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YES! I am advising SOME rental prospect callers to TALK TO A REAL ESTATE AGENT!

By Wallace S. Gibson, CPM

Property Manager with Gibson Management Group, Ltd.

August 21, 2011 11:12 PM

Two recent phone calls from rental prospects have me telling them to RUN don't WALK to a real estate agent * who is knowledgeable about short sales!

When prospects want to talk to me about viewing a property that is available NOW and they are not moving for a month or 6 weeks, I ask when their current lease terminates. This opens the door to their volunteering that they are in (1) FORECLOSURE; or (2) Considering a SHORT SALE.

I am not interested in working with them if they are remaining in their current home through the foreclosure process. While common wisdom would say that they are "saving" their money to pay first month's rent and deposit, in actuality, they are most likely gaming the system and will most likely have a "victim" mentality that they will carry over to a landlord-tenant relationship.

If they mention they are considering or thinking about a short-sale of their property, I URGE them to talk to a real estate agent to learn their prospects and options. Their frustrations may will be unfounded if a KNOWLEDGEABLE real estate agent can work on their behalf.

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Conrad Allen

Re/Max Professional Associates - Webster, MA

Webster, Ma, Realtor

Hi Wallace - The old victim mentality rearing its ugly head. You are the voice of experience.

Aug 21, 2011 11:21 PM

Lynn B. Friedman CRS Atlanta, GA 404-617-6375

Atlanta Homes ODAT Realty - Love our Great City - Love our Clients! Buckhead - Midtown - Westside - Atlanta, GA

Concierge Service for Our Atlanta Sellers & Buyers

Dear Wallace,

Your comment to Conrad indicates that you are advising the callers about finding a road OUT of their difficulties to stay in thier home. Very kind.

In addition, your confirmed attitude about client behavior is a good, self-protective model. If it doesn't seem balanced in the beginning, where can it go? Downhill !

I think it takes years of individual experiences to formulate a model.
I have been managing rental units since 1973 and I have built up a sorting system.

Your model pivots on Short Sale or Foreclosure comments. I always ask why they are moving. My response often pivots on complaints about the soon-to-be-EX-Landlord.

If that Landlord got everything wrong,I may not be able to do anything "right" either!

Have a happy day -
Lynn

Aug 21, 2011 11:27 PM

Wallace S. Gibson, CPM

Gibson Management Group, Ltd. - Charlottesville, VA

LandlordWhisperer

Conrad * AGAIN, I know enough to know that I don't know enough to get involved OR provide council and there are real estate agents who KNOW how to guide these people. Their stories are heartbreaking and they should have talked to a real estate professional MUCH earlier in the process.

Aug 21, 2011 11:27 PM

Wallace S. Gibson, CPM

Gibson Management Group, Ltd. - Charlottesville, VA

LandlordWhisperer

Lynn * This HOMEOWNERS becoming TENANTS is new for me although I have been in the biz 45+ years. Learning the questions to ask and how to ask them is a REAL learning curve. When they volunteer their situation when I ask when they are moving, I know I need to change my hat as I may be the FIRST real estate professional they have discussed their situation with....WHEW!

Aug 21, 2011 11:36 PM

Clint Mckie

Desert Sun Home, commercial Inspections - Carlsbad, NM

Desert Sun Home, Comm. Inspection 1-575-706-5586

Hi Wallace,

Good points to ponder. I don't like it when a homeowner wants to rent a home when you find out they may be headed for a short sale or forclosure. What's going to happen when the new buyers want to move in after buying the property in question?

No good getting a years lease when it can be broken by the new buyers.

Best Clint Mckie

Aug 22, 2011 12:02 AM

Lynn B. Friedman CRS Atlanta, GA 404-617-6375

Atlanta Homes ODAT Realty - Love our Great City - Love our Clients! Buckhead - Midtown - Westside - Atlanta, GA

Concierge Service for Our Atlanta Sellers & Buyers

Dear Wallace -

I think you are 100% correct. You probably ARE the first professional real estate individual with whom they have spoken. The depression about losing everything prevents looking for solutions. In fact, it may not even occur to them that a solution MAY BE POSSIBLE.

