When it comes to investment opportunities, the real estate market has always been the big bull. Be it, investors or small-scale businessmen, the real estate market never fails to deliver to anyone. The best part? It can make you money while you sleep. You can rent your property and make a profit. If you are thinking of investing in a property you want to monetize through a rental service, now is the time.
The property rental investment model is one of a kind. It brings both sustainability and predictability at once. However, there is just one hurdle in this profit beacon. It is highly competitive that makes it difficult for a newbie property to gain leverage over established ones.
But all hopes are not lost.
There is nothing that strategic and tactical planning cannot win over.
In this post, we deep dive into the top 5 methods to bring you revenue month over a month, even as a beginner when you rent your property. Let’s dive in.
5 channels to increase profits when you rent your property in 2021
The core of every high-performing rental property consists of two elements: the location and the price. Optimizing these two elements is naturally your starting ground. But this is just the beginning.
If you have to gain sustainable sales, creating an omnichannel sales pipeline is a must, failing, which can potentially break the spine of your business. But while you are deciding your sales channels, optimizing your CAC (customer acquisition cost) is critical, or else you may end up investing more than gaining.
Making your decision-making process easier, we have curated the top 5 best-performing channels that you can deploy to create your multi-channel sales program in 2021.
1. Strategic collaborations
Partnerships and collaborations are one the classic growth hacking methods of all times. Being open to collaborations and partnerships not only helps you create robust sales channels but improves business safety. Whether there is inflation or deflation in the market, your partners help you surf through the tide.
Here’s how you can get creative about it.
Visibility is a critical factor when you rent your property. After all, if your target audience is not aware that your property exists, no amount of work or investments will yield any sales. Partnering with existing businesses and brands is a smart decision here. It not only exposes you to new audiences but creates trust in them as the other brand promotes you.
Enrolling yourself in travel sites like Airbnb, Trivago, and Booking.com can just be the right exposure when you rent your property. The best part? The booking.com channel manager makes it super easy to acquire sales right from your property management software.
Creating strong affiliate programs is yet another way to grow exponentially in sales and revenue for any property. However, you need to partner with brands strategically here. Your best affiliates are the ones that operate in the same product category but are not your direct competitors. This ensures you create your brand authority in the long term.
2. Aggressive marketing
You are operating in a landscape of attention economy, where you and competitors are striving for the same target audience’s attention. This makes staying at the top of their minds critical. However, traditional marketing fails to achieve this goal. You need an omnichannel marketing communication system to attract, acquire and retain your customers when you rent your property. Here’s how you can do so.
Organic and paid marketing
Creating a marketing mix of paid and organic marketing campaigns can just give you the right traction for your business. However, the success rate and the ROI (return on investment) depends upon how well you optimize the creative ad sets of your campaigns. Ensuring that your content, context, and offer are consistent is critical for the highest conversion rates.
Influencers are the most significant assets for any marketing campaign. Collaborating with micro-influencers for reviewing your property and overall experience can gain you new eyeballs in no time. The best part is they are one of the best ways to gain your customer’s trust.
3. Create loyalty programs
Customers are the most valuable assets of your rental business any day. However, here’s the thing. Acquiring a new customer can be six times more expensive than retaining one. This makes your retention programs critical to bring sustainable value to your business. But what is your existing customer base that could do more than just bring sustainability?
Loyalty programs ensure that you have robust acquisition and retention programs working together to bring the maximum revenue in. The best part is you can optimize your investment costs while doing so. Here’s how.
Reward programs are the best way to ensure your existing customers know you value them. A good reward program can skyrocket your customer’s LTV (lifetime value). Here’s what you can do.
Create personalized experiences and special offers like discounts and services for your loyal and frequent customers. This will ensure they keep coming back. You can even create premium membership programs that let your customers curate their services for themselves for an annual fee.
Your existing customer base is not only a valuable asset to improve revenue but also customer base. Initiating a referral program can be the most cost-effective marketing strategy for spreading the word.
Your new customer base is likely to be high-quality leads because of the pre-existing relationships they have with your existing customer base. But for an effective referral program, you need to incentivize both the customers: existing and new.
While networking events and tradeshows might not look like the best opportunity to gain high-quality leads for your rental property, you need to look closer. Events and tradeshows at their core are about strong networking. Held online or offline, it is a great place to get conversations going on with people.
Not only can you gain customers who might get interested in your property theme but develop strong partnerships with indirect competitors who can help you gain just the right traction that you have been looking for. Here’s what you can do.
Sponsoring events and co-sponsoring tradeshows around the tourism and hotel industry community is a great way to gain customers and explore new business opportunities. It’s not just great networking but immensely valuable for creating popularity, especially the events that media or press covers. The exposure that your property can get is immensely valuable.
If your promotions budget is tight and you are in no shape to sponsor or co-sponsor events, you can still gain some levels of traction. Attending community meetups and events around the year is a great way to give your property exposure. You will find travel, tourism, and hotel groups on social media sites like Facebook, Linkedin, and Instagram in abundance. The idea is to get as much exposure as you can.
5. Owned sales asset
Having partners and collaborators is a great way to gain traction, but the ultimate foundation of achieving sales has to be your customer acquisition assets. Having your property developed is not enough to stand out in front of your customers. You need to go further.
You need to create your community of loyal fanbase. This is your ultimate sweet spot. Here not only would you attract new customers organically but will experience maximum traction with the minimum effort. But all this is possible only with your own business assets. Here are a few considerations.
Although developing an app can look like the most unproductive task right now, it has multifarious benefits. With an increase in customer base, one of the most challenging tasks you would have to do is keep communicating with your customers.
Getting an app installed by your customers might just be the best way to have end-to-end communications while improving a personalized brand experience. But it does not stop at low-cost marketing.
With an app tracking each customer’s buying behaviour in real-time, creating forecasts for what offers would work and what won’t be easier for you. The best part? You can even create exclusive offers, discounts, privileges and notify them about any of their upcoming bookings with your brand.
In short, an app acts as unified marketing, customer experience, and sales machine for your rental property. But, building an application does not have to be expensive all the time. Lodgify, a vacation rental software, is a powerful tool that you can substitute as an app.
Having an online address is critical for building a brand, authority, and trust amongst your target customers. It is the one single marketing asset that can create genuinity around your business.
The real estate market is sustainable and has huge returns on investments when you rent your property. But to witness the real money flow, you need to think long-term.
If you are looking for short-term investment opportunities, this channel is not you. However, if you can train your mindset to be patient, there is no other market that is sweeter than real estate.
The above methods are sure to kickstart your business and truly get the maximum of your property; you need to look beyond expert advice. Remember, nobody knows your business the way you do. This makes you uniquely eligible to make your investment venture a true success.
With expert advice at your help and details of your property, on the other hand, you can make your property the most coveted in no time.
The only question left to answer is, will you?
Atreyee Chowdhury works full-time as an Instructional Designer and is passionate about writing. She has helped many small and medium-scale businesses achieve their content marketing goals with her carefully crafted content that is both informative and engaging. She lives in Bangalore, India with her husband and parents. She loves to read, experiment with different cuisines, travel, and explore the latest content marketing and L&D trends in her free time. You can reach her on Linkedin or write to her at firstname.lastname@example.org to discuss your content marketing requirements.