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Realtors lead a great (and oftentimes charmed) life for many reasons, but one that has always been near the top is renters. It's rare in the business world to have such a perfectly defined and reachable market right in front of you - a market you know can benefit by becoming homeowners. The image of fish in a barrel comes to mind. And yet, it boggles my mind on how many agents and brokers don't have a plan to convert renters to buyers. These next five words make up a fact that simply can't be ignored in real estate: Today's renters are tomorrow's buyers. That's especially true right now. I recently came across a study from Zillow that says a wave of 5.2 million renters plan to buy homes in the next year. That's nearly a 25 percent boost from the same time last year. And the same study says renters' confidence in real estate is growing faster than homeowners' confidence in real estate. Zillow also reports young adults, low-income and minority renters are all particularly eager to buy in the coming months. So how can you capitalize on renters and turn them into buyers? Here are a few tips: 1. Get smarter about mortgages - When you consider Zillow's study, it makes sense to go after those potential buyers who are on the bubble of being able to afford a home. The key is to get them qualified for a mortgage. So take time to learn the newest programs and partner up with a good mortgage professional. Private mortgage insurance is another way to help renters who can handle larger monthly payments but who don't have enough of a down payment. 2. Consider adding property management to your portfolio - Managing property is an obvious way to have access to a steady and fresh crop of potential buyers. As a property manager, you track lease dates and hit up renters 90 days before their leases are up with emails reminding them their leases are expiring and explain the benefits of buying versus continuing to rent. 3. Create a "rent versus buy" campaign - Develop a database of renters and send out periodic email blasts and traditional mailings to highlight the differences between renting and buying, and how they can potentially save hundreds of dollars each month. Use real-life examples and testimonials from past renters you've helped move into a home. Make sure to also follow up your mailers with phone calls to avoid your message getting lost with all the marketing noise out there. Live conversations can seal the deal. 4. Keep a sense of urgency - Letting renters know that interest rates and property values can rise at any time is also vital. Even though we've seen historically low interest rates lately, explain they're not going to last forever. If you can get renters a little nervous about missing out, you can up the odds they'll make a move. Let me hear from you. How good are you at converting renters to buyers? Could you be better? What areas do you need to work on? Do you have a plan to get better at converting renters to buyers? If not, why not? Bob Corcoran, national speaker and author, is founder of Corcoran Consulting Inc. (800-957-8353), an international consulting and coaching company specializing in performance coaching and implementing sound business systems into residential brokers' existing practices. Contact Bob at "Article at CorcoranCoaching dot com".
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