By Operations Team.
Costs Can Spike When You Fail to Attract the Right Tenant Demographic
Controlling operational costs—by reducing delinquency, minimizing turnover, and streamlining maintenance—begins with targeted marketing that attracts tenants aligned with your property’s asset class.
Identifying and Reaching Your Ideal Tenant
While fair housing laws prohibit discrimination, strategic marketing and pricing can naturally attract the demographic best suited for your property. Here are key factors to consider:
- What is your property’s asset class?
- What is the most common occupancy per unit across your unit mix?
- What median income range best aligns with tenants suited for your asset class?
- Where should you advertise to attract this demographic?
Your property management company should assist in this analysis. The goal is to market toward the highest tier within your asset class’s demographic to optimize financial performance.
The Value of the Right Tenant Fit
Securing tenants who can comfortably afford your current rental rates—and sustain future increases—results in lower vacancy rates, reduced turnover expenses, and minimal property disruptions. The right tenants not only pay rent on time but also contribute to a stable and thriving community.
While there is no “right” or “wrong” tenant (as long as they uphold lease agreements and respect the property), strategic marketing ensures that you attract residents who enhance long-term cash flow and asset stability.
Leveraging Expertise for Tenant Selection
At Summerfield, our Regional Managers possess in-depth market knowledge, enabling them to guide owners in attracting the most suitable tenants. While owners ultimately choose their property management partners, the effectiveness of tenant selection hinges on the expertise of the management team.
Regardless of your asset class, aligning your tenant base with your property’s positioning is crucial for maximizing ROI. Why not partner with a company that prioritizes strategic tenant placement over simply filling units?
