Like tectonic plates that move under the earth’s crust, we’re now seeing a shift in the choices of housing for people who are relocating because of their job. Instead of buying a home, there is an increasing number of corporate transferees who are choosing rental and lease options.
Why? And how will this affect our industry?
Well, the primary reasons transferees are renting are:
• They can’t sell their home in their departure city
• They’re afraid to make a commitment to a home purchase because they don’t know how secure their jobs are
• They may only be on a temporary assignment for a year or less.
And while I’m on the subject of temporary assignment, I want to emphasize the notion that temporary assignments will be a permanent fixture in the relocation industry in the future. The reason is two fold. It saves the employer a lot of money as it costs on average of around $70K to move an employee to a new location. And secondly, with communication technology getting more and more sophisticated every year, there is less need to move their employees.
What does this mean for you (the Realtor)? Well, it’s a shift in the way you do business. You need to be open to dealing with rentals (not just sales). Your customers are going to begin asking if renting is the best option…if they’re not already.
You’ll need to become more active in the rental market. That means becoming educated on what is available in rentals in a given area, learning to negotiate a commission on rentals and staying in touch with your customer, as they might become a buyer in the future.
If you have a seller who is having a really difficult time selling and they must move away from Atlanta or maybe they want to buy a different property for whatever reason, you should council them on renting their current home to a prospective renter. You can help them find a renter and earn a rental commission now. Then, when the market is better they will probably want to sell. Since they know that you’ve already helped them with a temporary solution, you will probably be their choice to market the home for sale.
Now is the time to boost your knowledge on rentals. What percentage of your clients already ask if renting is the right option? How do you respond?