The first thing that may come to mind when you think about real estate leads may not be renters. But if you think about the huge opportunity you have to transition apartment dwellers, for example, to homeowners, you might want to consider marketing to this group as part of your portfolio of potential home buyer leads.
Which Renters Are Potential Home Buyer Leads?
Renters possess a unique position in real estate. They rent for so many reasons that they may or may not make great home buyer leads. Knowing what those reason are and how owning a home may benefit this will allow you to target them effectively. Potential reasons for renting include:
- They may have just moved to the city and are trying to learn more about the areas they like.
- They may be currently looking to buy their first home after renting for so long.
- Some rent homes first to get their feet wet in a bigger space that requires some maintenance.
- Others could be in transition either having just moved to a new place or trying to find the perfect home.
- A few may not have been able to afford the home they used to live in and found renting to be a great option until they could do a better search for a permanent house to call their own at a better pricepoint.
I’ve seen every example of this and everything in between.
Where to Find Renters
So where do you go about finding potential home buyers in the rental market? Companies like Dataman Group actually offer lists of what they call “Enhanced Renters” that give you good targeting options so you can hone in on the most likely future homeowners by location, income, dwelling type and marital status.
You can also do well with marketing to those who live in multi-family dwellings that aren’t the typical conglomerate apartment homes. A simple flyer offering your special service catering to renters looking to buy homes is a good way to reach them.
Partnering with insurance agents who offer rental insurance is a good resource, too. In exchange for their marketing your real estate services to their renters, you could offer their homeowners insurance to your new clients.
Get a list of homes from the MLS that have been leased in the past 6-9 months. If you know that most leases in your area are 12 month leases, then you know that these leases will be expiring soon and they may be looking to make a move.
How to Market
When you do create a flyer or email, it’s important to talk to the renter’s needs. Giving them stats on the areas you serve to entice them is important to include. Another great piece of information is listing the advice and brief explanation of your process when helping them find a home. Give them a good picture of what owning a home could be like. Coach them with advice that demonstrates how purchasing a home may be better in the long run by comparing a sample down payment on a sample home price in the area and how much their mortgage could potentially be in 15 years with today’s current rates. Consider hosting a home buyer seminar or workshop.
By adding renters to your list of home buying prospects, you could be tapping into a market that few are working with. It will also give you more leverage when these renters need potential upgrades in their housing down the road. With their friends who are also currently renting, they could be a great resource for referrals. Get creative, do some research and speak their language, and you’ll have a new group of home buyers to draw from!