In Detroit, if your multi-family occupancy rate is less than 78%, you may be falling behind the competition. However, this is a relatively low figure: nationwide, the occupancy rate is above 93%!
If you want to keep up with the rest of the country, you will have to have—on average—all of your units rented about 340 days out of the year; 13 out of 14 units should be occupied at any given time. Given the challenges in keeping multi-family rental properties adequately occupied, what steps can you take to help keep the kinds of tenants that help fuel your property investment portfolio?
Here are some important considerations when trying to increase your multi-family occupancy.
Marketing is often confused with advertising.
Many investors undervalue marketing as a crucial aspect of maintaining a healthy real estate portfolio.
Marketing your rental properties involves more than just putting up ads! You have to make sure the property is catering to the needs of your target demographics. A real estate investment portfolio can include several types of properties aimed at different groups, so it’s important to make sure the needs of each one are met, specifically.
For example, if you are trying to attract and retain millennials, you should make sure you put the kinds of amenities they like in and around your multi-family rental properties. Such perks may include things like an outdoor space for entertaining or proximity to entertainment and dining. On the other hand, if your target demographic is active professionals, your nearness to transportation and easy access to highways can be a big plus!
After your property has been prepared for your target market, then you can start attracting applicants. To get the most bang for your buck when marketing your rental properties, try:
The more tangible you can make the living experience for a potential renter, the more likely they are to come by and check out what you have to offer!
A word of mouth referral carries just as much weight as any Google review! When your tenants share their experiences with friends and family members, they give them a vibrant, realistic perspective that helps them “feel” what it’s like to live there.
You can encourage word of mouth referrals with active involvement across your multi-family rental properties with some simple steps:
Communicate with your tenants to make sure they are happy and that you’re doing everything you can to help keep them that way! While you don’t want to crowd your tenants, you should maintain positive, productive contact with them.
If you’re at the property, don’t just offer a friendly “Hello!” Take the next step and ask about how things are working in the unit, how they like the area, if they have tried a certain restaurant in Detroit, and offer other local hot spots that might be of interest. Be genuine but professional, and try to provide timely solutions to any challenges they face.
Managing your investment portfolio often requires a multi-faceted approach—and this is especially true if you're trying to increase the occupancy rate for a multi-family property. Although you may be able to survive on your own, it would be easier to thrive with the help of an expert Detroit property manager.
When selecting your property partner, focus on a professional in Detroit that's experienced with multi-family units. With effective property management, you gain access to a marketing professional!
A skilled Detroit property manager knows how to keep your multi-family units well-occupied for years. If you're ready to take your investment portfolio to the next level, then you're ready to reach out to JMZ Management! Let us put our skills to work for you to increase your multi-family occupancy rate! Learn more about what we have to offer to multifamily investors.