Illusion No. 7: I don’t need a specialist for rentals!

There’s no doubt that there are certain regions and price ranges where residential properties practically rent themselves. In the city of Zurich, for example, there is a very limited supply of affordable residential properties. When it comes to rentals in the affordable segment, there are usually dozens of prospective tenants vying for a single apartment. But even in this case, it’s worth seeking advice from a Real Estate agent. When it comes to professional brokerage, simply finding a tenant isn’t enough; rather, the layperson often encounters contractual pitfalls, insufficiently detailed property handovers, and a lack of experience in assessing reliable—and, above all, solvent—tenants.

Residential properties in the high-end market or in less central locations require even more sophisticated marketing expertise, a strong network, and experience. In these cases, crucial factors are often overlooked or given insufficient consideration during the leasing process. As a result, rental rates may not reflect market conditions (being too high or too low), the wrong target groups are approached, and the properties’ full potential is not realized. It’s worth seeking the advice of a marketing professional as early as the planning stage of an investment property. This can help avoid, for example, building properties that are too exclusive or lavishly finished in locations where renting them out is difficult.

The range of services offered by a real estate marketer for (initial) lettings.

Letting of existing properties

1st property inspection and meeting with the owner

The first step is to record the owner’s requirements and inspect the property. The estate agent checks the lettability and points out possible difficulties. The condition of the property is also checked. If necessary, the owner will be recommended small improvements or even a Renovation, which will be coordinated or accompanied if desired.

2. preparation of an offer / review of the rents

Once all the factors of the property are “on the table”, the current market value is determined. A professional estate agent can use various calculation options to determine the rental price. A summary of the initial situation, a rental price estimate and an offer for letting services are the result of these initial discussions.

3. Marketing / Marketing Strategy

It’s not enough to simply list the property online on one of the well-known real estate platforms. Ideally, a good real estate agent will have developed a marketing strategy and plan before listing the property, so they can discuss the appropriate steps with the owner to achieve their goals. In addition to individual marketing measures (dedicated website, ads in trade journals, online listings, rental signs, banners, etc.), a professional real estate agent maintains their own client database, which is used to target potential clients based on specific criteria.

4. production of a rental brochure

As early as the development/creation phase of a new construction project, a rental brochure geared towards the property is created using the available information (architectural language, materialization, interior fittings, plans and visualizations). Today, a dynamic and flexible project homepage often replaces the printing of a brochure, which is more expensive and less flexible.

5. viewings / meetings with prospective tenants

“Knowing how to handle sales”—this talent is also crucial for successful leasing. Personal, one-on-one showings are conducted with prospective tenants at the property. Personal contact with a trusted real estate agent—who knows the property, its location, and the surrounding area inside and out—gives a prospective tenant the opportunity to clarify any questions they may have directly. Legal questions can also be clarified and discussed. The goal of a professional showing is for the prospective tenant to leave the property with no unanswered questions and a positive impression.

6. preparation of a rental agreement / handover of the premises

A rental agreement is drawn up for the property that includes and covers all relevant current standards. When the premises are handed over, the lease is concluded and the mandate is handed over to the management department. Specially prepared handover protocols are used for this purpose. A good tenancy agreement and a professional handover are the basis for a pleasant tenancy and help to avoid unnecessary discussions and disputes. The janitor is regularly checked, also with regard to his work in the property, and supervised by a specialist from the management department. The selection of a good janitor is a key prerequisite for the image of the property and satisfied tenants. At the same time, safety-relevant points, e.g. snow clearance, fire police
instructions, insurance, etc., are regularly checked and improved where necessary.

Unique Aspects of Brokerage for New Construction

1. consulting in the development phase/analysis

Expert advice in the development phase is underestimated by most investors. Too often, only technical, aesthetic and structural requirements are considered. Too little attention is usually paid to the importance of the property’s location, the quality of the finishes, the layout, the number of rooms and the identification of potential buyers.

A regional marketer knows the clientele, the local market and the pitfalls that need to be avoided when letting a property. Thanks to their experience, they can provide important information on the future use, materialization and layout of the living and ancillary spaces as early as the project phase. This helps to reduce vacancies, price reductions and unnecessary marketing costs. The following points are examined in this phase:

Location and market quality

• Location quality of the rental property
• Demographic aspects (income, net migration, population structure, etc.)
• Current market situation / competition analysis (e.g. number of vacant apartments in the area, new developments, cooperative apartments, etc.)
• Rental price segment in the region
• Demand for apartment sizes

Object-specific points

• Examination of the planned property (e.g. apartment sizes)
• Information about today’s housing needs
• Suggestions for materializations
• Determination of necessary additional rooms
• Checking the floor plans
• Suggestions for adjustments/improvements

2. Specific marketing steps prior to move-in/completion

In this phase, the estate agent must examine various marketing measures and propose an individual marketing plan to position the properties on the market accordingly. The following instruments should be considered in the marketing campaign:

1. advertisements (newspapers/trade magazines/internet)
2. website
3. POS advertising (point of sale)
4. Direct advertising (social media, newsletter, blogging)
5. PR measures

The costs per customer contact are lower the more targeted and larger the contact network is. Press advertising is one of the most expensive measures, while direct advertising and PR measures are among the cheapest. To this end, the broker should carefully weigh up the necessary steps, examine the possible instruments and present these to the customer for approval as an advertising mix with a budget
.

Rent it out yourself or have Ginesta Immobilien AG market it professionally?

It’s like going to the dentist: you can pull the tooth yourself or call in a professional. Below is an overview of the added value you receive from our rental services:

We know the market: location analysis/market price estimate

Due to its regional activities, Ginesta Immobilien AG has extensive experience of rental opportunities, rental prices and local knowledge. We also work with a transaction database from Wüest und Partner. This data is compared with our transactions
and checked.

We are the professionals in various disciplines: Marketing & tenancy law

Ginesta Immobilien AG works with employees who have extensive experience in letting and management. Brochures, advertisements and rental contracts are continuously optimized, we work with modern tools and use IT systems of the future. We are part of various international networks and place our properties on local and, if necessary, international websites. international marketplaces and work with partners such as relocation companies, architects and interior designers for your benefit. All our rental properties are advertised in German and English and SEO-optimized (Search Engine Optimization).

We leave nothing to chance: technical systems and a structured approach

Ginesta Immobilien AG has a specialized real estate brokerage tool designed specifically for Brokerage, which is also used for rentals. When new rental properties are listed, they are matched against our extensive existing database of rental clients. You’ll also benefit from client referrals from other rental properties. We’re able to generate about 50–70% of our leads through existing client contacts. For you, this means lower marketing costs and a higher conversion rate.

We save you valuable time: time saving/outsourcing

Ginesta Immobilien AG handles all activities from the market rent estimate to the handover of the property. This saves you valuable time. You don’t have to deal with phone calls and viewings.

Passion & know-how since 1944

Since 1944, Ginesta Immobilien AG has built up extensive experience in real estate consulting, Sales, leasing, and management. The company benefits from a large network, an excellent reputation, and a strong commitment to customer service.

PDF Illusion No. 7

Author: Claude Ginesta

Claude A. Ginesta is a federally certified real estate trustee and CEO/owner of Ginesta Immobilien AG. The company was founded in 1944 and specializes in real estate sales in the Zurich and Graubünden regions. For properties of supraregional significance, the company operates as a real estate broker throughout Switzerland via its branches in Küsnacht, Horgen, and Chur.

Publisher of the Illusions series: Ginesta Immobilien AG, www.ginesta.ch