In times of economic crises, one of the first budgets for multifamily businesses to be scaled back — or completely eliminated — is usually marketing. This is especially true if any of your marketing pursuits are outsourced. 

It can feel scary, if not wasteful and frivolous, to be spending the property’s or investors’ money on marketing when the economy is plunging. 

I’m here to tell you that while yes, it can be scary, it’s not wasteful or frivolous. In reality, it’s a smart business move to continue your marketing budget, if not buff it up.

Why? 

For starters, you can use that gut reaction businesses have to economic disruptions to your advantage. Most properties will reduce their marketing budget, and you can take advantage of their absence in front of your target audience’s eyes (or screens).

Second, even during an economic upheaval, people still have to live somewhere. Currently, there are 43 million renters in the United States and that number won’t suddenly change. 

Think it makes sense to cut your marketing budget because no one is moving apartments right now? Here are some statistics from this year’s pandemic and consequent economic downturn to reference: 

• 56% of renters still plan to move during this time
• Over half do not plan to delay moving
• 51% say that the pandemic has not altered their apartment selection process

An economic disruption is your chance to snag the renters whose moving plans have not changed even though the marketing plans of your top competitors have. However, keeping up the marketing budget is easier said than done when it comes to convincing key decision-makers within the property.

To help, here are some tips for defending your marketing budget during an economic disruption: 

The Research Behind Marketing During a Recession

Research is always the “big bucks” when it comes to convincing decision-makers on the topic of money because it shows a precedent for how people/businesses will behave in future similar situations. 

If the multifamily market didn’t experience a huge negative impact during the last recession, then it stands that it may not in a future situation. 

Luckily, a majority of the studies conducted in the past few decades show that businesses benefit when they maintain or expand their marketing efforts during an economic recession. Here’s a summary:

• Cutting back on marketing dollars hurts sales both during and after an economic recession.
• Businesses that maintain or expand their marketing tend to benefit from higher sales, market share, and earnings, during and after the recession compared to businesses that reduce spending.
• The benefits gained from maintaining or increasing marketing spend during a recession persist for several years, even after the recession ends.

In other words, continuing your marketing budget during an economic downturn not only minimizes losses, but can drive growth for your property.

Additionally, changes in the economy tend to open opportunities for businesses to jump from laggers to leaders. In our industry’s case, from a low lease rate to a high one. 

When your competitors tighten their marketing budget belts, you need to push on forward!

When and Where Marketing Budget Cuts Make Sense

No matter how good the argument is in favor, cuts still may need to be made. However, if you are prepared with the “where,” then you can still maintain a good marketing strategy. 

Here are some suggestions: 

• Cut back on low-performing initiatives
• Invest in fewer channels, more deeply
• Remove inefficiencies in your process
• Outsource the important tasks that take your team too much time 
• Repurpose content
• Reduce property ad spend if there are failures
• Take advantage of low costs and reduced competition

Your Apartment Marketing Budget Is Worth Defending and Maintaining During Economic Changes

Don’t let an economic downturn deter you from maintaining your marketing budget and strategy. 

Now more than ever, this is the time to hone in on your efforts and hyper-focus your target audience. Renters are still renting and the opportunity for them to move to your property is there for the taking. 

Maybe their current cost of rent is too high, maybe they had a change of income, or maybe they are unhappy with their current property’s management. By maintaining your marketing budget, you can come in and win that new lease. During a time of upheaval, it’s about being there, in front of renters, showing them how life can be better at your property.