Why property management? Because it might be the best way to keep your seller, and for your seller to keep their faith in you. If you have a sales listing that you have been unable to sell, you're not alone. Where are all the buyers? Interest rates are incredibly low, are they not? Prices on many homes have been drastically reduced.... So where are the buyers? Is your seller asking you the same question?
Everyone has to live somewhere. If the "buyers" are not buying, they're renting. If you are having a hard time selling your listing or listings, why not offer the seller an alternative? Especially if the house is vacant, you might suggest that they rent the home out under the management of a professional property manager until the market picks back up.
For seller's who have little or no experience in the role of "landlord", there are a host of negative assumptions to overcome. "Tenants will destroy my house", is a common one. And as with any situation that implies dramatic change--or at least the perception of dramatic change--human nature is to resist said change...
Just the same, renting the house to tenants is often the best possible alternative to a down and out seller. I work at one of the few truly full-service real estate companies in Jacksonville--and we've seen time and time again how relieved many of our "sellers" are to have income from their property or properties. Sometimes, and particularly in this market, renting the property out is the only way keep the seller from losing their home to the bank.
Of course, this is not to say that the seller's apprehensions about turning their home into a rental are wholly unfounded. There is a certain degree of risk and uncertainty in renting a house to tenants. This is exactly why REALTOR's who do not specialize in rentals or property management should develop a relationship with a REALTOR who DOES. (Of course, I recommend discussing this with me personally, but you should at least find a Property Manager who holds a professional property management designation and who is a full-time Property Manager with references)
When you refer your frustrated seller to your preferred professional property manager--someone who understands and can empathize with the concerns and the uncertainty associated with renting a house for the first time, you will have done more to earn that seller's trust than if you held yet another open house for the 10th weekend in a row...
If you have a seller who really needs to do something with their home, you might find out if professional property management is right for them. Only your Professional Property Manager knows for sure if Property Management is right for your seller. Side effects may include loss of frustrated seller phone calls and emails, more free time on the weekends, referral commission, and a positive working relationship with a professional in another area of real estate.
In all seriousness, you could be doing the best thing for your client, get paid a referral when the home rents, and still retain the customer for their future sale.
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