Real Estate Marketing Cash Flow of a Vacant Apartment.
Let's say you have one vacancy for an apartment that rents out for $1500 per month. Every day it is vacant you are losing $50. ($1500/30 days=$50/day) If we help you rent it even a day quicker than you would without our services, the rent earned in that one day ($50/day of rent) pays for a whole week of advertisement!($50/week of web advertisement)
If it stays vacant for the whole month, you lose $1500.
Just do the math:
Let's consider the following 5 scenarios: (please see the cost/benefit table below.)
A. You are unable to rent the unit for the whole month while running our ad. You lose $250 in addition to not collecting any rent.
B. You are able to rent on the 27th of the month. You break even -- the rent you collect the last 4 days of the month pays for the ad. And you have a paying tenant for the next month!
In the last 3 examples, you end up with $250, $600 and $1,050 more in your pocket!
C. You are able to rent on the 22nd of the month. You net $250 more than you would if it stayed vacant.
D. You are able to rent on the 15th of the month. You net $600 more than you would if it stayed vacant.
E. You are able to rent on the 8th of the month. You net $1,050 more than you would if it stayed vacant. Note that this is NOT UNLIKELY because the 30-day notice from your tenants allows you to start the re-renting campaign long before you are losing money on a vacancy.
| Real Estate Advertising: Owner's Cash Flow Analysis |
|
No Ad |
$50/week ad running |
| Day of the month |
Rented all month long |
Vacant all month long |
A. Not Rented + Ad (a rare worst case) |
B. Break-Even Rented on 27th |
C. Rented on 22nd |
D. Rented on 15th |
E. Rented on 8th |
| 1 |
$50 |
$0 |
-$50 |
-$50 |
-$50 |
-$50 |
-$50 |
| 2 |
$100 |
$0 |
-$50 |
-$50 |
-$50 |
-$50 |
-$50 |
| 3 |
$150 |
$0 |
-$50 |
-$50 |
-$50 |
-$50 |
-$50 |
| 4 |
$200 |
$0 |
-$50 |
-$50 |
-$50 |
-$50 |
-$50 |
| 5 |
$250 |
$0 |
-$50 |
-$50 |
-$50 |
-$50 |
-$50 |
| 6 |
$300 |
$0 |
-$50 |
-$50 |
-$50 |
-$50 |
-$50 |
| 7 |
$350 |
$0 |
-$50 |
-$50 |
-$50 |
-$50 |
-$50 |
| 8 |
$400 |
$0 |
-$100 |
-$100 |
-$100 |
-$100 |
-$50 |
| 9 |
$450 |
$0 |
-$100 |
-$100 |
-$100 |
-$100 |
$0 |
| 10 |
$500 |
$0 |
-$100 |
-$100 |
-$100 |
-$100 |
$50 |
| 11 |
$550 |
$0 |
-$100 |
-$100 |
-$100 |
-$100 |
$100 |
| 12 |
$600 |
$0 |
-$100 |
-$100 |
-$100 |
-$100 |
$150 |
| 13 |
$650 |
$0 |
-$100 |
-$100 |
-$100 |
-$100 |
$200 |
| 14 |
$700 |
$0 |
-$100 |
-$100 |
-$100 |
-$100 |
$250 |
| 15 |
$750 |
$0 |
-$150 |
-$150 |
-$100 |
-$100 |
$300 |
| 16 |
$800 |
$0 |
-$150 |
-$150 |
-$150 |
-$100 |
$350 |
| 17 |
$850 |
$0 |
-$150 |
-$150 |
-$150 |
-$50 |
$400 |
| 18 |
$900 |
$0 |
-$150 |
-$150 |
-$150 |
$0 |
$450 |
| 19 |
$950 |
$0 |
-$150 |
-$150 |
-$150 |
$50 |
$500 |
| 20 |
$1,000 |
$0 |
-$150 |
-$150 |
-$150 |
$100 |
$550 |
| 21 |
$1,050 |
$0 |
-$150 |
-$150 |
-$150 |
$150 |
$600 |
| 22 |
$1,100 |
$0 |
-$200 |
-$200 |
-$150 |
$200 |
$650 |
| 23 |
$1,150 |
$0 |
-$200 |
-$200 |
-$100 |
$250 |
$700 |
| 24 |
$1,200 |
$0 |
-$200 |
-$200 |
-$50 |
$300 |
$750 |
| 25 |
$1,250 |
$0 |
-$200 |
-$200 |
$0 |
$350 |
$800 |
| 26 |
$1,300 |
$0 |
-$200 |
-$200 |
$50 |
$400 |
$850 |
| 27 |
$1,350 |
$0 |
-$200 |
-$150 |
$100 |
$450 |
$900 |
| 28 |
$1,400 |
$0 |
-$200 |
-$100 |
$150 |
$500 |
$950 |
| 29 |
$1,450 |
$0 |
-$250 |
-$50 |
$200 |
$550 |
$1,000 |
| 30 |
$1,500 |
$0 |
-$250 |
$0 |
$250 |
$600 |
$1,050 |
| Ad Value: |
-$250 |
$0 |
$250 |
$600 |
$1,050 |
| First day of being rented |
Usually the benefits far outweigh the costs! |
|
Therefore our services have a real value to the owner of $250, $600 and $1,050 (which is what the owner gains after advertisement expenses.)