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So you WANT to Rent your Home! Price it RIGHT to RENT it FAST!

By
Property Manager with Gibson Management Group, Ltd.

This time of the year, we have loads of UNsold listings where the owners want to leave and rent their homes themselves.  They know to put their home on our local Craigslist and some may even use the common FREE Zillow/postlets HTML through viewing them on Craigslist or on the advice of their real estate agent.

Many actually use the photos from their MLS listing with the MLS WATERMARK on the corner.  This is a give-away that the property has been on the SALES market and rental prospects are cautious about renting a property that 1) may go BACK on the sales market while they are in residence; OR 2) where the owner may be be in financial difficulty and face the prospect of a foreclosure.

Click on Photo to Enlarge

While having RECENT photos is a good idea in ads, actually having the DATE the photo was taken is distracting and may give an unrealistic impression of the property's current condition.

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Exterior photos with snow on the ground when the property is being offered in the SUMMER or FALL is the sign of a LAZY rental agent or owner who is not on the ball.  Again, this shows that the property presentation in the ad was not well thought out.

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As the property remains UNrented, many DIY owners think that the RIGHT RENTER has not seen their ad.  In reality, the RIGHT RENTER has seen their ad and many OTHER properties and have probably selected another BETTER priced home to rent.

Unfortunately, many rental properties do not CASH FLOW when mortgage, property taxes, property insurance, HOA costs and repairs are added in.  The "carrying" costs of utilities and yard maintenance are COSTLY when the property goes unrented.

A good rule of thumb for VACANT properties is to LOWER the rent $25 every 2 weeks before school starts and then $50 every 2 weeks AFTER school starts.  If the property is VACANT, the $50 every 2 weeks rule should apply.

THE SOONER IT IS RENTED * THE SOONER $$$ ARRIVES!

If PRIOR interested renters see the rent is dropping, they may well call and arrange a viewing if they have not found another rental home.  DROPPING the RENT CREATES URGENCY with these Prospects!

Also, as other OVERpriced rental properties REMAIN OVERPRICED, the REASONABLY priced rental home appears MORE APPEALING!

New property owner clients often want to dictate the initial rent for their rental home.  I'll agree to their rental rate with the CAVEAT that I will drop the rent EVERY 2 weeks until it is LEASED.

I'm willing to try it their way FIRST, and when their property does not rent, I need to set the terms for the CURRENT RENTAL MARKET to GET IT RENTED!

Posted by

Wallace S. Gibson is a Certified Property Manager with over 50 years of property management experience and expertise.  She maintains a specialized property management business in Central Virginia serving Albemarle, Greene, Fluvanna and Louisa counties  

LandlordWhisperer

View our available Charlottesville, Albemarle and Lake Monticello rental homes online with photos and floor plans

"...to be a Virginian, either by Birth, Marriage, Adoption, or even on one's Mother's side, is an Introduction to any State in the Union, a Passport to any Foreign Country, and a Benediction from the Almighty God...." Anonymous

 

Comments(4)

Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

You know I'm in favor of a rent reduction if it will get the property leased.................that beats collecting "no rent" at all.

Oct 16, 2011 01:33 AM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Right on ROGER! Getting owners to realize that their mortgage payment is NOT related to the rent that can be charged FOR THE TIME OF THE YEAR is a challenge....

Oct 16, 2011 02:01 AM
Mark Delgado
houses for rent, Solano County & Glen Cove - Benicia, CA
Benicia and Vallejo, Property Management, rental h
Wallace, the advice you give is good for the DIY landlord and even the professional in certain markets. A difference that a professional can make is proper advertising with a farther reach than the DIY and also more attractive photos AND professional sales skills. Fortunately, we have very rarely had to lower rents on a home.
Oct 16, 2011 01:44 PM
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Wallace, 

Basic math is critical in leasing.  Much better to take slightly less than have a month of vacancy!  Sometimes I have to show a spreadsheet, as folks are just too caught up in an amount.

All the best, Michelle

Oct 17, 2011 01:22 AM