The Future of Rental Listings
How to Stay Ahead of the Competition
By Kori Covrigaru
As a single-family rental (SFR) investor, you have likely seen an increase in competition. The demand for SFRs is up, but with demand up, more investors are adding SFRs to their portfolios. As a result, investors need a way for their listings to stand out.
According to Realtor.com’s 2022 Housing Marketing Prediction Report, there will be a higher demand for rentals. In addition, the ever-increasing competition in homebuying makes an SFR look even more appealing, especially to those who cannot compete with the all-cash, quick-close, over-asking offers that home sellers receive in today’s environment.
The report also noted that renters are looking for larger units. With more remote workers and families pursuing rental homes, SFRs are having a moment. Today’s renter wants outdoor space, storage, a work-from-home (WFH) area, and enough room for their families. According to the CoreLogic Single-Family Rent Index, SFR growth has consistently grown for the past ten years and increased by 12.6% in 2022.
With the increase in demand for SFRs and expected rent growth, more property investors are focusing on this market. So, how do you maximize your investment and ensure your rental properties spend less time sitting on the market?
3D Tours
Today’s renter is tech-savvy and wants convenience. They crave online payment options, amenities, and digital communication options. With 3D Tours, you give a great first impression to this type of renter.
3D Tours show that you value a potential renter’s time. In addition, they can make more informed decisions because you provided more information up-front.
PlanOmatic recently ran a pilot program with a national property investor to test the effectiveness of 3D Tours on their listings.
These were the results (averaged across markets):
• Decreased days on the market by 15.25 days
• Increased listing impressions by 34%
• Increased leads by 6.5%
Sites like Zillow, Redfin, and Apartments.com spotlight listings with 3D tours with a special icon, highlighting these listings over standard listings with photos only.
When you add a 3D Tour to your listing, you show potential renters the essential characteristics of your brand.
• You understand their time is valuable, so you offer a time-efficient option to tour the home.
• You are tech-savvy and may offer the convenience of online payments, maintenance ticket submissions, and simple online application and lease signing options.
• You are professional, and your renters will not experience the landlord-tenant relationship where personal feelings come into play.
Add Floor Plans to Your Listings
The typical SFR renter is pursuing a lifestyle where they do not want to maintain a home, but they do want all of the benefits of one: outdoor space, room to grow, good school district, and a WFH area. This renter has a high education, promising career, and roots. They stay in their rental long-term, which is excellent for investors. With a long-term tenant, investors spend less money on turnover, renovations, and marketing.
Dori Nolan, SVP of national client services at Berkadia, was quoted by GlobeSt.com as saying, “These renters are looking for a home feel. They want flexibility, and they do not want the burden of owning a home. The turnover of these homes is less prominent as well. I think what we have found is it’s less than 50%. They are living in these build-for-rent homes longer. Apartment renters tend to jump around more than single-family renters.”
Because this type of renter is looking for a long-term home, they need more information up-front. So, be sure to add floor plans to your rental listings. Floor plans allow renters to visualize their family in the home and how to lay out their new home.
When you work with PlanOmatic, you get floor plans, photography, and 3D tours all done in just one appointment.
The PlanOmatic process is efficient:
• Our PlanOtechs measure each space in the home.
• Then, they photograph each area for the 3D tour and rental photography.
• Assets are delivered within 48 hours. You can receive them via email or with a straightforward API that automates the entire process.
How to Capture Today’s Single Family Renter’s Attention
Single-family renters are different from multi-family renters. They want a long-term commitment (without the stress of buying), flexible spaces, convenient technology, and up-front information.
Make it easy for potential renters to decide on your SFR with 3D walking tours and floor plans.
Visit www.PlanOmatic.com/our-services/pricing/ to learn about our all-in-one photography services.