Nice of you to help out.
Have a happy day -
Lynn

Aug 22, 2011 12:10 AM

Mike Cooper, Broker VA,WV

Cornerstone Business Group Inc - Winchester, VA

Your Neighborhood Real Estate Sales Pro

Wallace, that is good advice. I find that a lot of people in this situation get their information from a friend who knows somebody who is related to someone who did a short sale. It's all snippets of information that they have pieced together to come up with a skewed idea of what their options are, and too often they're wrong. Good job!

Aug 22, 2011 12:19 AM

Ginny Gorman

RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI

Homes for Sale in Southern RI and beyond

Wallace, i have advised many of my landlords to accept families who have gone through short sale...sometimes i have a list & my gut always tells me who to bubble up ...my gut has always been good to me and the landlord...but it can be a cowpie stepping trial too...thanks!

Aug 22, 2011 12:21 AM

Wallace S. Gibson, CPM

Gibson Management Group, Ltd. - Charlottesville, VA

LandlordWhisperer

I agree * the sooner these people get to people who know what to do, the better. Many do not understand that real estate agents will help them in a short sale

Aug 22, 2011 12:27 AM

Scott Fogleman

New Home Team - Richmond, VA

Wallace, as always, you have a good voice of reason.. Let someone help them if they can

Aug 22, 2011 12:44 AM

Cheryl Ritchie

RE/MAX Leading Edge www.GoldenResults.com - Huntingtown, MD

Southern Maryland 301-980-7566

Congratulations on another featured post! I refer rentals to experienced rental agents in my area who specialize in handling them.

Aug 22, 2011 01:05 AM

Michelle Francis

Tim Francis Realty LLC - Atlanta, GA

Realtor, Buckhead Atlanta Homes for Sale & Lease

Wallace,

Yes, referring them to folks who can possibly help is a great next step. Sometimes folks have just become paralyzed by what appears to be an overwhelming problem, as opposed to seeing what options they have.

We are seeing a ton more homeowners who haven't leased in decades look for executive rental homes, as they do not WANT to buy. Phenominal credit scores and cash in the back, but no desire to purchase today.

All the best, Michelle

Aug 22, 2011 01:24 AM

Scott Godzyk

Godzyk Real Estate Services - Manchester, NH

One of the Manchester NH's area Leading Agents

I just met with one of the larger landlords of condominiums and single family homes in the area last week who said to me not to bring hom any potential tenants who were facing short sale or foreclsoure, he said it best that if they cant afford to pay and take care of their own house, why would they want to take care of and pay him for renting his. (i guess he has been burned a few tomes this year already). he said for hom to even consider it, he visits where they live now to see how they live and take care of their property. He will consder them if it is neat and in proper order.

Aug 22, 2011 01:28 AM

Michael Setunsky

Woodbridge, VA

Your Commercial Real Estate Link to Northern VA

Wallace, I agree the sooner they get help form an agent who knows short sales the better of they will be.

Aug 22, 2011 01:32 AM

Harry F. D'Elia III

WEDO Real Estate and Beyond, LLC - Phoenix, AZ

Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

I just thought I would start shopping now. Yes, I get the same phone calls. There are times when we just start the short sale for them.

Aug 22, 2011 01:49 AM

Wallace S. Gibson, CPM

Gibson Management Group, Ltd. - Charlottesville, VA

LandlordWhisperer

I it is the VICTIM mentality that scares me for my property owners. I actually had one woman advise me she was filing for bankruptcy when her attorney got back from vacation * NEXT!

Aug 22, 2011 06:35 AM

Lloyd Binen

Certified Realty Services - Saratoga, CA

Silicon Valley Realtor since 1976; 408-373-4411

Wallace,

I have a survey question. Roughly, what percent of your new tenants, or tenant applicants, were foreclosed upon or are short sale candidates?

Many foreclosures in San Jose displace 2-3 family groups because the garages were converted to living space. Sometimes two very small living spaces.

Aug 22, 2011 09:20 AM

Rich Murray

PMNC, Cary, NC - Cary, NC

GRI, ABR

I'm finding some of these situations to be OK. I prefer not working short sales but many owners who are losing their homes are not the typical, irresponsible potential tenant. Many just fell into a bad situation due to the poor economy.

Aug 24, 2011 03:05 PM

Robert Vegas Bob Swetz

Las Vegas, NV

Hello Wallace and this is a great post ... Congrats on the feature from AR

VB ;o)

Sep 01, 2011 06:42 AM

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YES! I am advising SOME rental prospect callers to TALK TO A REAL ESTATE AGENT!

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