In any venture, it's important to consistently review your strategy and product or service to ensure that your business remains profitable and develops with changing markets and demand.
This is no different in the property sector and looking at the fundamental five Ps of marketing are a great way to identify potential gaps in your investment plan.
Product
This is obviously the product or service on offer and in this case, it's your buy-to-let properties. But more than that, it's the service you provide as a landlord too.
What type of rental property do you offer your tenants and is there an urgent market need? To be successful in business, you need to offer a solution to a problem. In a property market where there is strong tenant demand, rental properties do just that, but how do you set your offering apart? Why should people want to rent your properties and how do you treat your tenants?
If you're hoping to grow your business, then evaluating your product or service will help you to determine whether you are following the right property investment strategy.
Place
In property investment, place refers to the location of and the amenities surrounding your rental properties. Not only should you consider whether this is somewhere that prospective tenants will be happy to live, but what rents and level of capital appreciation can you achieve in the area?
Growing your portfolio may require you to research alternative locations and different types of buy-to-let property. Is there a rise in tenant demand for family homes in a specific area or an increase in young professionals looking for shared accommodation? Always bear in mind additional costs of running a portfolio that is too far away from where you live to manage yourself.
Promotion
This refers to how you market your products and services. To outperform competitors in the buy-to-let market, it is essential that landlords ensure their rental rooms and properties are easy to find by the kind of tenants they are targeting. Make it easy for your customers to find you and you could minimise potential void periods.
As well as traditional advertising channels in the property world, such as SpareRoom or RightMove, don't disregard old fashioned newspaper adverts. Utilise free resources as much as possible too like Gumtree or social media platforms.
Think about where your potential tenants 'hang out' and spend time. If you invest in student accommodation, then university noticeboards and websites are a must. If you cater for young professionals, then big employers in the area may have an advertising facility.
Remember to consider how much you are willing to spend on promotion for the right tenant.
Price
There is a huge demand for rental properties in the UK, but this does not mean that landlords should take advantage and charge extortionate rents. Price is all about matching what you charge to what your target audience is willing to pay - offering value for money could actually enhance your profile and reputation as a landlord.
Be sure to understand what your competitors are charging, the cost to you for running the business and what you can reasonably charge for your product. The price should reflect the standard of product and level of service. Tenants will be willing to pay a premium for a property that suits their needs, which is why on-going market research is key.
People
Property is first and foremost a people business. You will only get offered the best properties and keep the best tenants if you operate with integrity. Relationship building and networking should therefore be a focus for property investors who are planning to grow their buy-to-let businesses.
It may also be the case that you'll need additional support to manage your portfolio at some point in the future. Over time, you would have established certain processes and values that you adhere to in the daily running of your property business and require any staff you take on to do the same.
Being successful in property means meeting the right people, working with the right people and understanding the people you want to sell your product or service to.
So, if you want to grow your business, then the five Ps of marketing should be considered regularly to help you think about the areas you need to focus on and develop.
