Leasing VS. Selling

By
Real Estate Agent with Clarity Street Realty 1999093366

Here in St. Louis we have some inventory to deal with that simply is not moving.  Recently we made a presentation to our agents on the benefit of offering a lease on those properties that won't sell.  Have you experienced this yourself?  How are you handling it? 

 

Here are some links we provided at our meeting for additional places to advertise Rentals.  A Warning our local MLS has requested an MLS Exemption form for "Lease" property that is not in the MLS that you are advertising.

 

RE/MAX Results Rentals

 

Marketing Rental Property

 

·         Craigslist.com - Free most well known

 

·         Backpage.com - FREE Riverfront times web page

 

·         Rentals.com - Currently showing 265 rental opportunities in St. Louis.  This site does require you pay an advertising fee for each property each month of $39-$99

 

·         Rent.com (An Ebay Company) Free to list but charges $389 per successful lease

 

·         Rentalhomesplus.com - Expect to pay $40-$90 per property one time fee

 

·         Oodle.com - FREE -Pulls info from 80K websites

 

·         Rentalhouses.com - $49-$199 for 30- 90 days unlimited

 

·         Thatrentalsite.com - FREE Fast cross-posting on Google, Move.com, Craigslist, Oodle  etc

 

·         Viddler.com - More of a YouTube but videos of your rentals and listings all for free.

 

·        Rentomatic.com - Full service site- Tenant page where they can log on to read any updates or news, send online billing to renters online payments processed for you and a lot more.  They offer a free service or the upgraded pack which costs $30 per month

 

So tell me about your rental experiences

Comments (5)

Chris and Maria Jeantet
Coldwell Banker C&C Properties - Redding, CA
Redding CA Real Estate Couple

good stuff Carolyn...some great tips!

Aug 20, 2008 07:12 AM
Stephanie Varney
Lichtenstein Rowan, REALTORS - Rocky Mount, VA

So I found a property for sale that the owner was willing to do a lease with option to buy, because originally the clients were looking for a home that accept a subject to sale with early occupancy.  Which means I will be unlikely to see any commission.  How can agents help people out, and still get compensation?

Aug 20, 2008 07:33 AM
Keith Zimmer
RE/MAX Results - Saint Louis, MO

This is why you are the best manager in the St. Louis area you keep helping your agents to find new ways to help their clients and make money.

Stephanie as far as how you get paid? ask your broker but you should get something for the lease and then more when the buy option comes in and they purchase the home. becides that you now have two different people that are happy because YOU have solved a problem. 

Aug 20, 2008 08:10 AM
Carolyn Mantia
Clarity Street Realty - Maplewood, MO
Excellence is our goal

Some more on leasing.......  Think outside of the box

Here is the thing with leasing.  Some properties simply WILL not sell because of the sellers inflated price.  Good or bad some of those issues will come up.  So how do we keep the seller happy and referring us business?  Leasing is a good opportunity to offer a solution of the current problem, which could be making the payments.  In a year you have a possible sale in a better market as well as now there is a renter in the property who you can educate on the buying process in the future.

So how do you get compensated?  Typically you can see compensation of about one months rent for a 12 month lease.  If advertised on your MLS you need to split that amount with the buyers agent.  True it is NOT a lot of money and I don't think it is the place to focus your business but a few leases for clients who simply cannot sell could be a few tanks of gas.  Not to mention the good "Karma" you create for yourself with both the buyer and seller.

Another thing to consider is to wherever possible to get a lease option in place.  This assures you a commission if they do exercise the option.  The way to be compensated in that scenario is to be paid the rental commission upon the executed lease and that commission will be credited in the event that the option is taken advantage of, giving you 2 pay checks!!! Yippeeee  Kewl Eh?

Aug 26, 2008 04:56 AM
Anonymous
Anonymous

What about properties which are hard to sell, whos owners want to buy but are concerned about two mortgages?  I am thinking of offering potential "contingent" buyers and idea of a lease /sale listing on their current home to get them at least a cash flow from the rental to allow them to write firm on another property instead of waiting for their home to sell.  I know it is less money up front, but it will allow you to get another sale and a better deal for your buyers! 

Aug 26, 2008 08:15 AM
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