OWNERS.....Put your hands on your head and back away from the property

By
Real Estate Broker/Owner with Gibson Management Group, Ltd.

When our area “sales market” started to “go away”, many rental property owners got anxious about the re-leasing of their rental property.....sometimes to their financial detriment:

$ * Owners of a high-end rental home upon hearing that the landscaping needed some weeding and mulching visited the property over a weekend - the same weekend that the property was being shown by a local Realtor to rental clients who were anxious to see the property after viewing it online.  When the Realtor and her clients drove by the property and saw several passenger cars in the driveway, they thought the home was being shown to other rental prospects and decided to come back later.  When they came back a few hours later and saw the same cars were in the driveway, they thought the home had been rented and the new residents were moving in.  The Realtor did not show the property.

Rather than hiring a yard service to mulch and weed for an approximate cost of $400, the owners’ property sat vacant for an additional month for a loss of $4,000 income.


$ * An owner, upon learning that her home’s 18 year old HVAC compressor needed replacing at a cost close to $5,000, decided to call her property neighbor for a suggestion of an alternative HVAC supplier.  When subsequent  rental prospects viewing the property for the 3rd time realized they knew this neighbor from work, they started asking questions regarding the neighborhood.  During this discussion, the neighbor volunteered that the entire HVAC system needed replacing and the property owner did not have the money to have the work done....needless to say, the “hot” prospects did not rent the property.

Rather than calling local HVAC service companies from the online Yellow Pages and question the quote she received, the owner alerted neighbors to a potential problem with her property which was reported incorrectly to prospective residents.

$ * An owner while arranging for some routine repair work at her vacant home decided to turn OFF the AC to save money on the electricity.  

Rather than turning the AC temp UP and keeping the home reasonably comfortable for summer showings in 90degree temps, the owner saved some money on electricity which cost additional monies in lost rental income, as well as yard maintenance and advertising costs because prospective residents thought the HVAC system was sub-par.

Unintended consequences ALWAYS need to be considered when second-guessing management leasing strategies......

 

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Topic:
Real Estate General Information
Location:
Virginia Albemarle County Charlottesville
Groups:
Best Business Practices
Investing in Real Estate
Investors
Realtors®
VIRGINIA
Tags:
landlord
property management
property leasing
property manager

Comments 3 New Comment

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Rainmaker
206,813
Kathy Hyatt PA
Broward Realtor- Sells Plantation Acres& Jacaranda
RE/MAX Preferred

Great Points need to consider, they are not always saving money when they think they are. Thanks for the post!

February 24, 2010 11:43 AM
Rainmaker
1,076,671
Wallace S. Gibson, CPM
LandlordWhisperer
Gibson Management Group, Ltd.

Thank you Kathy!

February 24, 2010 11:52 AM
Rainmaker
409,412
Michelle Francis
Realtor, Buckhead Atlanta Homes for Sale & Lease
Tim Francis Realty LLC

Wallace, 

I had a client last year that said they couldn't afford to replace the HVAC.  So, the tenants who suffered for too many moments of hot and cold did not release the property once they realized the "owners just didn't get it".  Two or more months rent lost while it sat vacant looking for the next tenant.  Absolutely ridiculous. 

Oh, and I had to fire the owners, as after 16 calls for HVAC, I can't help them!  it's not the way I can ask any tenant to live in the hot south!

All the best, Michelle

February 24, 2010 08:48 PM
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Rainmaker
1,076,671

Wallace S. Gibson, CPM

LandlordWhisperer
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