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Company Spotlight

Rental Property Marketing

Expanding Your Rental Pool and Decreasing Turn Time By Kori Covrigaru In any industry and in any economic climate, strategic marketing is key. This is especially true in the real estate industry, specifically with regards to marketing rental properties. With tens of thousands of rental properties on the market at any one time, and small investors competing with larger-scale investors, making a property stand out above the rest requires a strong campaign to attract qualified applicants. At PlanOmatic, we offer the tools and technology to do just that. Below are six reasons why you should include floor plans in your marketing campaigns. 1. Assure Accurate Advertising A little white lie never hurt anyone, but a little house is a different story entirely if the resident expected something larger. When you are marketing your rental, it is critical to accurately represent the size and layout of the space. Square footage alone can be misleading, but coupled with a floor plan, a renter should have a clear image of the layout of each room. 2. Quick Turns With tight inventory, the rental market remains highly competitive for residents. In this high stakes market, renters are applying without ever stepping foot in the space. This is risky… No one wants to be surprised by an open concept bathroom. Floor plans put sight-unseen applicants at ease and allow you to rent the property at record speeds. 3. Reduce Showings A floor plan shows renters immediately if a closet is not big enough or if a garage will not accommodate the beloved F-250. We know not every property is for every renter. It is best to filter out the uninterested prospects before losing time on a showing. 4. Expand Your Renter Pool Homes purchased and renovated by families often age into income properties after the children have flown the coop. This could leave investors with an over-improved home that can be difficult to rent at a recovering rate. A floor plan gives prospective renters the ability to understand the property’s layout in-depth with the flexibility of doing so on their own time. This, in turn, increases leads from out-of-range prospects who might otherwise feel uneasy about committing to a property remotely. Showing non-local prospects an online floor plan will expand your rental pool beyond your neighborhood bubble. This increases your access to a group of renters who can possibly afford to spend more monthly. 5. Showcase Unique Features At some point in the shopping process, all houses start to look the same to renters. The neutral palette and builders-grade finishes can leave prospects snow blind after a day of online rental browsing. Stand out on the market by showcasing the differences in your properties. There are important features of a home that do not photograph well like garages, closets, mudrooms, laundry rooms, or storage spaces. Floor plans allow you to show the important, but less glamorous, parts of a home that make it more valuable. 6. Promote Accessible Properties Floor plans are a simple way to illustrate handicap accessibility. A well-drawn floor plan should clearly mark all stairs and will show the size of a space. These attributes are useful in knowing if the home can be easily navigated by a wheelchair. Floor plans for rental marketing is an easy decision. Not only do floor plans attract a larger pool of quality leads, but they also shorten the turn time of the property.

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Sparrow: 3D Study

Executive Summary By Kori Covrigaru PlanOmatic, the biggest and fastest provider of Property Insights and marketing services for the single-family rental industry nationwide, partnered with their client, Sparrow, a leading provider of well-kept single-family rental homes nationwide, to measure the impact of using a Matterport 3D Tour for rental property marketing. Challenge Sparrow had 2 main challenges to address in this study: 1. They needed to determine if there would be an ROI if they invested in 3D tours on all properties nationwide. The ROI would be measured in lead generation, self-showing tour activity, website views, and days on market. 2. They wanted to pilot the operations and technology needed to roll-out 3D. Could PlanOmatic perform the 3D service in Sparrow markets? Could the Sparrow IT team accept the 3D tour and include it in the feed to their website and to Zillow? Solution The data showed that using a Matterport 3D tour to market a property online has a significantly positive impact on leasing activity. Additionally, we confirmed that the operations and technology needed for a nationwide roll-out is ready to go. Details ROI The data showed a positive impact on leasing activity, specifically: • Zillow Leads per day per property increased 18% when a Matterport Tour was used to market the property in Charlotte, NC, compared with properties that only had photos • Website page views per day per property increased 66% in Charlotte, NC and increased 58% in Dallas, TX when a Matterport Tour was used to market the property, compared with properties that only had photos • Days On Market decreased 25% in Charlotte, NC and decreased 9% in Dallas, TX when a Matterport Tour was used to market the property, compared with properties that only had photos. Operations & Technology The PlanOmatic team was able to perform the 3D service in all markets for Sparrow, while keeping a consistent turnaround time and meeting the standard SLA expectations. The Sparrow IT team was able to retrieve the 3D tour URL, embed it into the Sparrownow.com website, and also include it in the feed to the Zillow Group Rentals Platform. We confirmed that the 3D tour was visible on the following websites: • Sparrow • Zillow • Trulia • HotPads 3D Tour Concentration One additional finding from the study is that 3D Tours are gaining traction in the Single Family Rental Marketing space. In 2021, in Maricopa County (Phoenix, AZ), 3% of all available Single Family Rental Homes used a 3D tour to market. In 2022, that number has more than doubled to 8%. Here is the current 3D Tour concentration of each marketin the study: % of all available Single-Family Home Rentals that have a 3D tour San Antonio, TX — 15% Charlotte, NC — 12% Phoenix, AZ — 8% Dallas, TX — 6% Method We tracked 233 properties across four markets: Charlotte, NC, Dallas, TX, Phoenix, AZ, and San Antonio, TX. We created a test group in each market by adding a Matterport 3D Tour on approximately half the properties in each market, and compared that to a control group (the other half) that received the normal marketing services from Sparrow’s existing solution. We created this test group and tracked the properties from January 10, 2022 to March 23, 2022.

