As a property manager, you are always on the lookout for new clients in real estate owners, but a great and often overlooked place to start the search for future partners may be your own renters.
Many potential home owners—and would-be clients—are simply under-informed about the financing possibilities and options that might make owning instead of renting worthwhile. Giving your renters the information about the financial opportunities of home ownership can help broaden your market of investors and clients.
Here are a few helpful tips for turning your renter into a real estate investor:
Make home ownership feel possible.
With housing prices skyrocketing in certain markets, many renters may find it hard to imagine themselves affording a home. The planning process alone can be daunting, and considering all the costs associated with a home represents a huge barrier for renters looking to transition to ownership.
As a property manager, you can give your renters resources to make that dream of owning a home that much closer to a reality. Provide a roadmap of how to begin the process of property ownership in the form of brochures, seminars, or meetings available to tenants, and include examples of other renters that have become home owners. This will show your tenants that investing in their future is possible and that you are a property manager that cares.
Give renters comparisons between renting and owning costs.
In addition to guides and examples, give renters a breakdown of comparisons between the costs of renting versus the common costs of home ownership. Many renters also pay for a variety of utilities and services beyond their base rent; home ownership could mean paying nearly equivalent costs depending on available mortgage rates.
On top of that, potential owners would be paying into an asset rather than spending rent money that will never come back to them as an investment. Seeing the numbers could help a would-be home buyer to explore the possibilities of ownership.
Explore financing possibilities with professionals.
Once a renter is interested, you can assist them in networking with a mortgage professional who can find the best path to ownership for them. Plenty of financing options are out there that make home-ownership more accessible for first-time buyers than your renters might be aware of, so connect them with that information.
In Idaho for example, many buying their first home make use of the Federal Housing Administration program to pay only 3.5% of the upfront costs of owning a home versus the traditional 20%.
Assist renters in planning for ownership.
With the possibilities in front of them and the costs worked out, renters can now make a personal plan to become a real estate investor. Sit down with them or connect them with financial advisors and realtors who will be able to take interested tenants into the next phase of investing for their futures. If you partner with realtors, this is a great opportunity to send business their way and create opportunities that are mutually beneficial for everyone. After former tenants have settled into their first property and look to expand, you will be the first place they turn for property management services.
By investing in people and relationships through helping your renters fulfill their dreams, you are building a potential client base and practicing good business. Tenants will see that you care and will want to work with you long-term. All you have to do is give them the time and resources to see that home ownership is a possibility worth investing in.
For more information on property management and real estate investment, contact 208.properties today.