NUM­BERS GAME: SEG­MENT­ING LAND­LORDS

In his latest book Num­bers Game, Ben White pro­files four dif­fer­ent types of land­lords that have very dif­fer­ent needs.

Elite Property Manager - - Contents - Ben White

APMASPHERE HAS worked with hun­dreds of agen­cies over the last eight years, and we’ve dis­tilled our learn­ings into a se­ries of books. Num­bers Game is the third and latest book in this se­ries in which we ex­plore lessons from agen­cies that have achieved great suc­cess, show­ing how to de­fine and pur­sue plans that are more ag­gres­sive than the lev­els tra­di­tion­ally thought pos­si­ble. In Num­bers Game we in­tro­duce pow­er­ful con­sumer re­search to pro­file four core landlord seg­ments and the five chan­nels of growth.

In this ar­ti­cle we’ll be touch­ing on these four landlord seg­ments, which form our frame­work for bet­ter un­der­stand­ing the minds of land­lords. This frame­work in­cludes both quan­ti­ta­tive and qual­i­ta­tive re­search, con­ducted by a pro­fes­sional mar­ket re­search firm.

By analysing the re­sults of this pro­fes­sional re­search, we’ve de­vel­oped a good un­der­stand­ing of the dif­fer­ent types, or seg­ments, of land­lords. In essence, there are two di­men­sions to how we de­fine the landlord seg­ments. This is set out in the fig­ure on the left.

Each of the four landlord types have dif­fer­ent pref­er­ences, per­cep­tions, mo­ti­va­tors and hy­giene fac­tors. A brief sum­mary of the seg­ments is set out here:

SI­LENT MA­JOR­ITY – 38 PER CENT OF

LAND­LORDS

The si­lent ma­jor­ity have a broadly favourable view of the in­dus­try - they don’t mi­cro-man­age the prop­erty man­ager, be­cause they as­sume that things are be­ing done well. They are the most likely to have only a sin­gle in­vest­ment prop­erty, and if they have more than one they are the most likely to use the same prop­erty man­ager for both.

OUTSOURCER – 21 PER CENT OF LAND­LORDS

This seg­ment is the least in­ter­ested in hav­ing a close re­la­tion­ship with prop­erty man­agers. They are the least likely to in­sist on see­ing the photos from a rou­tine in­spec­tion or even con­sider that a nec­es­sary ser­vice. De­spite this, as a whole out­sourcers are less sat­is­fied with the ser­vice re­ceived than the si­lent ma­jor­ity. They have the high­est ex­pec­ta­tions yet are the least en­gaged of all seg­ments.

PRI­VATE CLIENT– 13 PER CENT OF LAND­LORDS

This seg­ment is the most likely to own a num­ber of in­vest­ment prop­er­ties. One hun­dred per cent of the pri­vate client seg­ment agrees with the state­ment “I need a high level of at­ten­tion; I ex­pect my prop­erty man­ager to con­tact me with reg­u­lar up­dates, con­sult with me on ev­ery is­sue and no­tify me im­me­di­ately if there is any is­sue.” They seek to have a high level of ser­vice, with a high level of cus­tomi­sa­tion for the sit­u­a­tion. Ul­ti­mately, they will find the prop­erty man­ager that suits them, which leads to sat­is­fac­tion, and they are pre­pared to pay more for the ser­vice that suits them too.

AT RISK – 28 PER CENT OF LAND­LORDS

The At Risk seg­ment is best de­scribed as cyn­i­cal of our in­dus­try. Land­lords in this seg­ment have of­ten had a bad ex­pe­ri­ence with a poor-qual­ity prop­erty man­ager in the past and, as a re­sult, the whole in­dus­try has be­come tar­nished. Be­cause they have a low level of trust but a high ex­pec­ta­tion, they will re­vert to mi­cro-manag­ing their prop­erty man­ager. The end re­sult is of­ten an un­happy re­la­tion­ship. Forty per cent of At Risk land­lords dis­agree with the state­ment that their prop­erty man­agers are proac­tive, com­pared to 20 per cent as a whole. Even worse, 15 per cent think we are un­trust­wor­thy, com­pared to only 7 per cent over­all. The At Risk landlord may well be a mi­cro-man­ager and their at­ti­tude may present is­sues, but their be­hav­iour is ra­tio­nal based on their pre­vi­ous ex­pe­ri­ences.

For more on the four landlord seg­ments, in­clud­ing help choos­ing which seg­ment your agency should tar­get, tips on iden­ti­fy­ing seg­ments and thoughts on how to best mar­ket to each seg­ment, get a copy of Num­bers Game to­day - free as an ebook and avail­able in paper­back or on the Kin­dle store. For more in­for­ma­tion visit to apmasphere.com/books-epm.

EACH OF THE FOUR LANDLORD TYPES HAVE DIF­FER­ENT PREF­ER­ENCES, PER­CEP­TIONS, MO­TI­VA­TORS AND HY­GIENE FAC­TORS.

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