A.D. Cantelmo Property Management
Our Business is Property Management in Orange County California
Use the same tools to rent a home as you do to sell the
I often get questions about how to rent a home. I have a
client who owns homes in an area that I do not cover and they are having
problems renting a property that they have another property manager helping
them. They asked me the other day why I thought their home was not renting and
they have yet to get a call on the property. I told them that I really needed
to be hands off due to the fact that they are with another company but the one
thing I said to them was that they need to think in terms that renting and
selling homes are not that much different when it comes to marketing.
Some people may laugh when I say that, but if you think
about it, you will understand my reasons for saying that. The money involved is
much different and the timetables are different, but people looking for rental
property are looking for much of the same things that people buying homes are
I was interested in what the problems could be for the
property that my clients were asking me about, so I looked it up and the one
big mistake the other Property Manager was making at least in my opinion was
that it was on some web sites, but not the MLS.
The reason that many Property
Management companies do not use the MLS is that they don’t want to share the
commission that they get from renting the property. Most management companies
charge ½ of one month’s rent when they rent a property and this is not much
money, So for a Management company to have to share that money with another
Broker is difficult, but if you don’t use the MLS, you should at least let the
owner of the property know what your plans are, so they can decide if they want
to use your services. The owner of the property may also want to throw in some
extra money to offer other Realtors on the MLS.
The reason using the MLS is important is that many Realtors
do have clients that are renters and even though there is not much money
involved you are opening up the property to much more potential Tenants then if
you just try and rent it on your own. Another big mistake that Realtors make is
that they offer $100 on the MLS just to get the property on, but they know that
they will not get any Realtors showing the property but it allows them to tell
their clients it is on the MLS.
Most of my properties that I rent, come from a sign on the
property, but I always put my properties on the MLS and I offer at least ½ of
my fee to get Realtors to show the property. I understand the temptation not to
use the MLS, but if you don’t use it, you are taking away the largest tool in
our toolbox as a Property Manager and that is a huge mistake.
Again, renting is not much different then selling a home
and if you as a Realtor don’t work the property with the same intensity that
you do in selling a listing, then you are doing a disservice to your clients.
Just as selling a home, price is a huge factor when trying to find a Tenant and if your property is getting no activity, you need to evaluate your price and adjust. Remember the longer your property is vacant the more money you will lose and never be able to recuperate, even if you get a higher price on your property. Do the math. If you price your property at $2000.00 per month and it should be priced at $1900.00 and your property stays empty one extra month you will lose $1900.00 and if you do after one month get $2000.00 it will take you 19 months to make up what you lost for having your property vacant for the exra month. It is not worth the extra price.
A.D. Cantelmo Property
Management Specializes in Property Management in Orange County