Working Rental Leads

I haven't worked rentals in the past.  However, in todays market with homes taking longer to sell, I have considered it.  I have sellers who would prefer to rent their vacant property to help offset the expenses rather than to continue to pay mortgage, utilities, etc. while they wait for a buyer.  They are also hopeful that they might be able to sell at a higher price after the lease ends.  My current E & O policy does not rentals, so I would have to get a rider for the policy.

I have place about 5 renters in homes, in the last 2 months....all of them intend to buy in a year or so...so I am staying in touch with them...It is work....but hopefully it will pay off in the end...

I gotta say, I'm with the broker on this and I don't agree that agents should be able to work every "angle" of the business.  Let's look at Article 11 of the Code of Ethics.  It states that Realtors who are working with clients, that aren't your primary field (i.e. commercial) must disclose to the client that they are not strong in those areas.  Property Management has evolved a lot of the years.  I don't fee that agents are remotely compensated well enough for the liability they undertake.

Let's ask a few questions: What is the VLTA?  How does the Virginia Landlord tenant act effect you the agent, the listing agent, the renter and the landlord.  How many homes do I need to own before I am required to be under VLTA, how many homes does the local jurisdiction require before the rules apply?  How familiar are you with Article 10 and Fair Housing laws, are their special local additions (many areas do)?  How many days does a landlord have to respond to non-emergency and emergency repair reports?  How many days does the landlord have to legally give and how is notice given before entering the property?  Can you actually have an "agency" relationship with a potential renter?  What are the required disclosures?  How much of the application fee can the landlord keep?  What is the maximum deposit allowable by law?  The list goes on and on and on....  I have about 16 more questions that I usually ask when teaching this topic.

 Property Management, Commercial, Industrial, Residential are all unique and different disciplines of the trade.  To know all of it, about all of it is impossible.  

I completely agree with servicing all clients, but much like my stance with Dual Agency, many times the client is best served by being referred to another agent.  The income is too low and the liability too high.

As always, I am not an attorney or your managing Broker, but you should sit down and ask their opinions on these issues...

I don't do rentals, mainly for the reason that I don't have time and I know I won't do a good job. I do see the value of the marketing plan via getting rental clients to turn into buyer clients, but the conversion ratio is just not high enough for me. I am sure there are those who have done a better job with it and disagree. I think in the end, you have to stick to doing what you feel comfortable with.

I recently took my name off out companies Rental list.  I was getting way too many people that wanted me to drive them around but weren't really serious about renting one of the homes. Or had such credit issues that no one in their right mind would rent to them.  I rather spend my time working with clients that are serious. 

  I will take renters, but I am learning really fast to watch how much of my time they spend. I cannot tell you how many people end up finding a rental by owner on Craigslist and that is that. Some do not even bother to let me know they have found something. So what if I have spent time searching the MLS for them. Most peopel do not understand how our business works and as much as we want to treat everyone with the best customer service possible, eventually, it comes down to smart business decisions and spending your time, efforts and enrgy on things that have a bigger payoff so that you can survive in this industry. I do think they can be good to add to your SOI. Just be smart and don't let them run you around too much. If they mention "oh, I found this on Craigslist" you may want to runthe other way....

The other challenge that seems to be out there is many folks who have been foreclosed on are now rental clients, but there credit is trashed. Not such an appealing situation for a Realtor.