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.
In this lesson, you will learn how to:
- 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
Lesson 6: Leasing strategies
Real estate managers need to understand how leasing strategies and procedures affect prospects’ decisions to lease, and how those decisions affect the ability to achieve owner’s goals.
In this lesson, you will learn how to:
- Identify the key elements of a leasing plan and their purpose
- Determine key strategies for effective residential leasing such as online and mobile leasing, leasing office competencies, closing strategies, benchmarking, mystery shops, and legal compliance
- Determine key strategies for commercial leasing such as understanding building lease types, leasing plan components, tenant mix and placement, method of space measurement, space planning, and tenant improvements
- Consider prospect qualification criteria to assess the prospect’s overall desirability as a resident or tenant for the property
Lesson 7: Understanding and negotiating the lease
Analyzing, comparing, and negotiating lease terms can maximize the financial outcome for the owner. A real estate manager must be able to understand major lease provisions and clauses and their impact on the property’s financial health.
In this lesson, you will learn how to:
- Identify the basic elements of a lease
- Understand common residential and commercial lease clauses
- Negotiate commercial lease terms to arrive at agreed upon lease terms for the owner and tenant
- Assess commercial lease terms to determine effective rent and the best financial value
- Evaluate options before lease expiration
- Identify best practices for handling lease violations
Lesson 8: Resident and tenant relations
The real estate manager can reduce turnover, maintain occupancy, and meet the owner’s goals by implementing a resident or tenant retention program. A manager must be able to explore resident and tenant retention strategies and techniques for investigating and resolving complaints.
In this lesson, you will learn how to:
- Devise techniques for increasing resident and tenant retention
- Generate a plan for investigating and resolving resident and tenant complaints
