For single-family rental (SFR) investors, owners, and operators, running an efficient operation is crucial when acquiring, renovating and leasing large portfolios of homes across the country. Acquiring large portfolios of SFR properties has become commonplace in today’s red-hot market, but in order to survive and turn a profit, SFR investors must analyze their operational processes and workflows to ensure they are utilizing their resources effectively and efficiently throughout the entire property lifecycle.
We recently launched PlanOlabs, a research, data, and consulting hub at PlanOmatic that analyzes and optimizes the property lifecycle for SFR investors, including acquisition, renovation, and leasing. At PlanOlabs, we analyze SFR investors’ current workflows and identify ways in which they can optimize operational efficiencies and processes to help scale and grow their portfolios. Here are five ways SFR investors can improve their processes to meet acquisition and portfolio growth goals.
1. Utilize 3D virtual tours for marketing and operations
A 3D virtual tour is like a buy-one-get-one-free deal. It’s an easy way to ensure your SFR properties stand out against the competition when they are marketed to consumers, and it’s a great way for your operations team to get dimensions of the property to better inform renovation decisions. 3D tours also allow future residents to explore the home in a real-life way and get a clear visualization of the space, creating more qualified leads. At PlanOmatic, we have captured and created thousands of 3D tours on behalf of SFR investors and according to our clients, 3D tours have resulted not only in more views per property, but in fewer lease opt-outs because the leads are more qualified.
If you opt to use a 3D tour to market a SFR property, don’t forget to use a redirect image in your photo syndication to send traffic back to your website. Zillow Rentals does not currently remove a branded photo from the syndication feed, so you might choose to include a redirect image that says something like “Check out our website for more 3D tours.” Include this as the second image, or perhaps as the third photo if you have a floor plan image in the second spot already. It’s free branding, and we have found this to be a very effective tactic.
2. Market a pre-lease property with a professional photo
The first impression of a property is key. Future residents browse through dozens of properties before deciding, and if the first photo they see is dark or blurry they will likely skip it and keep searching. Zillow does not sort by “Date of New Photos Added,” it only sorts by “Date Listed” so you have one chance to appear as the most recently added property and to make the best possible first impression.
3. Automate the process for marketing and operational assets
Consider automating the process for all your property marketing and operational assets, including the ordering and uploading of property photos, floor plans and 3D virtual tours. By automating the process, you can increase efficiency throughout the entire property lifecycle and easily scale your marketing efforts to keep up with your portfolio growth.
4. Conduct a 3D virtual inspection at move-out
By conducting a 3D virtual inspection upon a resident’s move-out, you can accomplish a couple of things. First, it gives the resident an opportunity to clean up and fix things as needed to secure their entire security deposit. Secondly, your operations team will be able to scale on demand in addition to retaining the 3D scan to determine the renovation scope and turn estimate time and track appliance upgrade schedules.
5. Hold the field team accountable until a property is “vacant unrented ready”
When is a SFR property truly ready for move-in? When should it be “available” or “vacant unrented ready”? When we analyze workflow processes for our SFR clients, we often see issues arise during the property hand-off between the field team and the marketing team. To help improve the process, try measuring the defects, or the number of times the operations team hands the property off to marketing when it isn’t actually ready. If this is happening on a regular basis, consider holding them accountable to ensure every property meets the appropriate requirements before it’s considered “vacant unrented ready.”
You might also consider using a third-party company to verify the property condition before it is officially sent to the marketing team. At PlanOmatic, we offer a Property Insights package which includes a Property Condition Report and 3D Inspection Tour for properties across the nation that is delivered within 48 hours after an order is placed. With our Property Condition Report, you can learn the condition of a property, including its appliances, and scope the level of renovations and repairs. Reference photos are provided to access a property’s current state, including a customizable 600-point inspection checklist and appliance inventory complete with item serial numbers.
Kori Covrigaru is the Co-Founder and CEO of PlanOmatic, the biggest and fastest provider of Property Insights and marketing services for the single-family rental industry nationwide. With a national network of hundreds of contractors and 40 employees, Covrigaru has met the moment with the unique value proposition PlanOmatic offers through technology combined with property insights to support their clients’ goals.
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