401K and index funds, and so they're actually building a portfolio for retirement.”
- Out-of-town investors: “Are you really built to serve out-of-town investors? There are a lot of people, myself included, trying to build a diversified national portfolio of single-family rentals, and [some PMCs] are really built to serve that person because they need somebody local who's an expert and understands that market.
Once you define your ideal customer, which is the most important step, everything comes from there, Pound says.
2. Clarify How You Are Built To Serve Those Clients Best
According to Pound, the simplest next step is to build your processes and procedures around that target ideal client.
“Everything we do should be a story around why all of our policies, our pricing, our procedures are all built to best serve that client,” he says. “I like to call this ‘avoiding the commodity tax.’ If you go out and spend money on advertising, or if you're buying new leads, or you're trying to spend money on SEO as if you're just a commodity and you've got nothing exciting to say – no sharp story, no compelling positioning – then you're basically paying the commodity tax.”
“You're going to have to buy all these leads, and most of those people are not going to buy from you,” he continues. “You might be buying 10 leads to close one deal, or you might be spending a bunch of money on advertising that's just going over everybody's head. Nobody's paying attention to it because it's not exciting.”
This brings us to the next strategy…
3. Use Dog Whistle Language
Pound emphasizes that what catches our attention is the uncommon, the novel, and the specific. Your strategies on how to get property management clients should be creative and set you apart from the competition.
Our marketing should cultivate that specificity. Here’s how:
“A term that we like to use around here is Dog Whistle Language,” Pound says. “If you know a dog whistle, only a dog can hear it. So when you know who your client is, it allows you to speak Dog Whistle Language – their language.”
“I always try to enter the conversation that's already happening in their mind. If we have a very specific client, we know the problems that they're trying to solve, we know the frustrations they have and the goals they have. So let's just enter the conversation that's already happening in their mind! That’s going to make your marketing less expensive and way more effective, and it's going to make your sales process even better.”
“If we can say what our prospects are already thinking, but we can say it better with more clarity, then they're going to key into that.”
Ask yourself:
- What are they already thinking?
- What is the problem they're trying to solve?
- What are the frustrations they have?
Then, describe it even better than they can, says Pound: “That has been proven to create trust, to create authority, and to make them remember you.”
4. Understanding Demand Generation versus Demand Fulfillment
“We want all our clients generating demand for their service,” Pound says.
Demand fulfillment is “just going out and buying pay-per-click ads because people are already searching for your product.”
This is a commodity-based approach. Let’s say something needs a new roof. They’re just going to type “roofer Boca Raton.” Pounds says that’s demand fulfillment: “You're just fulfilling the demand that's there, right? You're just hoping to get lucky. You're spending as much money as possible and just showing up.”
Instead, Pound says, “Demand generation might be going out and talking to people about how if they've had any storm damage, they might be able to get their roof replaced through their insurance.”
“There's a lot of examples of this in property management,” Pound says, “especially when you're going out, and you're teaching people to invest in real estate – actually going out there and creating the market for your product. It's more sophisticated, but it's way more profitable, and you have way more control over that than just sitting around and playing the demand fulfillment game.”
Pound gives an example of a PMC going after high-net-worth individuals.
“Let’s say you’re in Florida, where Publix is headquartered, you might be going after all the executives at Publix. You’re basically saying, ‘Look, there are other ways to pay for your kids' education. There are better ways to save for retirement. You can live a better life if you get involved in real estate investing.’”
That’s demand generation.
5. The Buyer’s Pyramid: Have Campaigns For Each Level of The Buyer’s Journey
Source: "The Ultimate Sales Machine" by Chet Holmes
Time to get into the Buyer’s Pyramid.
The top 3% are in the demand fulfillment mindset. They know what they need, they’re searching for the service or product, and they’re ready to buy.
Then there’s 7% that are loosely open or becoming open to the idea of needing a product or service. As Pound says, “Maybe they're kind of frustrated with their property manager, but they're not so frustrated yet that they're ready to go search on Google.”
That’s the moment to hit them with direct mail or messaging that enters the conversation that’s already happening in their mind. Pound says to aim to say what they were thinking better than they can say it. Then they may move up into the 3% who are ready to make a decision.
