MKL410 - Marketing and Leasing Strategies for Investment Properties

Learning Objectives

Lesson 1: Overview

In terms of broad marketing and leasing activities, the real estate manager is responsible for positioning a property in the market to attract, secure, and retain residents and tenants. In order to develop an effective marketing and leasing plan, knowledge of a property’s characteristics is critical.

In this lesson, you will learn how to:

-  Identify key differences in terms of real estate manager involvement in marketing and leasing activities between residential and commercial properties

-  Describe common residential, commercial, and mixed-use property types, classes, and characteristics

Lesson 2: Economics of marketing and leasing

The real estate manager must be familiar with key factors that influence the supply and demand of investment real estate, the components of the pro forma statement of cash flow, and calculating a property’s value. The real estate manager’s role in marketing and leasing has a direct impact on the value of a property and the ability to achieve the owner’s objectives.

In this lesson, you will learn how to:

-  Identify common ownership goals and objectives

-  Consider how economic conditions impact the marketing and leasing process

-  Determine the impact of marketing and leasing activities on the value of the property

-  Calculate a property’s value using the income capitalization approach

Lesson 3: Market and property analysis

It is important to define and evaluate the market in its current state and estimate how it may change in the future, as well as assess a property’s characteristics and determine its individual strengths and challenges. The real estate manager must perform an accurate market analysis to identify and attract the appropriate target market to the property, increasing the likelihood of signed leases and maximizing value for the owner. It is also necessary to perform an accurate property analysis to recognize how best to position and market the property in the marketplace in order to maximize occupancy and rental income, establish accurate rental rates, and forecast for future changes.

-  Perform a market analysis, including analysis of regional, neighborhood/trade area, and economic factors

-  Determine the economic characteristics of the market area and their effect on the subject property’s

marketing and leasing efforts

-  Calculate key retailer ratios such as profit margins, markdowns, turnover, and store feasibility

-  Conduct a property analysis

Lesson 4: Comparison grid analysis and setting rents

The market analysis and knowledge about the property and its competition helps determine appropriate rental rates. Setting appropriate rental rates attracts prospects to the property and increases the likelihood of securing a lease and meeting the owner’s goals and objectives.

In this lesson, you will learn how to:

-  Complete a comparison grid analysis to determine average market rents

-  Consider additional rent setting strategies

Lesson 5: Marketing strategies and trends

Selecting appropriate marketing strategies and techniques attracts residents and tenants to the building, increases signed leases, increases resident and tenant retention, and maximizes income for the owner. A real estate manager must be able to determine appropriate marketing strategies, plans, and tactics for the property.

In this lesson, you will learn how to:

-  Recommend a marketing plan that aligns with the owner’s goals

-  Identify best practices for selecting and working with brokers

-  Determine the impact of broker commissions

-  Determine appropriate marketing strategies and tactics

-  Outline a social media and reputation management strategy

-  Assess the effectiveness of a marketing plan