timmym22 0 Report post Posted October 1, 2009 Hey MC,I am thinking about opening up the option to find just a renter for sellers. I know MC that you do this as well. How do you structure the deal? What is your fee? how do you handle the security deposits? I am assuming it is just like a CA deal with a lease option. I have talked to many sellers that just want to rent and they ask me if i do rentals as well. thanks Share this post Link to post Share on other sites
MichaelC 160 Report post Posted October 2, 2009 Timmy, this very topic has been discussed numerous times here. If you do a search for "rentals" you'll find a number of threads that discuss the process.My fee is whatever I can negotiate. In my area, I find the price point that keeps homeowners happy is one half of one month's rent. In some cases I've received more. Share this post Link to post Share on other sites
jhanson8 0 Report post Posted October 3, 2009 My fee is whatever I can negotiate. In my area, I find the price point that keeps homeowners happy is one half of one month's rent. In some cases I've received more.This is just for finding a tenant, right? You handle it like a CA, with the owner taking over as landlord and you out of the picture? I've been giving this method a run the last week or so and I think it may work out. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted October 5, 2009 That's correct. I am simply a marketer for the homeowner. For less than a full month's rent, they are doing the showings and I'm being paid when they agree to a tenant I have provided. I'm out of the loop after that. Share this post Link to post Share on other sites
skalember 1 Report post Posted October 5, 2009 My fee is whatever I can negotiate. In my area, I find the price point that keeps homeowners happy is one half of one month's rent. In some cases I've received more.This is just for finding a tenant, right? You handle it like a CA, with the owner taking over as landlord and you out of the picture? I've been giving this method a run the last week or so and I think it may work out. It works just fine. I have two rentals I'm working on right now which will both net $1100 - $1250. That would be $3400 total in the last 30 days alone for about 6 hours of work on each. Since I get many more "no's" than "yes" when offering to do a LO I always offer it to anyone who replies to my e-mials I send out. In the short e-mail I thank them for the reply and tell them if they every need help renting out their home I do property management and charge a flat fee to market their property, do background checks, showings, etc. I also tell them I don't charge a 10% monthly commision, no startup fee, no marketing fee, signage fee like traditional prop mgmt companies do. It's simply a service i provide for busy landlords. also they don';t have to pay me directly since I collect it from the tenant so no out of pocket expense for them up front and i only get paid when i get their home occupied. I work 7 days a week until I find a tenant. If they think it's too much I ask them what's fair to them and the lower they go the more services I take away. If they go too low then I collect my fee up front and simply market the property for them and send them tenants. I don't have a problem with half of first mo's with nearly all landlords I contact. It's a great back end business to your CA's or SLO's. Somethin's better than nothing Share this post Link to post Share on other sites
Jason (AL) 1 Report post Posted October 5, 2009 Nice going Steve!Are you going the lease assignment route or are you using a consulting agreement? Share this post Link to post Share on other sites
jhanson8 0 Report post Posted October 6, 2009 That's correct. I am simply a marketer for the homeowner. For less than a full month's rent, they are doing the showings and I'm being paid when they agree to a tenant I have provided. I'm out of the loop after that.That's exactly what I want to start doing. My trouble has been finding people who only want the paperwork and screening done. Everyone I've talked to wants me to do the whole thing, repairs and all - not gonna happen. But, I figure that if I can get them higher quality tenants then they may be more open to landlording themselves. We'll see... Share this post Link to post Share on other sites
MichaelC 160 Report post Posted October 6, 2009 That's a nice presentation package, Steve. Where do I sign? Share this post Link to post Share on other sites
skalember 1 Report post Posted October 6, 2009 Nice going Steve!Are you going the lease assignment route or are you using a consulting agreement? I use a consulting agreement for all rentals. The way i collect directly from the tenant is I tell them once they apply it's a $30 application fee and 1/2 of the deposit to hold the property during the screening process. If they don't qualify the money is fully refunded, however once a move-in date is established there is no refund as the property is taken off the market. At lease signing they pay the remainder of the deposit and first mo's rent. I write them a receipt with the details and we both sign then once I run background I have a phone call with the landlord to go over the results. He makes the final say and then I provide the tenant and landlord with each other's contact info and I'm out...easy money Share this post Link to post Share on other sites
skalember 1 Report post Posted October 6, 2009 That's a nice presentation package, Steve. Where do I sign? Been working well so far. The funny thing is sometimes I hear back from people I contacted over a month or so ago that haven't been able to rent out. The two I signed agreemnts with just simply wanted me to bring them leads so for a quick $300 I took some pics of their property, threw a sign on the lawn, and wrote 3 ads a day on CL and one a day on backpage and the first had a tenant in a week, the other was just under two weeks. Collected my fee up front for a total of about an hour and a half of work Now if i could just do a CA, dammit Share this post Link to post Share on other sites
MichaelC 160 Report post Posted October 6, 2009 Now if i could just do a CA, dammit You will, Steve. Just keep contacting those homeowners. In the meantime, you're making some easy money. Share this post Link to post Share on other sites
