How to Target Renters to Buy a House as a Loan Officer

 

Loan Officers can target renters to convert into home buyers. Steps to follow on how to convert renters to an owner with a marketing plan for your mortgage business. 

Why Market to Renters

Here are the top 10 reasons to focus on Renters:

1) Rent Increases, just getting too expensive to continue renting

2) Job relocation to a new city or area

3) Wish to move to a different area to be closer to their job, family, friends, school, hospital, etc 

4) Issues with management, neighbor or neighbors; loud neighbor(s) moved in, dogs continuously barking, no parking, etc

5) Need more space, outgrown space with a new addition to the family

6) Divorce or getting married, downsizing or increasing family size

7) Becomes a homebuyer's market, realizing it is the right time to buy and own real estate

8) Maintenance issues, the property always needing maintenance with bugs, water leak, needing updated carpet or paint

9) Need less space, their current residence is too big, downsize in family members

10) Tired of climbing up and down stairs, looking for a single family house 

Reasons Why People Maybe Renting

1) Present or Past Credit issues such as a Bankruptcy, Foreclosure, Collection(s) or Judgement(s)

2) New to the area, job relocation and renting til they find a house to buy

3) Think they may not able to buy a house because of:

  • Lack of a Down payment and closing cost
  • May think it is hard to qualify for a loan
  • Mortgage payment may be too high
  • Can not find a house within their budget

4) Do not have a down payment, thinking it takes 20% or more for the down payment

5) One income and that is all they can afford is their monthly rent

Want to the complete done for your Renter to Owner System, Check out with this link below https://www.mortgagemarketingpros.com/p/renter-to-owner-marketing-system 

Which Renters to Target

Picking which renters to mail is key to your success. Here are some filters to follow when selecting your data.

1) Find apartments or houses/condos/townhouses near your office, people like to have that comfortability of knowing they can drive to your office if need be

2) Apartments/houses/condos/townhouses that have rental payments that can support a mortgage payment within a couple hundred dollars up or down of their rent monthly rent payment

3) Write down the areas you wish to target for your data, need to do your homework on which apartments to mail or which houses/condos/townhouses within a 20 to 25 miles of your office. If you are in a high-density population you may not need to go that far out

You may already know some local apartments to target that have mid to high rental payment. Target those apartments because they should have the credit and income to qualify for a home purchase.

**Statically renters will buy within 12 miles of their residence, they know the area and familiar with the surroundings.

Where to Mail Renters

Do your research on which apartments you wish to mail. Remember you will be mailing renters a postcard or letter every other month or at a minimum once a quarter, so pick 1000 to 2000 addresses. 

1) Chose the ones near your office by doing your search online with sites such as https://www.apartmentguide.comhttps://www.zillow.com/renthttps://www.apartments.comhttps://www.realtor.com/rentals 

2) When researching those apartments, look at these items

  • Monthly rent per unit (studio, 1 bed, 2 bed, 3 bed)
  • take note if you see they are rent-subsidized apartment complexes 
  • Look at staying away from the highest-end rentals, they are paying that higher rent for luxury, but do not count them completely out, make sure to check the reviews. Paying high rent does not always mean the best

3) Check good and bad complaints and reviews that you see on Google Plus reviews, type in "apartments in (your city)" and see what the google reviews are and check out https://www.apartmentratings.com for reviews and do not forget about Yelp reviews

4) Once you have selected your apartment complexes to mail do, drive by at night where most renters are home from work and/or a weekend. The reason to drive by is, to make sure you are not wasting your time, money and effort on mailing to apartments that are going to yield a low response because of vacancies

  • take note of the cars, what clientele live there
  • is the parking area(s) filled with cars, not many cars may mean that the complex is not full
  • drive by on the weekend to see if the parking area(s) are full or not
  • see how the grounds are being kept
  • see if there are garages in the complex and if they are being used as a storage unit (they need a bigger place)
  • if you see a lot of kids playing in the pool area or riding bikes around the complex (need a bigger and safer place to play)
  • see if there are lights on after dark
  • note if the patio or balcony have furniture on them, seeing if there are tenants or what items they are storing

USPS website to verify apartment address https://tools.usps.com/go/ZipLookupAction_input 

What to Mail Renters

There are two types of renters you can target via mail.

