How to Grow your Property Management business with Google Adwords
Today at Fourandhalf we are talking about using Google Adwords to grow your property management business. Specifically, we want to show you how to get more property management contracts through Pay-per-click. Google Adwords is also known as Google Pay-per-Click, and the way it works is, you bid on specific keywords that you feel will by typed in by the client you’re trying to attract. For example, if you are in Las Vegas and you have a property management business, “Las Vegas property management” would be one of the search terms landlords and investment property owners might use in searches. You want those searches to bring up links to your website and your landing page.
Cost vs. Results
Google Adwords has become more expensive over time, thanks to increased competition. Our experience managing multiple property management campaigns at Fourandhalf has shown us that the average client acquisition cost, which is how much you need to spend before you get one property under management, is between $200 and $500.
On average, with a mature campaign, you can expect to spend about $300 per client with Google Adwords (This isn’t a cost-per-lead, rather, an average cost per new management contract for one property).
We put the average property management contract value at around $3,100. Meaning, we expect you’ll have that client for two to three years and between the management fees and lease-up fees, it places each contract you have at a $3,100 value. So here’s the big question: If a new management contract is worth about $3,100, would you spend $300 to acquire that $3,100 client? Financially and mathematically, the numbers make sense. You can spend about $300 with Google and get a new property. Remember these are averages. Sometimes, your $300 will get you a client with 10 properties and sometimes you’ll find yourself with a few leads that just aren’t right for you.
It is also important to mention variances like: local competition, landing page quality and internal sales process.