Are You Reluctant to Rentals?

by

rentLike 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?

Tags: , , , , , , , ,

13 Responses to “Are You Reluctant to Rentals?”

  1. Dennis Doll Says:

    Thanks Dana, What great way to earn extra income!
    I just rented the same town home for the 6th time in 6 years! The commission earned in this time is double what I would have earned by selling the property!

  2. Pat Viohl Says:

    I too have found myself handling rentals for clients…… it’s not a big money maker, but I have found that if you help out when a homeowner needs to rent a property, or a “future buyer” needs to rent for now, they WILL remember you when it comes time to take a bigger step, i.e., selling or buying a property. In fact, my second transaction as a realtor came when someone replied to a rental I listed; as we talked, this guy decided that instead of renting again, perhaps he should look into buying a starter home, and that is exactly what I helped him do. If you are indeed a realtor who puts the best interests of your client ahead of your own, then there are certainly going to be times in the current market when you will suggest that a homeowner “wait out” the market, and rent his/her home out instead.

  3. Arthur Harris Says:

    Eventhough there is not a lot of commission in rentals, sometimes you really have no choice it is what the prospective seller/buyer decides to do and you have to honor their desire. They hopefully will not forget how you helped them with the rental and when they are ready to sell or buy their home you will be asked to assist them.

  4. Danielle Alleyne Says:

    Hi Dana,

    Currently our website does not allow rentals we have listed to show on the site. Any ideas on how we can make that happen?

  5. Patsy Pardue Says:

    Yes Dana,

    I have in the past two years handled more rentals than in my 25 years of real estate. It is certainly a different market now. Jamie and I just spent days helping our seller find a rental in East Cobb as he did not want to purchase at this time. I know he will call us when he gets ready to buy. Several of our listings are For Sale or for Rent. As I always say, give the buyer/seller great service and they will always come back to you.

    Patsy Pardue

  6. Jean David Says:

    I love working with renters. I myself have over 15 years dealing with rentals and Being a landlord! I would rather consistantly be enveloped in rentals than hoping a potential buyer can aquire a mortgage! this weekend alone I have 2 clients who both need Oct 1st occupancy in a retal or lease purchase. They have their choice of homes, and the history and background to bargain, and get what they want. What a great feeling at the end of the day !

  7. Cathy Witherspoon Says:

    Danielle is correct. It would be nice to be able to put our lease listings on the Metro Brokers website.

  8. Bill Linkwald Says:

    Rentals are a great way to find Buyers. Last year, I worked with several tenants, two of which have already become Buyers. Business comes from many many places.

  9. Quentin Latham Says:

    As a new agent (7 months in) the only business I have had has been rentals. Hey, some money is better than no money!

  10. Cassidy Norton Says:

    As a newer agent I have had the oppurtunity to work with renters and I always try to see if they would like to purchase a home. Most are not ready or are trying to move towards that goal and by helping them through the renting process successfully I know that I am ensuring a future commission for myself.

  11. rohit kumar Says:

    The post kind of helped me. Well How you get ideas for such posts. sorry if it’s out of topic.

  12. moraima acosta Says:

    i’m relocating and i would like some info about renting a house

  13. Jean David Says:

    Feel free to email me your contact information and I will be in touch with you….my email is Jean.david@metrobrokers.com
    Looking forward in helping you with your relocation !

Comments are closed.


%d bloggers like this: