The Tokyo rental market is changing on a daily basis, and the key to success for young real estate salespeople is to understand the latest trends and learn effective sales techniques. This article explains the demand trends in the Tokyo rental market as well as practical points for achieving results in property management sales. We will introduce specific techniques such as quick response to responses, CRM utilization, and local SEO measures, and finally, we will touch on INA&Associates' unique characteristics. We hope you will find it useful as a hint for your sales activities.
Tokyo is a market where rental demand is strong due to the continued population influx. The number of single-person households in Tokyo has been increasing particularly rapidly in recent years, and as of 2020, the percentage of single-person households in the total number of households in Tokyo will exceed half, at 50.26%. 460,000 single-person households have increased since 2015, indicating an increased need for smaller properties such as studio apartments. Single-person households and younger single-person households are the main clientele, and the ability to respond to such single-person properties is required.
Another trend in the Tokyo market is the increasing need for foreign tenants. According to statistics from the Ministry of Internal Affairs and Communications, the number of foreign residents, which had been on the decline due to the Corona disaster, will begin to increase again around 2022. The number of foreign workers is certain to increase in the future against the backdrop of a declining Japanese workforce, and the presence of foreign clients such as expatriates and foreign students on assignment from abroad is increasing in the Tokyo rental market. In fact, along with demand for corporate housing, there have been reports of an increase in room search consultations by foreigners. On the other hand, there are still not enough property management companies and brokerage firms that can provide multilingual services, and it will be a challenge to develop an acceptance system that includes language support and cross-cultural understanding. Young salespeople will be better able to respond to this new demand by learning English and gaining knowledge of foreign business practices.
Optimizing the sales flow is essential to achieving success in rental management sales. The first and most important factor is the speed of initial response to inquiries. Once an inquiry comes in through a property portal or your company's website, you will be less likely to miss the opportunity to close the deal if you respond faster than your competitors. In fact, companies that are performing well in the real estate industry are emphasizing the importance of contacting the responding clients "as soon as possible and at a higher frequency, even if it is only for a minute or a second. One company reported a 42% conversion rate (industry average: 30%) from email inquiries to store visits and an average initial response time of approximately 1.12 minutes as a result of implementing a dedicated response team. This rapid response time is effective in enhancing customer confidence and preventing customers from shifting to other companies.
Next, consider the division of labor in the sales process. Instead of having one sales person handle all of the tasks, such as responding to inquiries, showing previews, and processing contracts, divide the workload among the salespeople to increase expertise and efficiency. Many companies with strong track records practice a "division of labor between sales and response," with a dedicated staff member handling inquiries to avoid delays in the initial response process. For example, a dedicated response staff member can quickly handle everything from receiving inquiries to narrowing down the listings, while the staff member in charge of responding to store visits and previews can focus on face-to-face contact with customers. This allows each staff member to focus on his or her own role, and the team as a whole can achieve a speedy and high quality sales flow. On the other hand, when introducing a division of labor system, it is also important to establish rules to facilitate information sharing and customer handover. Make the most of the benefits of the division of labor by sharing customer information and progress on the internal system, and confirming collaboration in simple morning and evening meetings.
It is also important to streamline the sales process by utilizing digital tools. Nowadays, the environment is becoming increasingly online, where everything from property searches and viewing appointments to important item explanations (IT important explanation) and the conclusion of contracts can be completed online. In many cases, electronic contracts are being used instead of paper contracts, and contracts are being signed using web conferencing systems instead of face-to-face meetings. In the sales field, IT can also be used to improve productivity and customer satisfaction by using chat tools to quickly respond to customers and by using tablet terminals to explain properties. Younger employees in particular are quick to learn about digital devices, so they should actively try out the latest tools and incorporate them into their own sales flow. For example, combining template replies and chatbots to respond to inquiries, and using an online viewing system to guide customers through the process of viewing a property will dramatically improve work efficiency.
CRM (Customer Relationship Management) is an effective way to centrally manage customer information and improve the efficiency of customer follow-up (follow-up). This enables the person in charge to quickly grasp the content of past inquiries and contract status and respond appropriately. For example, the system keeps a record of what was said on the phone or by e-mail, the schedule of previews, and the history of proposals, making it easier to follow up appropriately with questions such as, "How is the property you proposed last time? The sharing of history allows the entire team to respond to customers in a unified manner, which has the effect of preventing the use of a single person for each task.
