During recent talks with several current tenants, it has become very apparent that some tenants are very keen and ready to buy property. They’re desperate to get out of the renting cycle. Unfortunately, many tenants simply lack the confidence or know-how to move forward on their dreams of owning property. With rising rental prices and rental housing shortages, it makes sense to help tenants get into their own property sooner.
More Property Owners = More Property Management
Why would a property manager want to help one of their renters become a property owners? It may sound counter-intuitive, but doing so could actually help grow your property management portfolio. That’s because property owners might also need property managers!
You should have a proven system for helping your tenants find and purchase property. Not only are you helping make your tenants’ dreams come true, but you are also getting the sale. Even if you are not a sales agency, you can work to refer the lead on to one that will share their fee with you.
As if that weren’t reason enough, remember that tenants also have family and friends. If you work on adding value for your tenants, I can personally attest that they will refer business to you.
Where to Begin
How do you get started? It’s really about providing education and raising awareness. Most tenants are unaware of the options available in the marketplace or how to even go about getting a home loan — or if in fact they are even eligible for a loan.
Your buyers may in fact be on your front door step, especially if you have a rent roll. Its worth considering marketing to your tenants and opening their eyes up to possibilities, or at least encouraging tenants to have that conversation with a mortgage broker who can give them the right advice to help them move forward with their plans and get them out of the renting cycle.
Doing this has many benefits in the growth of your portfolio, your brand, and your business.
Answering Questions, Building Confidence
Often tenants caught in the rent cycle are afraid to ask the all-important questions about how to grow their wealth through property. If you are armed with the information and tools to take to your tenants to help them get into their property sooner, and also educate them on the advantages of investment property to grow wealth, this will then be a great way to build your portfolio over time. If you give great advice and help enough people, this will also create a great referral system.
Taking the Next Steps
Why not think about getting some industry experts, financial planners, and mortgage brokers together for a seminar held for your tenants? Why not take a bus tour of your potential investment properties on the market, including a mortgage broker and financial advisor together with your tenants? This will encourage tenants to ask questions and encourage them to learn about and therefore buy property, and then leasing out those properties to create leverage to grow their property portfolios. These ideas will bring opportunities.
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