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Your Rental Home has been VACANT for 6 months and your Agents Has not REDUCED the RENT?

By
Property Manager with Gibson Management Group, Ltd.

Our local MLS has 50 DETATCHED homes for rent as of December 1st.  I cruised through them and note the DOM and initial date of the listing.

Many of this listings have been in the RENTAL section of the MLS for months with no rent reduction.  While approx 20% are also for SALE, that means that many listings are ACTUALLY not being marketed FOR LEASE....they are STALE or ABANDONED.

Many of these rental listings may have been OVERpriced to begin with; however, when the leaves started to turn and the heat came on, they should have had a SYSTEMATIC and ROUTINE price reduction schedule to get them rented.

Few are actually posted on our local Craigslist as our MLS does not have a html export feature so these rental listing agents have to DOUBLE input the listing information and photos into a postlets format AND if they do this without watermarking the photos first, the listings are subject to being scammed.

...meanwhile, back at my computer, I am organizing my 2012 rental renewal calendar and organizing my available properties for the SUMMER of 2012.


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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  

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Curtis Van Carter
Better Homes & Gardens Wine Country Group - Yountville, CA
Your Napa Valley Broker Extraordinaire

Hi

It is amazing why the owners, presumably some are REO, will do this. As you stated, maybe most are walk-away owners? Besides this, I would bet not one has a vacant home insurance rider on their policies making them uninsured as well.

Dec 02, 2011 05:40 AM
Wale Adewoyin
1st Crown Realty Corporation 503-512-6200 - Saint Helens, OR

Like any listings, when it is approaching the average listing days and no movement, any agent worth their salt should talk to the owner about price reduction. I have found at too that sometime the agent listed for what is the going rent in the area even though subject is less the average house in condition and location.

Dec 02, 2011 05:43 AM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

I am fortunate to control the rental price in my management agreement and I AGGRESSIVELY reduce the rent until the market matches it when it is OVERpriced

Dec 02, 2011 07:46 AM
Al Raymondi
Ocean View Realty Group in Ormond By The Sea Florida - Ormond Beach, FL
Ormond By The Sea Florida - Home and Condo Sales

These holidays are traditionally the slowest time of year for leasing Wallace, nobody wants to move unless they absolutely have to.  If it is the same there those owners can count on more vacant time.

Dec 02, 2011 08:34 AM
Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

Wallace, I just did that very thing on a building I bought to rent out.The market always tells us what it will bear.

Dec 02, 2011 10:21 AM
Randi Brammer
Randi Brammer, Acctg. - Hinckley, MN
Accountant & Tax Preparer

WE don't have almost any vacant rentals in Hinckley, Mn.  I wish I had a few.

Dec 02, 2011 10:33 AM
Debbie Holmes
John L. Scott - Boise, ID
Gets the job done!

There was a property manager in Caldwel, Idaho that had similar issues.... Most of the property he managed ended up being foreclosed on and he is out of business.... NMy step mom used him....That is how I ended up managing a 5 plex in Caldwell.

Dec 02, 2011 01:36 PM
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Wallace, 

Critical to get rentals leased - vacant cost money!!!   Once you do the math on a lower rent verses two months vacant AND paying for utilities - the lower rent will sound a whole lot better. 

All the best, Michelle

Dec 03, 2011 02:46 AM
Mark Delgado
houses for rent, Solano County & Glen Cove - Benicia, CA
Benicia and Vallejo, Property Management, rental h

I can't imagine a rental vacant for 6 months. That is absurd! Marketing, pricing, sales skills all have to be focused on "the goal" of getting qualified tenants as quickly as possible. 

Dec 03, 2011 07:21 AM
Florida Management and Consulting Group Inc.
Florida Management and Consulting Group, Inc. - Coral Springs, FL
Real Estate Brokerage and Property Managers

Good feedback. You would think it would be very unusual to have a rental vacant for six months. Doesn't happen much in our area.

Sep 03, 2012 11:31 AM
Dulcey Schuster
Rentec Direct Property Management Software Tenant Screening - Grants Pass, OR
Property Management Software

That is unfortunate to have so many homes sitting  vacant because of poor management. When a house for rent is also for sale the price should be well below the average market rent because tenants don't want to deal with showings, inspections, or having to suddenly move.

Jun 18, 2013 10:28 AM
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