A.D. Cantelmo Property Management
Our Business is Property Management in Orange County California
How to price a home for rent
Anytime I talk to one of my clients about how much to rent
their property for, First I have to understand who the client is. Every client
is different and it is very important that I make sure the client is
comfortable with the information I am giving them. If the client has been with
my company and we have gone through the rental process before, it is easy for me,
because I already understand their situation and their mind set, but if it is a
new client, I have to work on understanding them and understanding their
situation.
The difference in Landlords
I can’t tell you how often people tell me that their Realtor
is not doing enough to rent their property and that they are angry that their
property has been vacant for a period of time. The important part of the
conversation is that they are angry about a vacant property. Now no Landlord
wants a vacant property, but some understand why their property is taking a
longer time to rent, but others just want it rented. The difference is that one
may be comfortable with getting the right price and the right Tenant, but the
other can’t afford to lose rent. The two life situations are different and as a
Real Estate Broker I need to understand that before we move forward.
Pricing conversation
The first thing I do when I sit down with a client and talk
about how much to rent their property for, is I ask them how much they think
their property is worth. Now I do the same thing when I am going to sell a
property, because as much as people will tell me they don’t know, they all have
a number in mind and sometime it takes some doing on my part, but I will
eventually get that number out of them. Why is that important? If as a Broker,
I come in and tell someone their property is worth less to rent then what they
think, and I rent the property quickly, they will always have in the back of
their mind that they could have received more money and that will stay with
them and really hurt the confidence they have in me. Does that mean that I will
agree with them on the price, no, but it does mean that I will listen to what
they say and try and reconcile what they say to their life situation?
Appropriate pricing
Let’s go back and to a Landlords situation and how that will
affect the price I will put on the home for rent. If in our conversation, I
find out that they are losing money every month and that a vacant property is
really hurting their financial situation, Then I will fight to get their
property on the market at a price that I am confident will get the property
rented quickly. I would rather get that
property rented and have the client upset for a while rather than have a vacant
property and have the client be hurt financially.
Now, if I have a client that is comfortable with pushing the
market for a higher price then what the comps say, then I am all in and I love
to push the market up. In fact now, the rental market seems to have no ceiling
and I am pushing just about every home I have for rent and getting it. But
again, when you break new ground, sometimes it takes time and the client has to
understand that and be comfortable with it. I have had clients who actually
drive me crazy by turning down clients who I feel would be a good fit, but they
are looking for something else and they are willing to wait and they accept a
longer vacancy.
A satisfying outcome
So the real question is not how much a property should rent
for, the real question is how much can I get for a property without hurting the
client, and that question can only be answered by understanding who the client
is and what they need to happen. It's easy to give a client numbers and put
the property on the market at the market price, and it is also easy to put the
property on the market at a price higher than the market price and try and get
more money for the client, but understanding not only what the client wants and
expects, but what the client needs is the real trick. It can take some
work to get that understanding, but in the end, you will find that the client
will be satisfied with the outcome.
A.D. Cantelmo Property
Management Specializes in Property Management in Orange County
Ca.