Farming an apartment complex in search of buyers can be very profitable if you choose the right complex and market yourself properly. For many, renting an apartment is only a short term solution until they are able to buy a house of their own and you can position yourself to be the agent who helps them out of the rental market and into that first real home.
Many agents do not like to farm these areas and the ones who do seem to only make a half-hearted effort and then move on to others things. Both of these views can be proven wrong if you work the right complex. The first thing you will need to do is select the right one, and here are some of the criteria you will need to consider when making your selection.
The size of the complex? You will want a place that is big enough to produce enough buyers to make your effort worthwhile, but not so big that you are unable to manage it. A complex with between three hundred to five hundred units fits these criteria nicely.
Is the rent here at the mid-range to higher end of the local rental market? The answer to this question should be a yes. People that rent at the bottom end of the market are less likely to be able to afford to buy a house of their own, and, as their financial situation improves, they are more likely to move up to a better rental before moving into a house or condo.
Is there a playground or a pool? Look for signs of families living there since a growing family might be the most likely of all renters to need a house of their own. Oftentimes, these people are either currently looking for a house, saving up for their down payment, or, at least, planning to buy at some point in the future.
Is the complex in an area of single-family homes? Many people rent in an area that is conveniently located to the places they spend the most time such as their job, school, family, and friends. For them, staying in the same area might be seen as a plus.
Can you walk it? The importance of this question is determined by how you intend to market to your new farm. For example, if you intend to only use the U.S. Post Office to deliver your marketing materials, the question holds little importance. If, however, you intend to hand deliver some of your materials, you need to make sure there is free access to the buildings. Give some thought to this last idea. If you intend to send out two postcard type mailings a month, you could cut your postage costs in half by mailing one of them and hand delivering a door hanger for the second. This last has the advantage that you might meet and get to know some of the residents who will probably be happy to fill you in on what they think about living there.
You might feel there is other information to consider, but this list will get you started on choosing the right apartment complex to find potential buyers in need of a real estate agent. Remember, for any farming effort to pay off, you need to be consistent in your message and long-term in your effort, otherwise, you will be wasting your money and your time. If you are willing to do it right though, the rewards can be incredible.
by Aldar Nagy