Are you planning to establish an apartment business anytime soon? There are numerous benefits of entering the real estate industry, and one of them is setting up your own apartment business. But before you begin buying cement for the construction of your apartment building, you first need an apartment marketing plan. To help you in formulating a marketing plan, here are some examples (in PDF format) to guide you.
Residential real estate has always been a profitable industry. There are always people (students, professionals, groups of friends, and families) looking for a place to stay, either for a weeks, a few months, or a few years. But recent trends have shown that short-term contracts are more beneficial to apartment owners. You may also see simple business plan examples.
If you have the funds, and you are looking at options to invest your hard-earned money. There is really no other option but to invest in an apartment business.
Even if you don’t have the necessary funds, you can always get a loan from banks and other financial institutions to commence your business.
Don’t spend all your funds for leisure, but invest them in profitable businesses instead, specifically in an apartment business.
To better help you decide, here are some reasons why you should invest in an apartment business:
Let’s be honest, investing in an apartment business is very costly. A few hundred dollars simply won’t suffice. This is true especially if you are constructing the apartment building from scratch. You don’t only have to spend for raw materials, you also need to spend for worker wages and business permits and other government requirements. You may also like risk plan examples.
There is always money (and great chances of risk) involved in any type of investment. That is unfortunately the essence of investment, pouring in money at a product or service and getting that money back (with interest) after a period of time. There is no need to worry if you are losing a big amount at the beginning of your investment. You may also check out work plan examples.
As long as you have confidence in the product or service you are investing, you can always get your money back plus interest.
Going back to investing in an apartment business, the big pay-off (or break even) occurs a few years after you have established your apartment. Once the apartment is fully operational, you still need the revenues of the rent to pay off the initial expenses. Once the initial expenses have been paid off, that is where you will start earning and receiving the full amount of the revenues. You might be interested in transition plan examples.
Depending on the area of the apartment you are renting out, the average rental price for an apartment in the United States each month is $1,200. Even if you set a lower price of $1,000 per month, in 12 months you can earn as much as $12,000. And if you have two or more apartments to rent out, you can earn so much more. You may also see sales plan examples.
Did you ever plan of having your own business and you won’t have to work eight hours a day and six times a week? No, this is not a scam, this is having your own apartment business. Life is so much better when you are your own boss. But compared to other entrepreneurial ventures where business owners still need to oversee the entire operations for 24/7, apartment owners just need to sit back, relax, and wait for the money come in. You may also like quality plan examples.
But it doesn’t mean that when you spend a big amount, you will automatically earn millions. You still need to work twice as hard, but the amount of work will be only limited at the beginning of your investment.
Remember that you won’t be earning from your entire revenue stream once the apartment has finished construction or renovation, you still need to wait a few months or a few years depending on the area of the apartment and the initial amount you invested. You may also check out daily plan examples.
One of the benefits of having your own apartment business is that you won’t have to spend for the salaries of full-time employees. The only salary that you will be giving out is for the workers who will be involved in the construction of the apartment, in which their salaries are already set aside in your initial investment. You may also see advertising plan examples.
The next payment will be for repairs or renovations, but as long as the apartment is well-maintained and you include fees in the apartment rules and guidelines if tenants incur damages, then you will be spending less for renovations and repairs.
Think of the revenues that you will be earning if you won’t have to spend for employee salaries. You can even avoid hiring an administrative personnel to resolve tenant concerns or issues (especially for rental payment) as you can do those tasks by yourself. You may also like event plan examples.
Since you are not regularly spending for employee salaries, raw materials, and supplier or distributor fees, then the only expense you have is spending for renovations and repairs. Your initial investment might be enormous, but you can gain more in the long run as you will only have to spend for renovations. You may also see implementation plan examples.
The good thing is that you won’t have to spend often for renovations. As long as you use quality materials when constructing the apartment, you won’t need to see the need to spend so much on reconditioning.
Here are the essential components of a marketing plan that you should include when you will be making your own apartment marketing plan:
Market research serves as the backbone of your marketing plan. The market research will help you identify consumer industry buying habits, market size, market growth or decline, and other current trends. Market research involves extensive research as you will be gathering vital industry information, and you will be using that information the entire research.
The target market basically identifies your business’s most likely buyers. Demographics play a key role in identifying your target market (i.e., age, gender, product preference, annual income, number of residents in household, weight, height, etc.), and you choose your target market by identifying which segmentation in the demographics. You may also see action plan examples.
Market positioning refers to the ability to influence consumer perception regarding a brand or product. The main objective of market positioning is to establish the image or identity of a brand or product that is easily identified by a market segmentation.
Market positioning does not only equate to how your customers will perceive your product after making a purchase, but how they perceive the product even before making a purchase. It will be advantageous for your business if buyers have a negative perception of you product first rather than having a negative perception after purchasing the product. You may also like financial plan examples.
Competitive analysis refers to the analysis of competitors and the marketing methods they are using in their respective organizations. Obtaining information on the marketing methods used by competitors is difficult, but you can always refer to their online portfolio (website, social media, blogs, news, etc.) to gather important.
One strategy that you may also want to utilize is to hire “mystery customers” and send them out to your competitors. Although a risky strategy, it is very effective if used the right way. The mystery customer will be tasked to ask numerous questions regarding product and company information on the competitors, but he or she will not indicate to the competitors he was hired to do such tasks. You might be interested in evaluation plan examples.
A marketing plan is never complete if a budget is not included. List down all the costs you will incur for your marketing plan activities. Take note that marketing activities do not only include advertising and promotion costs but also costs relating to research and data gathering, although the bulk of your budget will be spent for advertising and promotion.
Take advantage of social media advertising as it is mostly free yet very effective in reaching potential clients. Most companies, either small start-up enterprises or large corporations, have ditched traditional advertising methods (Elegant posters, attractive billboards, and other print ads) and now have shifted to social media.
We hope you found this article to be insightful and beneficial when you will be making your own apartment marketing plan. Make sure to incorporate the essential components of a marketing plan (market research, positioning, competitive analysis, market strategy, budget, metrics) in the formulation and creation of your apartment marketing plan.