If a major tenant repair is required emalangeni

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subcontract often to the lowest bidder with unknown track records. If a major tenant repair is required, Emalangeni Investments will be prepared and have the ability to select the best contractor at a fair price. This in turn will keep expenses down and profit margins and return on investment on target. 3.7 MARKETING PROGRAMS Emalangeni Investments is uniquely sized to both personally own and manage its investment properties. Through their extensive contacts in the Ezulwini area, Emalangeni Investments hopes to rely on Word of Mouth advertising and not be forced to allocate a large portion of their budget to advertising costs. The firm will maintain a sizable amount of print and traditional advertising methods within local markets to promote the homes and properties that the firm is selling. Emalangeni Investments intends to maintain an extensive marketing campaign that will ensure maximum visibility for the acquired units in its targeted market. 3.8 SWOT ANALYSIS SWOT stands for strengths, weaknesses, opportunities and threats. A SWOT analysis is a method for strategic planning that evaluates these four elements as they relate to 7
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Emalangeni Investment’s business objectives. The following section helps demonstrate Emlangeni Investments marketing strategy: Strengths • The rental property is well located in a growing neighborhood with easy access to neighborhood schools, shopping and restaurants. Located less than 5 minutes from MR 3, the commute to Mbabane is less than 20 minutes. • Upgrades to the property will be made by a reputable contractor with a 15 year history with the owners of Emalangeni Investments. The owners of Emalangeni Investments will paint the property themselves which will further reduce expenses. • Emalangeni Investments will come out of pocket toward the house purchase and capital improvements resulting a low, loan to value (LTV) ratio of 50%. • The owners of Emalangeni Investments have ‘day jobs’ and thus have additional income sources and savings to draw from to support business operations. Weaknesses • New entrants into real estate property management, Emalangeni Investments has limited experience owning and managing investment income properties. Opportunities • Ezulwini has low vacancy levels. • The property is located in a strong growing community and the fastest growing area in the country. • Emalangeni Investments has an opportunity to participate in a E30 million local real estate rental market. Threats • Investment real estate is economically tied – changes in unemployment, rent spikes and changes in the economy could adversely impact demand for rental units. • Declination in the local neighborhood could impact attractiveness of rents • Cost overruns in the construction budget and failure to complete upgrades in time could impact Emalangeni Investments cash flow.
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