Attention: Berkshire Communities Property Staff
As we approach the budgeting period for 2025, it’s crucial to be aware of certain unethical practices by apartment brokers that could significantly inflate your marketing costs and reduce your return on investment.
The Issue: Fake Websites and Misleading Ads
Brokers have been known to create fake websites that mimic the official websites of apartment communities. These fake websites are designed to mislead potential residents into thinking they are interacting directly with the apartment community.
Here’s how the scheme works:
- Creation of Fake Websites: Brokers build websites that look like the official site of your apartment community.
- Branded Search Ad Buys: They purchase search ads using your community’s brand name, making their fake site appear as the top search result.
- Call Interception: When a potential resident contacts what they believe is the apartment community, the broker intercepts the call.
- Lease Credit: The broker then passes the call to your staff, claiming credit for the lease.
The Financial Impact on Apartment Marketing
Higher Costs: Brokers charge a substantial fee for each lease they secure, sometimes up to two months’ rent. This is significantly higher than the cost of a lease obtained through your own branded ads.
Inflated CPC: Their activities drive up the Cost Per Click (CPC) for your own branded search ads, making your legitimate marketing efforts more expensive.
Cost Per Lease: The cost per lease in these scenarios can be 3 to 10 times higher compared to traffic that comes directly through your own marketing channels.
The Solution for Better Digital Marketing
To mitigate these issues, ensure that any relationship with brokers includes clear agreements:
- No Misrepresentation: Brokers must not represent themselves as your apartment community.
- No Unauthorized Marketing: Brokers should not create any marketing materials or websites that could confuse potential residents.
- No Branded Search Ads: Brokers should be prohibited from buying branded search ads using your apartment community’s name.
By enforcing these agreements, you can protect your brand, reduce unnecessary costs, and ensure that potential residents are reaching your official channels.
Example of the Issue
The screenshot above demonstrates a typical scenario where a fake broker website appears alongside the real apartment community website in search results, potentially misleading residents and driving up marketing costs.
These Are Not New Leases But Stolen Leases
When brokers engage in these bad practices, they are not bringing in new leases that wouldn’t have found your apartment community on their own. Instead, they are intercepting potential residents who are already searching for your community by name. By creating fake websites and purchasing branded search ads, brokers are simply stealing your organic traffic and claiming credit for leases that would have been secured through your legitimate marketing efforts. This practice not only inflates your marketing costs but also undermines the effectiveness of your digital marketing strategy. Ensuring clear agreements with brokers can prevent these deceptive practices and protect your community’s marketing budget.
Ensure your budgeting plans for 2025 take these factors into account and implement strategies to safeguard against these bad broker practices. By doing so, you can maintain control over your brand and optimize your digital marketing spend effectively.
