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Want to hear something surprising? More than one-third of our nation’s veterans who are in the market to buy a home are unaware of the VA loan, according to a 2010 Department of Veterans Affairs survey. And they aren’t the only ones. Many potential tenant real estate leads are woefully ignorant of some very valuable information.
“In the 35 largest housing markets in the country, nearly 14 percent of renters have high enough credit scores and incomes to afford a median-priced home in their market,” said usnews.com’s Devon Thorsby, quoting a Zillow study.
So, what are they waiting for?
Zillow’s senior economist chalks up these renters’ lack of a home of their own to a lack of a down payment. With the many low-down payment options and down payment assistance programs in existence, they may just be capable of buying a home. How many of them, we wonder, are unaware of that?
Without this information, they’ll continue being at the landlord’s mercy when it comes to how they live in their home, whether or not the kids can have a pet and what color they can paint the walls.
They’ll continue enriching his or her bottom line while missing out on one of the best wealth-building vehicles on the planet – real estate ownership.
So, intrepid marketer that we know you are, we offer up this brilliant real estate lead idea for you: Reel in some buyers by fishing in the tenant pool.
According to the U.S. Census Bureau, 37 percent of U.S. households are renter-occupied. That’s a total of 43,837,496 households.
Statistics from the National Multifamily Housing Council shows that the largest share of apartment renters earns more than $50,000 per year and nearly one fourth of them have children.
“As householders age and become more settled, their homeownership rates rise steadily,” according to a study from the Joint Center for Housing Studies of Harvard University.
“About one-third own their homes while the majority still rent. By the age of 40, however, two-thirds of householders own homes,” they conclude.
A recent Core Logic data dump shows that, although rent growth slowed from August 2016’s rate, it’s still up 3 percent on a year-to-year basis.
Rapidly rising rents, such what we’re seeing nationwide, should prove irresistible incentive for many tenants. Combine that with eye-opening facts about low down payments and down payment assistance to convince tenants to ditch the landlord and purchase a home.
Determine which marketing vehicles you’ll use to reach out to these potential tenant real estate leads. Think old-school on this one — postcards, newsletters and email blasts are all effective. And of course, the right leadsite can make all the difference.
Consider creating infographics showing how it may be cheaper to buy than rent. Bust the myth of the 20 percent down payment. Explain how insane it is to rent when you can build wealth through the forced savings of homeownership.
Then, you’ll need to grab their attention quickly with stunning facts. For instance, the Census Bureau tells us that the median net worth of U.S. homeowners is “$199,557 vs. $2,208,” for renters, according to the Orange County Register’s Jonathan Lansner.
The median net worth of homeowners is 90 times that of renters!
Show these prospects the benefits of homeownership – how it helps build wealth and how, over the long term, it’s cheaper than renting.
Then, show them how they can buy a home with down payment assistance and government-backed loans.
Targeting tenant real estate leads can be as simple as choosing a condo or apartment community and farming it. But, like most things in business, composing a plan of action will make the process far more efficient and effective. Consider employing some of the following strategies:
For instance, using demographic information from NAR’s “Profile of Homebuyers and Sellers,” you might request a list of names and addresses of married couples from age 35 to 50 with a combined income of at least 28 percent of the median price of a home in your area.
In some parts of the country, rent hikes are slowing down, but they’re certainly not stopping. This offers little solace to renters who face steep hikes in their monthly cost of living expenses.
Now is the perfect time to pursue these tenant real estate leads.
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