Just wanting to rent...

[Jason (AL) 1]

Hey Michael,

 

Do you offer any of your rental/marketing services whereby a

FRBO is ONLY interested in renting their house?

Meaning, you've asked them if they're interested in selling

at the end of the lease and they say "no".

 

You just drop it there or try for more?

 

Reason I'm asking, is that I've got a couple or 3 that have

expressed this, and was wondering if I should offer

my marketing assistance to get their houses fill with tenants.

A little of something is better than all of nothing, I suppose.

[Tmartinloan 0]

I see what your saying you would at least like to make some money rather than nothing. I guess you could rent and then sublease to a tenant for a fee. I dont know why that would be a problem. Maybe someone else has some input.

 

 

 

Thomas

http://www.fhamortgageprograms.com/

[MichaelC 160]

Jason, most every deal I get these days the homeowner is open to selling, a lease purchase, or a straight rental. I'll take whatever I can get. Meaning if the replies are for renting, (and they usually are nowadays), I'll go with the flow. I charge half a month's rent. No biggie, but it's better than fighting the market and getting nothing but a pat on the back for effort.

[Jason (AL) 1]

Yeah, that's what I thought.

 

So what's your reply, to get the ball rolling in your efforts

to get some beer money, to the owners?

 

Thanks!

[MichaelC 160]

I explain to the homeowner that market conditions being what they are, we receive many inquiries these days for straight rentals.

"Is this something you would consider, Joe, in an effort to get this deal done more quickly?" In most every case the answer is yes. If not, they'll usually have a change of heart after another month's mortgage payment.

[FosterCA 0]

I explain to the homeowner that market conditions being what they are, we receive many inquiries these days for straight rentals.

"Is this something you would consider, Joe, in an effort to get this deal done more quickly?" In most every case the answer is yes. If not, they'll usually have a change of heart after another month's mortgage payment.

 

Hey Michael C

Something is better than nothing and this helps to stay in touch with the homeowner.

Please elaborate on your Straight Renting. What does your service include? Do you charge

the homeowner and the tenant? What does your agreement look like? Many Thanks!

[MichaelC 160]

Not much different than working a CA for a lease purchase. I market the property, take the calls and emails, direct the legitimate prospects to the homeowner or whoever is showing the property and hope they bite. If they do I collect my agreed to fee, usually one half of one month's rent. The paperwork is simple, as well. A lease agreement between the homeowner and I, and an assignment agreement to pass the deal off to the new tenant.

[Jonathan RexfordFL 8]

I have 10 of these right now. Some are CA lease options. But most are rentals. Just got to get them filled.

 

http://www.jonsellahome.com

[Guest jvmccall]

I think I would respectfully disagree with Michael C. My time & experience are too valuable to do all this work for the seller and only collect $600 (if the average rent is my target market is $1,200). If you are marketing properly and if you have a little patience (and if you are finding the right houses that will fill fast!), would you rather make $5,000 or $600?

 

IF you insist on finding regular tenants for sellers, why not at least collect a whole month's rent? Don't sell yourself short. I just found 4 tenant buyers on 4 CA's last month, and it took me an average of 2 weeks each. Yes, I get a lot of calls asking if I would just rent the properties, but I tell them no. The key is marketing, marketing, marketing - bandit signs, craigslist every day, building your buyer' list, etc...

[Jonathan RexfordFL 8]

I think I would respectfully disagree with Michael C. My time & experience are too valuable to do all this work for the seller and only collect $600 (if the average rent is my target market is $1,200). If you are marketing properly and if you have a little patience (and if you are finding the right houses that will fill fast!), would you rather make $5,000 or $600?

 

IF you insist on finding regular tenants for sellers, why not at least collect a whole month's rent? Don't sell yourself short. I just found 4 tenant buyers on 4 CA's last month, and it took me an average of 2 weeks each. Yes, I get a lot of calls asking if I would just rent the properties, but I tell them no. The key is marketing, marketing, marketing - bandit signs, craigslist every day, building your buyer' list, etc...

 

 

I never said half rent. But these deals are easy and don't take bandit signs and a lot of marketing except setting up the process.

[Jason (AL) 1]

I can see the point of them not bringing in the amount of $ that CAs bring, but

you have to consider Michael's market, seeing most sellers aren't in the position

to sell or cannot sell.