  1. Apartment Complexes
  2. Renters renting a house/condo/townhouse

Apartments and Residential properties you can mail either a postcard or a letter, even a combination of both

Just remember; whatever you send, make sure the weight remains within the bulk mailing cost or first class stamp weight. 

How to Mail Renter Postcards

The Pros between a postcard mailing versus a letter mailing

  • Can be more affordable than direct mail
  • Can use a mailing house to design, print and mail the postcards  with a bulk mail permit to save money on postage
  • Depending on where you chose to mail from places like Vista Print or Postcard Mania, can be easy as a click of your mouse to place an order (watching the pricing on this)
  • Depending on the design of the postcard and the size, it will stand out

The cons between a postcard and a letter

  • Not as personalized to the recipient than a letter
  • A letter will look more custom with a real stamp and handwritten address
  • If bulk mail can take up to 3 weeks for the postcard to hit the renter's mailbox
  • Need to rely on the postcard for action, whereas a letter you can make the envelope bulky to peak the recipient's interest

The postcard should be oversized, but not too big where it will not fit in a standard mailbox. The size of the postcard should be no smaller than 4.25" by 5.50", that is a good size where the postcard will stand out and fit in the mailbox.

Use bright colors that stand out, like Yellow, Goldenrod, Pink, Orange or Green and make sure to use an ink that is not too dark where it may blend with the darker color paper or to light where you can not read the print on lighter paper.

Best cardstock paper is Yellow or Goldenrod with black ink. That is one color for the bulk mail house, the more colors you use, the printing cost will be more expensive.

Creating the postcard, make sure to use:

  1. A headline that will grab the attention of the recipient, the reason to mail to them
  2.  Content in the body, need to hit their pain point(s) "Tired of renting knowing you are throwing your money away?" "Do you know where you are going to live when your lease is up?" "Want to own a home?" "Before you sign another year's lease, call me first!"
  3. Call to Action, need to direct them to your 24 hour pre-recorded Renter's hotline and/or a landing page where they can download the eBook instantly

Look at teaming up with an Insurance Broker, Life Insurance Broker or a Real Estate Agent to help split the cost of the mailings. Insurance brokers work best because Renter's may be required to have Renter's insurance for the residence or apartment they are renting.

Also, look at obtaining your own permit number for bulking mailing. Here is a link to the USPS on Bulk Permit https://pe.usps.com/businessmail101?ViewName=PermitApplication 

 How to Mail Renter Letters

How to address the outside of the white self-adhesive number 10 envelope

  • Add a real stamp, not a metered one
  • Purchase a stamp from a place like Vista Print that you can stamp the top left corner of the envelope with your Name or Company and office address for the return
  • Handwrite the mailing address
  • For the name of the recipient can use (can get creative here)
    - Dear Renter
    - Dear Future Homeowner
    - Future Homeowner
    - Homeowner to Be
    - Mr. and Mrs. Homeowner
    - Dear Tax Payer
    - Dear Feed Up
    - Tired of Renting
    - Dear Just Tired
  • Then the address of the subject property

When to Mail Renters

If you can budget for it, mail out every month to an apartment complex(es) and one to two times to the residential renters. If you can not budget for that many mail outs, think about every other month or at least once a quarter.

Statistics show that April/May and September/October have the highest turnover in apartment renters. So you will need to mail a postcard or letter 60 days before those months if you chose to mail out less than every other month.

For those renting residential properties, mail a letter at the end of March and focus on the benefits of owning a house since that is around tax season. The postcard mail out at the beginning September to emphasis owing a home to celebrate the holidays in. 

**Articles to see the research**

https://www.cnbc.com/2018/02/02/winter-may-be-the-best-time-to-rent-an-apartment.html 

https://www.renthop.com/study/national/seasonality-2016.html 

https://blog.rent.com/best-time-year-rent-apartment/ 

If You Need Our Assistance with a fully done for your Renter System

Check out https://www.mortgagemarketingpros.com/p/renter-to-owner-marketing-system to have instant access to all the steps, videos and handouts to deploy and implement a successful renter to owner campaign.

 

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