Janet Schlarbaum Side Effects of the Current Economy By Michael K Carroll

One of the side effects of the current economy and number of foreclosures is an increase in the percentage of people relying on leased housing. As families lose their homes they have to live somewhere and rentals are often the only choice available to someone with a foreclosure on their credit history. Add on to the fact that some estimates show that in California alone twenty percent of foreclosed properties were rental properties all adds up to the fact that there are a flood of people looking to rent rather than own. This would seem to be great news for owners of income property, but with the new renters there are also the fact that many homes being sold by financiers are being purchased by investors who have every intent of turning that property into an incoming producing property. The market just got more crowded and owners are now faced with increased competition for tenants. Move in Specials, first month free, decreasing rents and no security deposit are all common techniques to try and make sure your property stands out amongst all the others, yet they are not always the best solutions. Instead of jumping to a decrease in income and security, other tactics should be looked at. Reducing your income, which is exactly what most these tactics do, make sure you have exhausted all other avenues first.

Housing is an emotional purchase and any marketer will tell you people make decisions based on emotion. First and foremost you need to make your property as inviting as possible. It goes without saying that you need to make the outside look as good as possible, but take a look inside. Any real estate expert will tell you that a staged home is easier to sell than an empty one, the reason is it is easier for the prospective buyer, or in the case of income property tenants, to see themselves in the home if it has some kind of furniture in it. Staging companies are great resources and might even offer their services for a percentage of the lease. Property Managers or owners of a number of units may find it more profitable to buy a room or two worth of furniture and then store it for when you need it. The cost of furniture and rental space is probably less than the income you would lose if your vacancy extends into more than a couple months.

You can have the home decorated the nicest and have the best sign out front but if people are not driving by they are useless. Open up a classified add and you will see an overwhelming number of ads all saying the same thing ”Charming space with so many beds and so many baths in such and such neighborhood”, what does that tell you. If you own properties and do not have a website what are you waiting for. URL registration can easily be found for under twelve dollars a year, some sites even offer basic hosting with the URL or at the vary least hosting plans are very affordable. If you are not savvy in the ways of HTML there are companies that can build a website for you. Instead of just putting the standard verbiage you can now direct potential tenants to your website where they can view pictures, get community information and download application materials. This also gets the potential prospect imagining themselves in the home before they even view it. How cool is it if you show the place, getting an application right then and there.

Real Estate agents who are looking to sell a house often will hold an open house, a time for people to walk in and view the house. Yet this tactic is not as popular in the rental house, and is a missed opportunity to save time and to get your property rented. Set aside a Saturday or Sunday, advertise it in all of your normal outlets, making sure you set clear start and end times, and then see what happens. While sitting open houses for my wife I was surprised the number of time I was asked if the owner would consider renting the home. It is easier to get people to come to you one day as opposed to driving to the location every time someone wants to see it. Some marketing strategies save you money and some save time, open houses could save both. The day of put signs up directing people to your property, make sure you have all the necessary forms that potential tenants will need to apply for a lease.

Unfortunately not all advertising is free, and sometimes you need to pay to place an ad. Advertising is an investment and as such you need to make sure the money your spending is well spent. If you are not asking everyone who calls, to inquire about your properties, how they found out about the home; if you take only one tip and use it make this the one. Keep a tally of calls that come in, calls that lead to showings and calls that lead to signed leases. If you find that 95% of your signed leases are referred from one particular ad in a certain magazine, you can start to eliminate ads in magazines that do not get you the same exposure, this means you save money. Tracking referral sources also allows you to put the optimal message out there, or allows you to target which property you market in which publication. You may even find out that your best marketing tool is a good old lawn sign. Never waste money on an ad that does not work.

By Shah N. Khan

‘Goodwill’ is regarded as an intangible asset in a business. Goodwill carries a value over and above the tangible assets of a business, and representing all benefits derived from the distinctive location, trade and brand names, credit rating, reputation, cusotmers and patronage of the business. When a business is sold, a charge is usually applied for the goodwill as one of the assets.

Goodwill develops by virtue of quality of products or service found beneficial by the customers, clients, users, vendors etc. and the manner and style in which the products or services are presented. Good advertising helps in accelerating pace of development of goodwill and prestige. Usually advertising and other image building techniques take goodwill and sales to new heights of fame, renown and prestige. Sponsoring sports and social events, donations to charity etc help in enhancing prestige and fame.

A brand name can help add to the goodwill of the business besides acquiring its own goodwill value. Truly great brands are far more than just labels for products or trademarks; they are symbols that encapsulate the desires and liking of consumers as well their trust and confidence. In most cases products acquire fame under their brand name rather the name of their manufacturer as we see in case of cold drinks and soaps etc.

On other hand there are many companies, which are famous, and their name helps in generating confidence and trust in their different products. The products of Pharmaceutical and Electric Companies and different brand names for their products may not be as famous as the company itself. It is the prestige and goodwill of the company that helps in improving competitive position of the product in the market.

Trademark as a name, symbol, or other device identifying a product, officially registered and legally restricted to the use of the owner or manufacturer becomes an intangible asset and part of good will that can be sold separately or its use allowed to different manufacturers in different areas. Most franchise businesses owe their success to the fame and prestige attached to their brand names. Most chains of hotels and restaurants have been able to expand their franchise business world wide merely on the strength of goodwill attached to their brand names. Investors find it safe to rely on the prestige of the trade name rather than developing their own trade mark. Though they benefit from the guidance of well experienced experts and the prestige attached to the trade name, they have to pay royalty to the owners of the trade name.

Considerable efforts, ingenuity and investment are entailed in popularizing trademarks and brand names and building prestige for the organization. Content of the human intellect are deemed to be unique and original and to have marketplace value—and thus to warrant protection under the law. Intellectual property includes but is not limited to ideas; inventions; literary and art works; medicines, chemical, business, or computer processes; and company or product names and logos. Intellectual property protections fall into four categories: copyright (for literary works, art, and music), trademarks (for company and product names and logos), patents (for inventions and processes), and trade secrets (for recipes, code, and processes). Laws in many developing countries need to be reviewed and improved as concern over piracy of software, movies, music etc is being continuously expressed by the producers of movies and developers of software.

Relentless and persistence efforts are always required to maintain and enhance goodwill. Quality of products or service is of prime importance but many other factors are also important. Here is a partial list of the factors that can help in improving or damaging the goodwill.

1. Best possible quality for Sales presentation and distribution channels must be ensured. The quality of advertising, wrappers, packing and warranties is also vital. Location of offices and furnishings of high standard and good taste are always helpful.

2. Customer care and after sales service. Great damage comes from inattention and rude behavior of staff. Good service leads to multiple sales. If you take good care of your customers, they will open doors you could never open by yourself. Always strive to provide service above and beyond what the ordinary organization would give. It will help you build long-term relationships, trust, and referral business.

3. A comprehensive advertising and goodwill maintenance program must be kept under constant review. Advertising in papers and magazines, television, radio and Internet must be planned with great care based on assumption or surveys of your penetration in markets of different segment of population. Selection of site for hoardings, posters etc. must also be made in consultation with the experts.

4. Innovation and Research: By encouraging feedback from clients and sales outlets you can make improvement in designs and contents of new models or launch new and improved products. You must also keep a watch on fads and trends in those segments of population where your products are used.

5. Provision for participation in trade shows and in charity program and sponsoring sports and cultural events must be made in your budget.

Posted by Nicholas Daniels by Direction Janet Schlarbaum