In addition, by utilizing the reminder function of CRM, it is possible to automate and streamline the customer follow-up process. For example, if tasks such as "contact again in xx days" or "contract renewal information on xx day" are set in the system, the system will automatically notify you when the time and date arrive, preventing you from omitting to respond. In fact, CRM for the real estate industry has a function that automatically extracts tenant information and sends out reminders when the contract renewal date approaches, and also supports the preparation of renewal contract documents. For companies whose main business is rental management, the functions of contract renewal management and tenant follow-up are key to maintaining customer satisfaction, so it is advisable to choose a CRM with such functions. By automating complicated customer follow-up tasks with a system, the burden on sales staff is greatly reduced. Even with a small sales force, it is possible to follow up with a large number of customers without omission, resulting in an increase in the closing rate.
Furthermore, by analyzing the data accumulated by CRM, it is expected to improve the accuracy of sales strategies. By visualizing trends such as which customers are more likely to close a deal and which proposals are more responsive, effective sales techniques can be grasped objectively. By improving sales activities based on data through a PDCA cycle, even inexperienced young salespeople can steadily accumulate results. As described above, CRM is more than just a customer list; it is a reliable tool for visualizing case management, pursuing customers through automatic reminders, and streamlining contract renewal management. If you have not yet implemented CRM, try a free trial or demo first to take the first step in utilizing CRM to suit your company.
Finally, we would like to introduce a casestudy of INA&Associates, a company that has created an environment that facilitates support for the practical points mentioned above. INA has introduced in-house property management software to centrally manage contract information and maintenance schedules for multiple properties and share them in real time on the cloud. This enables staff in charge to grasp the latest property status anytime, anywhere, and to report to owners and respond to tenants promptly. The company's emphasis on clarity, structure, and consistency of property information is reflected in its internal rules and manuals, creating an environment in which anyone can perform their duties without hesitation. The company uses systems and structures to organize property management operations, which tend to be complicated, so that sales staff can focus on their core business of dealing with clients and making proposals.
INA&Associates also has a reputation for providing high-quality business support tools, and has a technology business unit that promotes in-house digital transformation for the real estate industry. As a result, INA&Associates has developed an electronic contracting system, a proprietary CRM, property appraisal tools, and other tools to provide strong backup to the sales frontline. The company's cutting-edge digital technology enables it to achieve both operational efficiency and accuracy. In addition, the company has a well-developed internal information sharing platform, where a database of successful cases and sales know-how of senior employees can be accessed at any time. For young salespeople, this has the advantage of enabling them to immediately access the information they want to know, which greatly speeds up their growth until they become self-employed.
In addition, INA&Associates' strengths lie in its generous training program and focus on human resource development. INA&Associates believes that "a company's most important asset is its people," and is proactive in investing in its human resources. Specifically, in addition to training for new employees, INA&Associates provides ongoing training programs to enable young employees to steadily advance their careers. We also have a system in place to support the acquisition of professional qualifications, such as certified real estate transaction professionals and real estate consulting technicians, and we back up the improvement of employee skills by subsidizing the cost of acquiring qualifications and holding study sessions. In addition, we have a culture in which veteran senior employees act as mentors for new employees and impart their know-how through on-the-job training. This training system has resulted in a high employee retention rate and has created a virtuous cycle that accumulates organizational knowledge. Another attractive point of INA&Associates is that the company pays attention to the comfort of working for its employees based on the idea that "there is no customer satisfaction without employee satisfaction.
As described above, INA&Associates fully supports the growth and success of young salespeople with a clear property management system, sophisticated sales support tools, and a training system that focuses on human resource development. INA&Associates' vision is "to be a platform that continuously delivers highly satisfactory performance and maximizes the happiness of all stakeholders. This philosophy permeates down to the smallest detail in the workplace. For young people, working under such a supportive corporate structure is a great asset. Develop your sales skills in an environment where it is easy to put them into practice and achieve results that will please your customers.
We have explained sales strategies based on the rental market trends in Tokyo and key points for improving operational efficiency. The key to success in real estate management sales is to keep up with market trends such as the increase in demand from single-person households and foreigners, to optimize the sales flow by responding quickly to inquiries, dividing the workload, and using digital tools, and to improve customer management through the introduction of CRM.
Young salespeople are encouraged to brush up their daily sales activities by referring to the contents of this article. By accurately grasping the needs of the market and being mindful of efficient and customer-oriented sales, you will surely see results. We support you in seizing opportunities in the large market of Tokyo and growing to be the choice of owners and tenants. We hope that you will steadily take each step toward success and become a professional property management sales representative.