Recruit High Quality, Long Term Tenants without Newspaper Ads

May 28th, 2011

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We recently conducted an experiment that proved us that there is a high interest level from renters wanting to eventually become homeowners through lease to own programs. We posted a classified ad on Phoenix’s craigslist with Lease to Own keyword in the title, and all related keywords such as rent to own, lease options in the contents. We posted another similar ad in the same classified section of craigslist two days later. Those two ads were re-posted every other day.

We surveyed all the respondents who responded either by emails or phone calls. The ratio of prospective tenants who are interested in lease to own program versus rental are eight to one. The outcome is no surprise to those readers who are experienced landlords. It is an American dream to be a homeowner, regardless what economic climate is.

Our simple experiment also shows that putting the right keywords in the “For Rent” classified section easily attracts 10x times traffic of just a regular for rent ad. In addition to higher interest, those inquirers are of higher quality. Someone who can barely afford rent would not bother. Someone who is not interested in longer term commitment would not bother. We got inquiries from those who are dedicated and responsible and dream to own a home. They care about making payments on time and work hard to either repair or maintain their credit. Those are the tenants much preferable by every landlord.

How to capitalize this high quality traffic is a topic that is worthy much discussion. Many clients frequently ask us if the lease to own program suits their individual situation. Keep in mind that as a real estate investor, you should plan to sell your property at certain point. This is why we have structured our Long Term Lease to Own specifically for real estate investors who take a long term view on their investments. It means to expect to sell your property in three to five years at least. During this time, you as a landlord receive higher rental income, and are able to sell the house in a few years when the property value recovers.

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