Virtual Tours Hurt Conversions

Sam Parr shares his skepticism about virtual tours in the apartment rental industry, particularly for lower-end properties, based on his previous experience and understanding of the market dynamics.

• Virtual Tours Can Hurt Conversion:

  • Properties that aren't visually appealing look worse in 3D/virtual format
  • In-person sales tactics are more effective for lower-quality units
  • Salesmanship works better face-to-face than online

• Current Market Conditions:

  • Low vacancy rates reduce motivation to invest in new tools
  • Property managers question the need for additional marketing when units are filling easily

• Sales Psychology:

  • Some properties need in-person viewing to close deals
  • Compares it to selling a used car: "I don't want a user video of a 1994 Honda Civic"
  • Face-to-face interaction allows better opportunity to overcome property shortcomings

• Industry Challenges:

  • Property management companies are notably old-school
  • Working with apartment buildings and campuses is particularly difficult
  • These customers can be "a pain in the ass to work with"

The perspective emphasizes that while virtual tours might work well for high-end properties, they can actually be counterproductive for properties that rely heavily on in-person sales tactics to overcome their limitations.