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How to Automate SFRs

Quit Wasting Valuable Time and Resources By Kori Covrigaru Could you be wasting 2-4 hours a day on manual marketing processes? We recently conducted research on the time spent on manual processes during a rental turnover and found that marketing departments are losing days of their time on processes that could be automated. For example, let’s say a company has a marketing coordinator who is managing these processes, and they get paid $60 an hour. You are spending up to $480 a day on manual frontend and backend tasks that could be automated through a simple integration. Instead of wasting eight hours on manual processes, you could re-allocate those hours toward more strategic initiatives. From acquisition to tenant turnover, we will inspect each part of the process, enabling you to streamline your steps and save you thousands of dollars each quarter. Single-Family Rental Workflows Single-family rentals (SFR) go through the same cycles repeatedly: acquisition, renovation, tenant acquisition, and tenant turnover. So, you have workflows for every stage of that SFR cycle, but are those workflows fully optimized? Acquisition Acquiring new properties is time-consuming when done in the traditional way. There might be travel time, showings, inspections, and contract negotiations involved that could take months. But with a good system in place, you could acquire new properties 100% virtually. PlanOmatic’s Property Insights does the legwork for you. We collect property data for due diligence, renovations, and leasing decisions and provide you with reports to help make property acquisition decisions. Not only do you get the property condition report, but you also get a Matterport 3D tour. You get accurate property details that you would not otherwise know, and you will better understand the layout, condition, and measurements of the property you are considering. Renovation You have found the right property. It is in the perfect location but needs a little beautification. So, it’s time to start the renovation process. How do you keep proper oversight while you are managing your properties from a distance? Try Matterport 3D tours. Schedule a virtual walk-through during different periods of the renovation so you can oversee the construction without having to be there. Tenant Acquisition Tenant acquisition is the single most important piece of your workflow: without tenants, you have no income. There is a lot of work involved in marketing your rental property – and photography, virtual tours, and listings take time – but you can streamline these processes. You can schedule your photography through PlanOmatic and use an API integration to manage the process easily. The API integration works like this: PlanOmatic’s system tells your system the photos and virtual tour are ready, then it will automatically syndicate it across your different distribution channels. In a recent study, PlanOmatic found this process saved time equivalent to three full-time employees. Tenant Turnover When a tenant leaves, the entire process begins again. Often, property managers need to renovate, acquire new tenants, and onboard new tenants – all of which take a sizable chunk of time. But let’s look at this process holistically with automation in place. Manual Process •          The construction team or property manager sends a communication (by email or spreadsheet), letting the marketing team know the renovation is complete. Marketing gathers the communication daily, spending about 2-4 hours on this process. •          Then, your system automatically orders photography and 3D tours. PlanOmatic automatically emails to communicate that the photography is finished and ready to download. The marketing team downloads the assets and uploads them to Dropbox. This process takes an additional 2-4 hours per day. Automation •          The construction team or property manager simply sends an alert through the client’s system to PlanOmatic, informing them that the house is ready for photography. This will automatically schedule photography. •          When the photography is ready, PlanOmatic’s system will automatically tell the client’s system that the order is ready and then it will automatically syndicate it. One client confirmed that after implementing PlanOmatic’s integration, they could reallocate three full-time employees’ time to new, more exciting marketing activities. PlanOmatic Automates SFR Management PlanOmatic is obsessed with helping property managers and real estate investors be more efficient. Our latest API integration makes it easy to streamline your workflows to save time and money. Learn more about how PlanOmatic integrates with your internal systems by visiting www.planomatic.com/our-services/api-integrations/.