Below that is 30% of the potential market that isn’t aware of the existence of your product. They may be renting their homes or about to sell and simply don’t know that property management exists.
Then there's another 30% of the market that just misunderstands. Pound elaborates: “Maybe they’ve been self-managing forever, and they think that property managers just take a piece of the pie rather than make the pie bigger.”
“Really good property managers explain to their prospects that they don't just take a piece of the pie,” Pound says. “Really good property managers actually expand the pie. They get more money for the property either by being able to charge more through marketing or reduce vacancy and turnover – and therefore, they're able to actually reduce all the losses that you would have from a rental property.”
In the end, you can focus on each of those separate types of prospects and build campaigns that speak directly to them.
6. Track The Numbers and Optimize: Unit Acquisition Cost & ACV
To optimize your acquisitions, it’s key to understand your numbers. That’s obvious, but how do you do it, and what are the most important numbers to track?
Pound points to unit acquisition costs (UAC), customer lifetime value, and annual contract value (ACV).
“We have monthly recurring revenue for months and months, if not years and years,” Pound says. “So you have to understand some of these numbers.”
- Unit Acquisition Costs (UAC): “How much does it cost you to acquire a door?”
- Annual Contract Value (ACV): “How much does each customer bring me annually?”
- Customer Lifetime Value (CLV): “How much does each customer bring me over their entire lifecycle as my client?”
Pound breaks down how CLV affects your judgment on UAC. If a customer stays with you for five years and you're making $200 a month, their lifetime value is going to be $12,000.
“You start to understand that you're willing to invest a little bit more than you thought to acquire that customer,” Pound says.
This brings us to….
7. Build The List And Lower Your Costs
You want to be always building your list of potential clients.
“Think about that buyer's pyramid,” Pound says. “Think about attracting and courting those people that are lower in the pyramid before they're ready to buy. We can actually acquire those people for pennies on the dollar versus the really high expense of going after Google pay-per-click or buying leads.”
“Let’s say one day, a major life or business event will happen that will turn a prospect into a buyer today. Instead of having to go to Google to look for you, where you have to spend $17 per click, they already look to you for advice and help because you’ve courted them over time. When the life or business event happens, they’re ready to buy from us.”
8. Sweat Equity or Check Equity
It takes investment to create clients. In the end, Pound says, that investment decision comes down to: “sweat equity or check equity.”
- Sweat equity = time spent
- Check equity = money spent
“Some entrepreneurs and business owners have more time than money, and they're going to want to spend money on advertising that works,” Pound says. “On the other hand, some entrepreneurs or property management owners have more time than money, and they're going to want to invest their time.”
Sweat equity could look like:
- Networking with referral partners
- Direct outreach (outbound) to investors
- Calling FSBOs
- Hosting events or going where the investors are
- Social Media (LinkedIn, Twitter, YouTube, FB, Bigger Pockets)
Check equity could look like:
- Direct mail
- Digital marketing (Google PPC, YouTube, LinkedIn, Bigger Pockets, FB)
- Radio and TV
- Outdoor
- Hosting premium events with recognized speakers
How to Get Property Management Clients for New Companies
Finally, the sweat equity vs. check equity conversation brings us to a final, more tactical piece to end on. We’ll briefly go over some of the best lead-generation tips for new and growing property management companies. Your PMC can assess which of these are the best strategies after going through the steps above.
Here are some of the tried and true methods that NEW property management companies have used to generate their first 10, 20, and 50 clients.
Referrals
You can get referrals from friends and family, realtors, and other clients. Leverage your existing network and ask for referrals. Satisfied clients and professional contacts can often provide recommendations to potential leads.
Use LinkedIn to connect with potential clients, join industry groups, and share valuable content. It's a powerful platform for B2B lead generation.
Event Marketing
Host or attend industry events to network with potential clients. These can range from local real estate meetups to larger industry conferences.
Cold Calling
While it may seem old-fashioned, cold calling can still be effective. Just ensure you're targeting the right property owners and investors and offering clear value.
Use targeted Facebook advertising or post in local groups to reach potential clients. Consider running ads targeting landlords or real estate investors.
