Tech and rental property: A marriage made for profit
This is an article ‘Tech and rental property: A marriage made for profit’ by Marc Primo
We all know that data-driven search intent can be a powerful tool for any business looking to profit. The same thing applies to rental websites that want to offer more to online travelers via unique features or newsletters. According to a study by the National Association of Realtors, the most common reason for renting is that it is more affordable than buying a home.
In fact, vacation rentals saw a 20% increase in the past two years, while 54% of rental property owners expect more growth in the next two. By analyzing user search queries and behavior, rental websites can gain valuable insights into the needs and preferences of their target audience and use this information to optimize their offerings and improve the overall user experience.
Defining efficient marketing efforts in the world of new travel
One fundamental way that data-driven search intent can help online rental sites is by providing them with a better understanding of what their users are looking for online. A rental website can identify hundreds of buyer persona types for every niche travel market. There are your retirees, luxury travelers, and business guests, to name a few. Needless to say, it's imperative to identify which choir you're preaching to first before narrowing down their preferences, behaviors, and pain points.
For example, by analyzing search queries, rental websites can identify the most popular types of rentals, such as apartments, houses, or vacation homes. They can also identify critical features specific travelers are looking for, such as preferred destinations, area sizes, or amenities.
According to the Content Marketing Institute, such practices are essential as targeted marketing campaigns have a nearly six times higher conversion rate than non-targeted campaigns. By understanding these preferences, rental websites can better channel their marketing efforts and improve the visibility of their offerings. Analyzing data-driven insights to create targeted ads that highlight the features that users are most interested in goes a long way.
However, optimizing your website design to make it easier for users to find the rentals they are looking for will bring them back to your site or even make your brand a household name. A study by the Baymard Institute found that nearly 70% of online shopping carts are abandoned after website visits because brands fail to address their target market's pain points.
This tidbit means that defining how you can operate more efficient marketing strategies relies on knowing each traveler persona you identify by heart. More importantly, you should also be aware of what they need or are looking for before you even reach out to them via content.
Read between the codes
Another way that data-driven search intent can help rental websites is by providing them with insights into how identified travelers and visitors interact with their websites. By analyzing user behavior, such as the landing pages they visit, the length of time they spend on the website, and their actions, rental websites can identify content sections within their site that are working well and areas that need improvement.
If users spend much time on a particular page, you can conclude that they find your content helpful and informative. On the other hand, if they bounce off your website in a blink, it's easy to figure that your content is not providing the information they need despite having them visit your site. The interest that was there suddenly disappears like a bubble, which you never want to happen.
McKinsey & Company found that companies that make data-driven decisions are 23 times more likely to acquire customers and six times as likely to retain them. By using data-driven search intent to gain a deeper understanding of your users and how they interact with your website, you can make better data-driven decisions that will help improve the user experience and increase profits.
Take advantage of real estate's democratization
As world travel returns to full swing, data-driven search intent plays a crucial role in the growing trend of fractional real estate investments. More online travel companies embrace data insights to enjoy a sneak peek at the needs and preferences of their target audiences.
Last year, real estate investment platform Fundrise purchased an entire neighborhood of 146 single-family homes in Jacksonville, Florida, for $55.9 million. The Company derived data-driven insight to discover how this area will be in high demand. Naturally, the next step was to invest. Today, the homes are 100% occupied, which translates to instant rental income for investors who have placed their chips with Fundrise for as little as $10.
Putting this in review, let's say you've purchased a rental property on your own and found that the standard requirements, such as a good credit score and a substantial down payment, can be a significant barrier to entry for many potential investors. With the rise of fractional real estate investing, this barrier is now being lowered.
This development is especially beneficial for newer investors and those needing more requirements. One study shows that one out of five home buyers has resorted to alternative mortgage financing. The study highlights the challenge many potential investors face when trying to enter the rental property market independently.
Fortunately, fractional real estate has democratized the purchase of properties. More investors are now allowed to pool their resources to lower the cost of entry, bridging the class gap and allowing more people to enter the rental property market. Not only is this beneficial for the investors but also the rental industry as a whole, as it can lead to increased demand and profitability.
Bringing home the bacon
Data-driven search intent can be a valuable tool for rental websites looking to boost profits by providing insights into user preferences and behavior. In turn, rental sites can use these data sets to optimize their websites and improve the user experience.
The bottom line is that rental websites need to analyze search queries, user behavior, and other data points before jumping the gun on reaching out to potential renters. Gaining a much deeper understanding of their identified traveler personas and creating more personalized and profitable content experiences for their users brings home the bacon and whisks guests to their preferred getaway destinations.