Are rentals a waste of time?

By
Real Estate Agent with Preferred Real Estate Services
In today's market Sellers have been forced to rent their homes and/or take them off the market.  Some areas have suffered a reduction in home sale prices.  This puts some people at risk of foreclosure.  All too common do we see an overpriced home that the Seller cannot afford to reduce. 

 This opens a niche market for agents willing to do the work.  You may offer this service for Sellers or for new clients that want to rent.  People rent for many reasons.  Some have credit issues, true.  However, some rent because they have just moved to the area.  Some rent because they do not realize that they can buy.  Make sure you ask, "Why are you deciding to rent vs. buy?"  An experienced Realtor will be able to recognize if you need to get the client in touch with a lender.

 But what if they truly cannot (or do not want to) buy right now?  Keep in touch. Remember, Renters can turn into Buyers.  Plus, Renters have friends, family and co-workers that could potentially be referred to you.  So always ask for that referral!!!!

 Property Management is another service that you can offer a client (Seller).  This is very involved and not to be taken lightly.  Along with the monthly Property Management Fee you receive you must consider the level of work required.  You have to prepare monthly and year-end statements.  You are entrusted to make decisions for the care of this property.  During vacancy who will maintain the lawn?  What happens if the roof leaks?  Who will service the appliances?  Put alot of thought into this type of venture before you dive in.  If you are uncomfortable offering Property Management Services-refer them to someone!  A professional Property Management Service is well prepared with an arsenal of office staff, contractors, etc... 

 Typically, renting a property is easy and they go fast!  It may not be a huge paycheck-but it is a valuable service to offer your client.  Who knows- you might like it!

 Good luck! 

Comments (4)

Kurt Vierheller
Flagstar Bank - Wilmington, NC
Great post. There are tons of homes for rent at the moment and you may not make a million bucks off of it but you can do a bunch of them and make a good amount on volume.
Jan 26, 2008 07:18 AM
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes
I just hate dealing with rentals. Most of the agents who list them do not give you all the info you need to get the offer written properly...and you make very little money after having all that fun.
Jan 26, 2008 07:43 AM
Konnie Mac McCarthy
MacNificent Properties, LLC - Cobb Island, MD
Broker/Owner - VA & MD "Time To Get A Move On!"
Yes rentals are a pain, but I have rented 4 homes, and all of these people are potential buyers here in the next year...so you never know...always act as if
Jan 26, 2008 09:07 AM
Konnie Mac McCarthy
MacNificent Properties, LLC - Cobb Island, MD
Broker/Owner - VA & MD "Time To Get A Move On!"
Yes rentals are a pain, but I have rented 4 homes, and all of these people are potential buyers here in the next year...so you never know...always act as if
Jan 26, 2008 09:07 AM