Podcasts
Start a podcast or guest on existing ones (like our Triple Win Podcast). Discuss industry topics to establish your expertise and reach a larger audience.
Local businesses Strategic Partnerships
Partner with local businesses that serve the same market. For example, a local moving company might recommend your services to new residents. You can also join local clubs and the Chamber of Commerce and attend meet-ups to build a network that refers leads and clients.
Direct Mailing
Send targeted direct mail campaigns to potential leads. This could include newsletters, postcards, or informational brochures about your services.
Niche Forums
Participate in online forums related to property management or real estate. Answering questions and sharing insights can help attract potential clients.
Review Local Listing Reviews
Monitor local listing reviews such as on Google and Yelp to find landlords who may be having trouble with their properties. Reach out to offer your services.
Browse Newspaper Ads
Look for rental listings or properties for sale. Reach out to the owners to offer your property management services.
Remember, the effectiveness of each strategy can vary based on your specific target market and location. Testing different approaches and tracking results will help you determine the best strategies for your business.
11 Ways for Growing Companies to Get More Property Management Clients
Been in the business for a while? Looking for new ways to grow? Feel like you’ve hit a plateau? Here are some tips for successful lead generation in a growing PMC.
Podcast
Continue podcasting efforts, considering a broader range of topics or inviting industry experts for interviews to attract a wider audience and potential leads. A great example of this, in addition to the Triple Win Property Management podcast, is GC Realty’s “Straight Up Chicago Investor,” which is widely successful in the property management space.
Content Marketing
Create valuable content on your website and social media in order to capture leads from various channels. This can include blog posts, infographics, or eBooks that provide insights to property owners. A good example of content marketing for lead generation is Realty Medics.
Facebook Ads
Use advanced targeting options in Facebook Ads to reach a larger, more specific audience. Consider retargeting ads to website visitors or people who have interacted with your content.
Google Ads (PPC)
Run pay-per-click (PPC) campaigns on Google to appear in search results for relevant keywords. This can help attract landlords or property owners searching for management services.
Search Engine Optimization (SEO)
Optimize your website and content with relevant keywords to rank higher in search results, increasing visibility and attracting organic traffic.
Email Marketing
Nurture your existing email list with regular newsletters or updates, providing valuable information and promoting your services to encourage conversions.
YouTube (Videos and Ads)
Create educational videos on property management topics or advertise on relevant channels to reach a wider audience on YouTube.
Webinars
Host webinars on relevant topics to provide value to your audience. This can help position your company as an industry expert and attract potential leads.
TV Ads
Depending on your budget, consider TV advertisements. Although more costly, they can reach a wide audience and increase your brand visibility.
Billboard Ads
Outdoor advertising, like billboards, can help increase local visibility. However, it’s best suited to companies targeting property owners in specific geographical areas.
Pay-per-Lead Services
Use services that sell qualified leads. While this involves upfront costs, it can provide a stream of potential clients that are actively seeking property management services.
How to Convert Leads to Property Management Clients
Converting leads to actual clients is a critical component of any lead generation strategy, not an afterthought. To do this, it’s critical to optimize your conversion process and continually assess its effectiveness.
By following Pound’s 8 steps for generating more leads and then streamlining the onboarding process, you will ensure that every interaction with a potential client is an opportunity maximized. It's not enough to attract leads; the goal is to convert them into clients. Without a focus on optimizing the conversion process, valuable leads can slip through the cracks, leaving potential business on the table. A well-optimized conversion process can mean the difference between a lead merely expressing interest and a lead becoming a long-term profitable client.
That’s what Jeremy Pound’s advice above is all about!
Final Thoughts
In the end, though, whichever tactic you choose, getting new clients – ideal new clients – is all about targeting and positioning.
As Pound says, “The punchline at the end of the day is: If you’re going to spend money and time, you might as well be positioned. You might as well have the right language – the dog whistle – so you can get more out of every ounce of your sweat equity or every penny of your check equity.”
For more insights from leaders like Jeremy, check out our Triple Win Podcast for residential property managers. Or, here are a few places to keep reading about growing your PMC:
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