Real Estate Agents Quoting Potential Rent in Your Listings? Let's Be CAREFUL!

Wallace: Excellent advise. If it's an investment property, I quote what rents have actually been received for that property. Sometimes I quote POTENTIAL rent slightly higher because the current renter is getting a slight discount since the property is on the market and he has to allow us access to show. I don't normally do rentals either, but if there are tenants in the listing, you have to deal with them.

Wallace,

I couldn't agree with you more.  I see folks coming into our office that have been quoted rental rates that are all over the board.  Guess who quoted the rates?  A Realtor.  I even wrote a blog about it recently: Realtors, are you really qualified?

Wallace, 

I am still chuckling at the first comment, "there is no money in rentals".  

Knowing your business and what you are capable of quoting or not is key.  We routinely surprise folks with rental rates - on the high side, as we know what the true market value is.  I had a neighborhood sales expert call me about a rental I had listed. She said she had very qualified buyers IF I would just get the rent to a cheaper more reasonable level - she could rent it out.  It was a pleasure to tell her we had just gotten signed lease paperwork and deposits on a FULL PRICE rental!

All the best, Michelle

When it comes to discussing rents with an investor client, we collaborate with a local agent who handles rentals full time.  They often get the property management business.

I agree the agents are on a slippery slope when they start quoting rents.   Its best to refer your sellers to a property management company and work together on the listing.  I have a company that I work with.  I work on selling it and if the time comes to renting the home out the property management company then takes over in the area they are experts in.  You need a team

Great warning, Wallace...a slip of the lip (or print)  So many agents are delving into investment properties without enough knowledge to protect themselves and their clients.  Education is key...if you don't want to invest the time in learning a specialty, stay away from it!

good advice. Seems like with a lot of things some agents try to do everything and every type of transaction.

It pays for agents to focus

Best regards, Charles

I think it's dangerous - what if a buyer purchases the house based on the potential rents that we give on the MLS and then it is too high?  Liability...we typically do put "current rents" though if it is already occupied.  I don't know enough about rents anyway, I'd need a property manager involved. -Kasey

Hi Wallace - The rental market is like all fields.  You got to know what you are doing.  Know your market.

Wallace, a sticky issue for sure. Always a careful analysis with a Property Management Company based on past rents. When that data is not available....it is critical to have a PMC that will know the rental market and can advise the client. I so agree with you on the delicate nature of the issue....that hypothetical initially only to be qualified by the PMC. I do investment analysis for Investor...but always say projected until verified by PMC. Great post. Have a great day!