As we explained recently in this article, the net benefit of upgraded listings is greater than their cost, meaning they actually save owners money rather than costing it.
Well, we’ve now sat down with RealEstate.com.au who have painstakingly reviewed our listing data and composited a beautiful 30 page report quantifying EXACTLY how much that net benefit equates to, and the numbers are staggering. Even I was surprised – EVERY onsite manager needs to read this article. Lets break it down!
What is a Feature Listing
- Feature listings appear ahead of Standard listings
- Interactive photo carousel highlights the best features
- Receive 1.6x more Average Views than a Standard listing.
- Receive 1.6x more Email Enquiries than a Standard listing.
For this case study – REA took a collection of our STANDARD rental listings – chosen at random, and compared them to an identically priced and appointed feature listing in the same location posted on the same day. Here are the results – brace yourself…
Brisbane CBD (Upgrade Cost: $162)
First stop is Brisbane CBD, this is our capital, so what better place to start?
Based on similar 2 Bedroom, 2 Bathroom properties in Brisbane City:
- The Feature property received 138% more average views per day
- And was leased 29 days faster
- Based on the rent of the Feature Property of $560 per week, the Feature listing minimised the lost of rental income and saw an extra $2,320 put back into the landlord’s pocket.
“This landlord lost $2158 in potential rent (after expenses) because they didn’t upgrade.“
Wow, that’s a huge loss… Perhaps that was just a freak incident? So we ran the data again, this time in Teneriffe.
Teneriffe (Upgrade Cost: $162).
Based on similar 2 Bedroom, 2 Bathroom properties in Teneriffe:
- The Feature property received 321% more average views per day
- And was leased 22 days faster
- Based on the rent of the Feature Property of $470 per week, the Feature listing minimised the lost of rental income and saw an extra $1,477 put back into the landlord’s pocket.
This owner lost over $1300 while trying to save $162.
Well that’s all good and well for the inner city – but what about in the outer suburbs? We ran the data again, this time in Northlakes
North Lakes (Upgrade Cost: $124.20)
Based on similar 3 Bedroom, 2 Bathroom properties in North Lakes:
- The Feature property received 177% more average views per day
- And was leased 7 days faster
- Based on the rent of the Feature Property of $350 per week, the Feature listing minimised the lost of rental income and saw an extra $350 put back into the landlord’s pocket.
“After the upgrade cost, the owner would have been $225 better off.”
Sure, it’s not thousands like the inner city ones, but that’s still a couple of weeks worth of fuel in their car, groceries for their family, that they now have to go without.
Well that’s pretty definitive for Brisbane, how about the Gold Coast?
Ashmore (Upgrade Cost $125.55)
Based on similar 3 Bedroom, 2 Bathroom properties in Ashmore:
- The Feature property received 37% more average views per day
- And was leased 33 days faster
- Based on the rent of the Feature Property of $550 per week, the Feature listing minimised the lost of rental income and saw an extra $2,592 put back into the landlord’s pocket.
Wow… just wow…
This owner lost two and a half thousand dollars trying to save a hundred and twenty.
This is utter lunacy, it probably didn’t help that the manager used a blurred and crooked picture of an old cupboard door shot on a smart phone as their main marketing image either. They clearly haven’t been reading our articles about marketing like professionals.
Newstead (Upgrade Cost: $162)
Based on similar 2 Bedroom, 2 Bathroom properties in Newstead:
- The Feature property received 150% more average views per day
- And was leased 38 days faster
- Based on the rent of the Feature Property of $485 per week, the Feature listing minimised the lost of rental income and saw an extra $2,632 put back into the landlord’s pocket.
This is no small number. Again, this is serious money being thrown away by owners/managers to save a few pennies. It doesn’t make any sense to be doing this!
I think the data so far speaks volumes: No matter what your location, or the demand in your market, It is financially reckless NOT to upgrade owner’s rental listings, particularly if they have sat for longer than a week.
Join me back here again next week and we’ll explore the outcomes of higher level upgrades.