PropertyManagementMaven: Your Rental Home has been VACANT for 6 months and your Agents Has not REDUCED the RENT?

Your Rental Home has been VACANT for 6 months and your Agents Has not REDUCED the RENT?

Our local MLS has 50 DETATCHED homes for rent as of December 1st.  I cruised through them and note the DOM and initial date of the listing.

Many of this listings have been in the RENTAL section of the MLS for months with no rent reduction.  While approx 20% are also for SALE, that means that many listings are ACTUALLY not being marketed FOR LEASE....they are STALE or ABANDONED.

Many of these rental listings may have been OVERpriced to begin with; however, when the leaves started to turn and the heat came on, they should have had a SYSTEMATIC and ROUTINE price reduction schedule to get them rented.

Few are actually posted on our local Craigslist as our MLS does not have a html export feature so these rental listing agents have to DOUBLE input the listing information and photos into a postlets format AND if they do this without watermarking the photos first, the listings are subject to being scammed.

...meanwhile, back at my computer, I am organizing my 2012 rental renewal calendar and organizing my available properties for the SUMMER of 2012.


 Wallace S. Gibson, CPM * GIBSON MANAGEMENT GROUP, Ltd.

LandlordWhisperer

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Comment balloon 11 commentsWallace S. Gibson, CPM • December 02 2011 01:29PM

Comments

Hi

It is amazing why the owners, presumably some are REO, will do this. As you stated, maybe most are walk-away owners? Besides this, I would bet not one has a vacant home insurance rider on their policies making them uninsured as well.

Posted by Curtis Van Carter, Your Napa Valley Broker Extraordinaire (Better Homes & Gardens Wine Country Group) almost 8 years ago

Like any listings, when it is approaching the average listing days and no movement, any agent worth their salt should talk to the owner about price reduction. I have found at too that sometime the agent listed for what is the going rent in the area even though subject is less the average house in condition and location.

Posted by Wale Adewoyin (1st Crown Realty Corporation 503-512-6200) almost 8 years ago

I am fortunate to control the rental price in my management agreement and I AGGRESSIVELY reduce the rent until the market matches it when it is OVERpriced

Posted by Wallace S. Gibson, CPM, LandlordWhisperer (Gibson Management Group, Ltd.) almost 8 years ago

These holidays are traditionally the slowest time of year for leasing Wallace, nobody wants to move unless they absolutely have to.  If it is the same there those owners can count on more vacant time.

Posted by Al Raymondi, Ormond By The Sea Florida - Home and Condo Sales (Ocean View Realty Group in Ormond By The Sea Florida) almost 8 years ago

Wallace, I just did that very thing on a building I bought to rent out.The market always tells us what it will bear.

Posted by Mike Frazier, Northwest Tennessee Realtor (Carousel Realty of Dyer County) almost 8 years ago

WE don't have almost any vacant rentals in Hinckley, Mn.  I wish I had a few.

Posted by Randi Brammer, Accountant & Tax Preparer (Randi Brammer, Acctg.) almost 8 years ago

There was a property manager in Caldwel, Idaho that had similar issues.... Most of the property he managed ended up being foreclosed on and he is out of business.... NMy step mom used him....That is how I ended up managing a 5 plex in Caldwell.

Posted by Debbie Holmes, Gets the job done! (Gold Key Real Estate) almost 8 years ago

Wallace, 

Critical to get rentals leased - vacant cost money!!!   Once you do the math on a lower rent verses two months vacant AND paying for utilities - the lower rent will sound a whole lot better. 

All the best, Michelle

Posted by Michelle Francis, Realtor, Buckhead Atlanta Homes for Sale & Lease (Tim Francis Realty LLC) almost 8 years ago

I can't imagine a rental vacant for 6 months. That is absurd! Marketing, pricing, sales skills all have to be focused on "the goal" of getting qualified tenants as quickly as possible. 

Posted by Mark Delgado, Benicia and Vallejo, Property Management, rental h (houses for rent, Solano County & Glen Cove) almost 8 years ago

Good feedback. You would think it would be very unusual to have a rental vacant for six months. Doesn't happen much in our area.

Posted by Florida Management and Consulting Group Inc., Real Estate Brokerage and Property Managers (Florida Management and Consulting Group, Inc. ) about 7 years ago

That is unfortunate to have so many homes sitting  vacant because of poor management. When a house for rent is also for sale the price should be well below the average market rent because tenants don't want to deal with showings, inspections, or having to suddenly move.

Posted by Dulcey Schuster, Property Management Software (Rentec Direct Property Management Software Tenant Screening) over 6 years ago

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