Some Landlords Need a Property Manager But Don't Know It

By
Property Manager with HomePointe Property Management, CRMC 00691121

I met with an owner today that was convinced her property should rent for $800 or more.  I explained to her that the owner two doors down was asking $650 and the comparable rents in the area were closer to $700.00.  Her vacancy was extending into its third month with no bites.

To make matters worse, the neighbor upstairs was noisy and had two illegal tenants.

In my estimation, the root of the problem is an over priced property.  Rents that are too high make an owner make bad decisions.  Since only a few people apply due to the high price the owner gets desperate.  The only tenants that apply are those with bad or questionable credit, bad or no rental reference, and income that may not qualify for the long term.  Why, because good tenants shop price and can live anywhere.  Bad tenants have to find an owner that has no standards.

In the end the owner will have to make a tough decision.  Continue with the high rents and those problems, or lower the rents and have fewer problems and less income.  But, the income may actually be higher at lower rates as it will be collected and vacancies will be filled.

Posted by

Robert A. Machado, CPM, MPM

HomePointe Property Management

Sacramento, Yolo, El Dorado, and Placer Counties

We manage residential and commercial property.

916-429-1205 x 105

rmachado@HomePointe.com

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Wallace S. Gibson, CPM 01/12/2010 09:18 PM
Topic:
ActiveRain Community
Groups:
Investing in Real Estate
Investors
National Association of Residential Property Managers (NARPM®)
Realtors®
Rental Agents and The Single Family Rental Market
Tags:
high rents

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Rainmaker
656,032
Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes

Rents too high are not going to fly in this economy -- some owners just do not "get" it.

Jan 12, 2010 04:54 PM #1
Rainer
104,448
Frank Kliewer
Woodinville, WA

Good Points Robert, again it is about using professionals to get the job done right.

Jan 13, 2010 06:16 AM #2
Rainmaker
1,361,633
Nick T Pappas
Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Hun... - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

Robert, I never looked at it quite that way before.  It makes a whole lot of sense...of course pricing a home right whether it's for sale or lease always makes sense.

Jan 13, 2010 08:11 AM #3
Rainer
234,783
Diane Rice
Rice Prprty Mgmnt & Rlty, LLC, South Holland, IL - Lansing, IL
SFR, SRES, CNC

Good post Robert.  Wallace reblogged this and my comment is on her post because we did not see it listed in the Property Management group!

Jan 15, 2010 12:35 AM #4
Rainmaker
129,000
Craig Snead
Quality Home Investments, LLC / Dearborn Heights, MI - Dearborn Heights, MI
Real Estate Investor

Robert, I am a landlord and I agree with your points. Price it right and it will fill. Greed can cloud reality.  I would prefer a paying tenant over a vacancy any day.

Jan 15, 2010 11:27 PM #5
Rainmaker
191,066
DEBORAH STONE
Balboa Real Estate San Diego, CA - San Diego, CA

Robert, many owners think all that you have to do is run an ad on Craigslist and a tenant will appear. It is alot more complicated and involves knowledge of many legal points. I have seen owners get in trouble and lose so much money because they didnt want to spend the monthly management fee.

We need to educate them that not only do Property Managers take away their monthly headaches but we keep them out of court.

 

Feb 02, 2010 10:22 AM #6
Rainer
18,948
BJ McKellar
Real Property Management Metro MD/DC - Washington, DC

The hardest part of our job is managing expectations!

Feb 06, 2010 07:13 AM #7
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Rainmaker
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Robert Machado

CPM MPM - Property Manager and Property Management
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