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SFR Marketing Plan

Study Shows One Marketing Tweak Results in 39% Reduction in Days on Market By Kori Covrigaru You can reduce a property’s time on the market by 39% by making one minor change to your single-family rental (SFR) listings: add 3D tours. Is there a return on investment when using 3D tours rather than still photography only? That is the question we set out to answer when we partnered with a client who was considering adding 3D tours to their rental listings. We will not bury the lead. We found that 3D Matterport tours reduced the number of days on the market. Not only that, but it also led to more pre-qualified leads and an increase in unique website visitors. To quantify that, if your carrying cost is $50 a day and you reduce the number of days on the market by seven, your ROI is 133.33% over one year. Considering your Matterport tours can be used repeatedly, you can extrapolate that over several years. That is a massive ROI. Let’s go deeper into what we found during our study, using 137 homes in Charlotte (91) and Dallas (46). Experiment Note: The control group used 15 photos and our test group used 15 photos and a Matterport 3D tour. Data Shows Decrease in Days on Market When we conducted this study, we analyzed 137 homes in two markets — Charlotte and Dallas. We found that on Zillow, listings with 3D Matterport tours received three to five leads per week. In Charlotte, this was an increase of 18%. On SmartRent Tours, we received one to three leads per week. This was a slight increase, likely because in-person tours are not necessary when you have already toured virtually. Our client also added Matterport tours to their website and found that the tours increased page views by 12% in Charlotte and 57% in Dallas. Unique visitors increased even more. Charlotte saw a jump of 18% while Dallas received an increase of 63%. Why Do 3D Tours Perform So Well? In a crowded market, there are many benefits to a 3D virtual tour: •          Extra visibility | They are more visible in listing apps. Zillow, Trulia, and the other major players highlight 3D tours in the list and map view, making them stand out. •          Special icons | Listing sites provide special icons indicating that the listing has a 3D tour. •          Pre-qualifies applicants | Because potential renters can see the whole home by virtually walking through it, they are less likely to pull their application or back out of a lease. With the extra attention that Matterport tours provide, the average days on the market decreased significantly. In Charlotte, the days on market decreased by 39% and in Dallas, the number decreased by 9%. After reviewing the data against different categories (such as price per category), we discovered that the reduction in days on the market was across the board. 3d Tours are Becoming Standard in SFR Marketing While conducting this study, we wanted to go beyond our test group, and research how many SFRs are using 3D tours in their marketing. We found that from 2021 to 2022, there was an increase in 3D tours among the three markets we researched. While not everyone is using 3D tours yet, we predict it will soon become standard. Now, you need to consider this question: are you going to implement 3D tours or be left behind?

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Increase in 3D Tour Adoption

SFR Owners and Investors Are Optimizing Operational Efficiencies and Leasing Their Properties Faster By Kori Covrigaru 3D tours have been around the real estate market for more than ten years at this point. However, it was not until the pandemic did we see the adoption of 3D tours take off within the Single-Family Rental industry. Owners, operators, investors and property managers needed a tool that would enable them to continue their business operations. Whether the focus was onsite punch list checks during renovations or virtually marketing to a future resident, Zillow 3D and Matterport tours, in particular, began to pop up on rental listings across the nation. At PlanOmatic, the leading provider of quality photos, floor plans, and 3D tours to the SFR industry with speed and at scale nationwide, we increased our number of 3D virtual tours for SFR properties across the country by 270% from 2020 to 2021, and increased the number of SFR homes we photographed by 187% during the same time period. Our most in-demand markets for 3D virtual tours and photography of SFR properties in 2021 were Charlotte, Dallas, Orlando and Tampa. Charlotte, NC  •         3D tours | 1,571% increase from 2020 to 2021 •          Photography | 253% increase from 2020 to 2021 Dallas, TX •          3D tours | 608% increase from 2020 to 2021 •          Photography | 234% increase from 2020 to 2021 Orlando, FL •          3D tours | 139% increase from 2020 to 2021 •          Photography | 180% increase from 2020 to 2021 Tampa, FL •          3D tours | 77% increase from 2020 to 2021 •          Photography | 171% increase from 2020 to 2021 As the SFR market continues to thrive and become even more competitive, property owners, investors and management firms are taking advantage of 3D virtual tours and professional photography to attract and capture the interest of consumers online, resulting in faster leasing activity. Essentially, all home searches start online today, and this has fundamentally changed the way SFR properties are marketed. Our clients are trying to get as much property information in front of the consumer as possible, and a 3D tour stands out online allowing future residents to walk through the house imagining themselves there without visiting it in person. We anticipate even greater adoption of 3D tours in 2022 as SFR owners and investors look to optimize operational efficiencies and lease their properties faster. What the Research Shows We conducted a study last year that measured the impact of 3D tours on SFR property marketing on the Zillow Rentals platform, which includes Zillow, Trulia, and Hotpads. The 3D tour study was conducted in partnership with a national provider of well-maintained SFR homes and revealed that SFR property leads increased by 40%, and days on market decreased by 30%, when a 3D tour was published on the Zillow Rentals platform. At PlanOmatic, we have captured and created thousands of 3D tours on behalf of our SFR clients and according to them, 3D tours have resulted not only in more views per property, but in fewer lease opt-outs because the leads are more qualified. In fact, PlanOmatic measured the impact of 3D tours on SFR property marketing and found that property leads increased by 25 percent, and days on market decreased by 23 percent when a 3D tour was used to market a property, compared with only using professional photography. A 3D virtual tour is like a buy-one-get-one-free deal and something every investor should be thinking about leveraging in 2022. It is an easy way to ensure your SFR properties stand out against the competition when they are marketed to consumers, and it is a great way for your operations team to get the dimensions of the property to better inform renovation decisions. 3D tours also allow future residents to explore the home in a real-life way and get a clear visualization of the space, creating more qualified leads. Our 3D tour studies are conducted by PlanOlabs, the research, data, and consulting hub at PlanOmatic that analyzes and optimizes the property lifecycle for SFR investors, owners and operators. With PlanOlabs, we analyze SFR investors’ current state and use our industry experience to optimize their operational and marketing processes to scale and meet their portfolio growth goals.