So, that limits things quite considerably.

 

No need to let that email go to waste.

 

On the other hand, I'd much rather do CAs given

their eventual income vs. just marketing for rentals.

Then again, anything's better than nothing.

[MichaelC 160]

jvmccall, actually we do agree. I'm not suggesting going the straight rental route as a business model. What I am saying is that if I am approached by a prospect who only wants to rent, and I have a homeowner willing to do so, it is counterproductive to turn away from that. In my area, where prices have fallen 40% in two years, many folks don't want to buy, fearing further declines. This could be one of those times where renting makes better financial sense than does buying.

Would I rather pocket $6K than $750? Uh. . .yeah! But I'd also be foolish to walk away from that $750 and make nothing for my marketing efforts. I don't show the properties, I don't place signs. Like JR said, these deals are generally quick and easy. Strictly free online marketing to get the deal done. No sweating, no callouses on my pretty hands.

And as for the half month's rent, experience has shown that is the price point that gets the homeowners to work with me. If I want to be Agent-like, and try and get the full month's rent, they are going to want me to do the showings and stuff. I can do more deals with less effort, and in the end make more money doing it my way.

[FosterCA 0]

jvmccall, actually we do agree. I'm not suggesting going the straight rental route as a business model. What I am saying is that if I am approached by a prospect who only wants to rent, and I have a homeowner willing to do so, it is counterproductive to turn away from that. In my area, where prices have fallen 40% in two years, many folks don't want to buy, fearing further declines. This could be one of those times where renting makes better financial sense than does buying.

Would I rather pocket $6K than $750? Uh. . .yeah! But I'd also be foolish to walk away from that $750 and make nothing for my marketing efforts. I don't show the properties, I don't place signs. Like JR said, these deals are generally quick and easy. Strictly free online marketing to get the deal done. No sweating, no callouses on my pretty hands.

And as for the half month's rent, experience has shown that is the price point that gets the homeowners to work with me. If I want to be Agent-like, and try and get the full month's rent, they are going to want me to do the showings and stuff. I can do more deals with less effort, and in the end make more money doing it my way.

 

This subject has some value and my Scottish proclivities never let me pass up $$$.

What minimum services will help a landlord for what minimum charge? As a start, one

source to get a report developed from a credit bureau, criminal back ground, evictions,

employment, etc. Better and cheap marketing for a good tenant. Showing of the house only for an increased charge. I am not suggesting becoming a Landlords Association but there must be something’s we can do better and cheaper without making it a main business plan.

Lets hear it from you landlords and L/O market people.

[Guest jvmccall]

Would I rather pocket $6K than $750? Uh. . .yeah! But I'd also be foolish to walk away from that $750 and make nothing for my marketing efforts. I don't show the properties, I don't place signs. Like JR said, these deals are generally quick and easy. Strictly free online marketing to get the deal done. No sweating, no callouses on my pretty hands.

 

MichaelC - thanks for your reply. I am assuming that you live in FL or CA? I guess I can understand your perspective then. If you wouldn't mind sharing with us more details on this strategy... how many houses a month on average are you finding regular tenants for? If you are doing a lot of these quickly and easily, I can see why you like them. I am just trying to figure out if it's worth it for me where I live. Being in St Louis, where the market is pretty stable when compared to FL, AZ, NV & CA, I am finding it relatively easy to lease option a house. But now I am thinking about doing CA's in San Francisco where I used to live. My theory is that you can collect larger option deposits in California.

 

I guess my question is this - in a post-hot market with rapidly declining prices, when you are advertising a lease option home, will you take the first person that comes along that wants to rent? Or, how long are you willing to wait?

 

Thanks!!!

[MichaelC 160]

I'm in Florida, jv. The Poster Child for everything wrong with real estate today. Values have fallen 40% from their peak and continue to go south.

My belief is you have to adjust your approach in business to match the economic environment you find yourself in. If not, you go the way of the dinosaur or, worse, General Motors and I don't want Barack Obama as my boss.

That said, it isn't surprising more folks here are looking to rent, rather than Rent To Own. So I advertise every property, (assuming the homeowner is willing to go either way), for Rent to Own and For Rent. Whoever comes my way and satisfies the homeowner's needs gets the deal.