In this blog we will share our experience when it comes to marketing apartments for both rentals and sales with Melbourne’s CBD and surrounds. Most agents do the same thing, often the biggest differential between agencies is the way we advertised. You need to make sure you are comparing apples with apples.
Why do I need to Advertise?
Believe it or not, we get asked this question a lot. “Why do I have to commit to marketing, surely you would have buyers / tenants that you can refer to my property?” This might be relevant when talking about a suburban home, but when it comes to inner city apartments, it just does not work. Consider this a needle in a haystack scenario.
At the time of writing this there were 1197 rental properties advertised on www.realestate.com.au in Melbourne, Southbank and Docklands. Compare this to 107 rentals being offered in the suburb of Toorak. Both areas have a very similar land mass.
Not only is there more on offer, but they are also all very similar in the offering. Apart from the very rare townhouse or warehouse conversation all the 1197 listings were apartments. They vary in age, slightly in size and either come with or without a car park but apart from that, they are pretty much the same. We have a saying at Re-define Real Estate and that is, you can’t sell a secret.
Technology, integration, and automation
Maslow’s Pyramid of Needs lists shelter as being one of our essential needs, along with breathing, food, water, clothing, and sleep. During the pandemic and Melbourne’s record-breaking lockdown, real estate was considered an essential service. This meant we could continue to provide housing services, but it had to be done much differently than before. Social distancing, limitations on numbers of people gathering and the fear of catching COVID-19 very quickly changed the environment for us.
Back in the old days we used to print a stock list and leave it at our reception desk for the public to come and collect. The introduction of the internet helped streamline this process somewhat, but it was the effects of COVID-19 that really changed the landscape for global real estate practices. Considered an essential service the software providers quickly pushed out technology that allowed us to seamlessly and remotely, communicate with prospective Tenants and buyers. This technology also changed the way we operate.
The rental application process explained
Here is the main reason you should commit to a marketing campaign with your agent. The process whether it be to find a tenant or attract a buyer are now all completely automated.
Without an ad online, you miss this automation and rely solely on your busy agent to contact potential clients and tell them about your property. In the suburbs with the fewer number of transactions, this might be possible, in the CBD and surrounds, this is just not feasible.
Application Steps (agent with ad online)
1. An advertisement goes online.
2. The email address listed behind the agent’s profile directs enquiries to a software program. The agent normally does not receive the emails.
3. This program automatically responds to those enquiring, giving instructions on when they can inspect the property.
4. When the prospective Tenant arrives at the inspection, the agent “checks them in” using an app and they are automatically sent a welcome message.
5. This message encourages them to make an application, which is done online by way of link in the welcome message
6. The application is automatically sent to the applicant’s referees or reference. Some already come verified.
7. This application is reviewed by the agent, the good ones shortlisted and automatically sent to the landlord with a recommendation.
8. The lease is signed up and send for an electronic signature.
None of this works without the advertisement online. It is the trigger for the whole process.
So next time you are comparing agents, please avoid the one that says they don’t charge for advertising. The $200 - $300 you save will quickly disappear by being on the market longer and you will likely miss out on creating competition with fewer prospects.
If your agent tells you they do advertise but it is for free, please clarify what you get for this service. Does your property appear online? If so which websites and at which position on these websites?
If you want to find out more about the benefits of advertising, we would love to hear from you. Please contact Re-define Real Estate for an obligation free chat.