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3D Tours Utilized on Zillow Rentals

Increase SFR Property Leads by 40% … Decrease Dayson the Market by 30% By Kori Covrigaru Most house hunters start their property searches online today and digital tools such as a 3D virtual tour make viewing a rental home remotely even faster and easier. Whether from a smartphone or laptop, 3D tours allow consumers to get a realistic experience and feel for what a single-family rental (“SFR”) property is like without having to visit it in-person. According to a recent Zillow study, most Americans would like to use digital tools while home shopping, and a vast majority (79%) of those surveyed said they wanted the ability to view a 3D virtual tour. At PlanOmatic, we recently measured the impact of 3D tours for SFR property marketing on the Zillow Rentals platform, which includes Zillow, Trulia, and Hotpads. Zillow is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with great real estate professionals. Our 3D tour study was conducted in partnership with a national provider of well-maintained single-family rental homes. The purpose of the study was to determine if the provider should invest in a 3D tour solution to use on Zillow Rentals—their number one lead source—to attract more rental prospects and to provide a superior client experience. Our study data found an increase in lead activity and applications, and a decrease in days on market (“DOM”) when a 3D tour was published on the Zillow Rentals platform. The data revealed the following: Lead activity in the single-family rental home provider’s CRM showed an increase of more than 40% when a 3D tour was published on Zillow Rentals Lead activity from Zillow Rentals increased by 101% when a 3D tour was published on the platform Applications submitted per property by prospective residents increased by more than 35% when a 3D tour was published on Zillow Rentals The DOM showed a 30% decrease for properties that used a 3D tour on Zillow Rentals compared with properties that only had photos on Zillow “Essentially all home searches start online today, and this has fundamentally changed the way properties are marketed. Our clients are trying to get as much property information in front of the consumer as possible, and a 3D tour stands out online allowing future residents to walk through the house imagining themselves there without visiting in person,” said Tim Rose, Director of Operations for PlanOlabs at PlanOmatic. “Our study was conducted to test whether a 3D tour had a measurable impact for our client, and the results prove that by publishing a 3D tour on the Zillow Rentals platform, SFR owners will generate more property leads and applications, and reduce the days on market.” Rose added, “This is a case of supply and demand. Consumers are demanding and prioritizing 3D experiences online, and by adding 3D tours to the Zillow Rentals platform, SFR owners and operators are meeting that demand with a high quality virtual experience that their future residents now expect.” The 3D tour study was conducted by PlanOlabs, the research, data, and consulting hub at PlanOmatic that analyzes and optimizes the property lifecycle for SFR investors, owners and operators. At PlanOlabs, we analyze SFR investors’ current state and use our industry experience to optimize their operational and marketing processes in order to scale and meet their portfolio growth goals. For this particular test case, PlanOlabs tracked more than 70 of our partners’ properties across two markets—Dallas and Houston, Texas. We created a 3D tour for Zillow Rentals for half the properties in each market and compared that to a control group of properties that received a standard professional photo shoot. The test case properties were tracked between May 10th and June 30th.

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