Over the past few years, the U.S. real estate market has experienced record-setting highs. This growth (and subsequently high costs of buying) have created many investment opportunities for homeowners looking to invest in the Los Angeles real estate market, and turn homes into full or part-time rental properties. Home prices in California rose by an astounding 30% between February 2020 and June 2021, and although Southern California saw a slowdown in November, the area still increased by 16% from the previous year. Although it’s tough to accurately forecast how the real estate market will pan out in the near future, factors such as rising mortgage rates and potential rental regulations could prompt a deceleration of home prices in Los Angeles and Southern California in the upcoming year, forcing some would-be home buyers to rent.
In order to effectively market your rental properties in LA, it’s important to consider which strategies will be most effective to get out in front of the competition. If you’re looking to market your rental properties in Los Angeles, the following is what you need to know about LA homes for sale and the city’s real estate market.
Consider a target market
The LA real estate market is one of the most competitive in the US. Like any business model, it’s essential that you identify your target customer—in this case, your tenants—and plan your marketing strategy accordingly. Establishing a target market allows you to refine your focus to better understand the neighborhoods and communities in which you invest. You’ll want to know who's moving in and moving out and what potential renters value in a neighborhood. By targeting your marketing strategy, you're more likely to reach potential tenants and generate the kind of business you want from your rental properties.
Use social media to your advantage
There are a number of ways to freely market and promote your rental properties online, and it’s important that you take advantage of the variety of platforms available to those looking for LA homes for sale and for rent. In addition to these platforms, it’s wise to use social media to reach your audience and generate engagement. Over 70% of Americans use some type of social media, making it a great place to generate widespread engagement with your online listing. While you can market your properties on social media for free, you may consider using paid online advertising to target a specific audience.
Use professional photographs of your rental property
Credit: Surf WorldProfessional photography of your rental property can boost audience interest and allow prospective renters to view your property listings at their convenience. High-quality photographs of your property are important because they’re likely to be the first interaction potential renters have with your property. In many ways, your photographs make or break a renter’s initial interest in your property online. While you don’t have to hire a professional photographer, poorly taken or edited photos could be a turn-off for some potential renters.
If you’re going to take the photographs yourself, it’s key that you focus on the most attractive features of your house, use a wide lens to provide overall context and take advantage of multiple angles when photographing a room. There’s plenty of sunshine in the Los Angeles area, so use natural light to highlight the best features of your space. Use about 15-20 photographs in your listing to give potential tenants a good overall picture of the property.
Complement your photography with written descriptions
In addition to high-quality photographs, each listing needs clear, complimentary content to describe your rental properties. Your written copy, when coupled with the photographs, can bring the story of your property into focus for prospective tenants. In most cases, you’ll want to at least include a headline and a brief description. Headlines should be short, but it’s important that they include essential information such as rental price, number of bedrooms and bathrooms, and location. You may even add a specific selling point to further entice your audience into learning more about the property.
In addition to your headline, you’ll want to include a concise, yet accurate summary of your property. Be sure to highlight the amenities and features a prospective tenant would find useful or unique. Include any and all policies or features that might narrow a tenant’s search, such as a pet policy, parking, or access to public services. The LA real estate market is competitive, and your ability to provide compelling descriptions could be just the thing to set you apart.
Sell the community as a way of selling your property
Community values are critical to prospective tenants and can be an influential part of your marketing strategy. Think about the services or other amenities that might make a particular neighborhood appealing to your target audience. It’s also a good idea to consider your role in the community, as well. If you’re already a member of the community you’re renting in, then you understand the atmosphere and values present. If you aren’t, learn about the neighborhood or community and include that information in your online listing. When you demonstrate interest and knowledge of the surrounding community, you’re more likely to give prospective renters a great customer service experience, and to help them set accurate expectations for their new home.
Interested in buying and renting Los Angeles real estate?
If you’re ready to learn more about buying and marketing rental properties in Los Angeles, or are simply interested in seeing the best LA homes for sale or are interested in a consultation, reach out to trusted local agents at The Passman Group.