Renters HAVE Budgets Too! Expecting Landlords to Take Them into Consideration is UNrealistic!

By
Real Estate Broker/Owner with Gibson Management Group, Ltd.
http://actvra.in/Bmv

I just showed a vacant townhouse to a man who is buying a business in the area and needs to move his family within a few weeks.

He has viewed the property online and I met him at the property at 11A today and showed it to him...VERY CLEAN, he says!  VERY CONVENIENT to his new job, he says!  VERY GOOD LOCATION for his family and small son, he says!

.....and * wait for it * the rent is OUT of his Budget.  I asked what his budget was and he said he wanted a $100 per month reduction.  I SMILED as I advised him that in 2 months, the rent would INCREASE $200 per month if the property was available this summer.

This is a man who drove 3 hours from his current home to see the unit.  He has known the rental price range since he first saw my sign on the unit almost a week ago.  He has seen the unit online, talked to me twice and made a viewing appointment.

If he could NOT afford the unit, he sure has WASTED a lot of his time, ga$ and energy.  He then tells me he is looking at another unit and I provide him with application paperwork for he and his wife to complete if they want to rent the property.  The other unit is smaller and older that the unit I represent. 

If he wants to proceed with renting the unit at the current rent, he needs to do so ASAP.  I'm showing it 2X on Saturday.

close

Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. Cory Barbee 03/28/2011 04:42 PM
  2. Nicholas Goglucci 03/28/2011 05:43 PM
  3. Donald Bradbury 03/28/2011 05:46 PM
Topic:
ActiveRain Community
Location:
Virginia Albemarle County
Groups:
Property Management
Best Business Practices
Investing in Real Estate
Rental Agents and The Single Family Rental Market
VIRGINIA
Tags:
charlottesville
home for rent
home for lease
property management
rental property leasing

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Show All Comments
Rainer
11,855
Angela James
Prudential Bob Yost Homesale Services - Hanover, PA

I find this so indicative of the problems in our industry.  There are so many people out there that want something they cannot afford and are not shy about expecting someone else to help pay for it.  On occasion I have even heard from sellers and buyers alike that I should reduce my commission so that they can get what they want out of the sale/purchase of a house.  At what point does their desire to buy/sell something become my financial responsibility?  I do a good job for every transaction.  I have even handled a purchase of a mobile home for a young couple where the home inspector made more in his 2 hour inspection than I made on the entire deal.  That is part of my job -- happily done.  But people aren't shy any more about asking for something out of someone else's pocket. 

March 29, 2011 07:18 PM #139
Rainmaker
334,158
Debra Gould
Staging Diva / Six Elements Inc. - Toronto, ON
The Staging Diva

My guess is he's waiting to see if there's any flexibility on the landlord's end. Perhaps he's moving from a market that's hungry for tenants.

Wonder if before heading out there to meet him what would have happened if you re-stated the rent and asked if it was within his budget.

March 29, 2011 08:28 PM #140
Rainmaker
191,173
Joy Carter & Jeff Booker Brother and Sister Team
Keller Williams Partners Realty-GreatFloridaHomes Team - Plantation, FL
Trust Your Family's Move To Our Expertise!

Around these parts here!  ;-) I would NEVER Be Surprised of someone offered $100 less on a listing.

That would depend on how many price reductions we've had (usually none) to the Landlords motivation.

In your case, I would be asking myself the same thing.....YOU DROVE ALL THE WAY OUT HERE TO DO THIS?!?!?!?!   Joy

March 29, 2011 10:39 PM #141
Rainer
68,804
Robert Courtney
Lihue, HI
Century 21 All Islands, RA, CDPE, MCRE, CIAS

It is all in the game!  You handled the situation professionally, as usual.  Ball is in his court!

March 30, 2011 12:30 AM #142
Rainmaker
100,399
Jayson Hoffer
Jayson Hoffer Insurance Agency Inc. - Tempe, AZ
Mesa AZ 480-518-0747

I tried negotiating on my old office lease. My rent was 1250 a month plus NNN. I was paying 1500  amonth. I asked for a rent reduction. I basically stated that if they did not reduce it, I would move early, have to pay the 25% early termination fee to save $700 a month. They did not budge, the place has been empty for 3 years. Some rent is better than none, isn't it?

 

 

March 30, 2011 12:44 AM #143
Rainmaker
1,077,587
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Jayson * tripple NET is entirely different from an ALREADY UNDERPRICED rental home with 300 new families moving into the area over the next 6 months....apples and oranges

March 30, 2011 05:30 AM #144
Rainmaker
275,191
Steven Pahl
Keller Williams Tampa Properties - Tampa, FL
Real Estate Consultant Tampa, FL 813-319-6423

I guess it would depend on how long the unit has been vacant and what are the owners thoughts. Did you contact the owner with the counter?

March 30, 2011 10:10 AM #145
Rainmaker
1,077,587
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Steven - property managers are not sales agents.....we have employment agreements with specific duties.  I would not discuss this with the property owners as there is no approved application to discuss with them....

March 30, 2011 10:19 AM #146
Rainer
203,880
Eugene Adan
Adan Properties, Carlsbad, CA (760) 720-9710 - Carlsbad, CA
Carlsbad Real Estate

Wallace,

For him to think that the market supports his price point is pathetic even at pre-summer level.  It was a likely a poor negotiating tactic but that doesn't fly here either. 

March 30, 2011 10:40 AM #147
Rainer
19,547
Tina Beasley
Virginia Capital Realty - Richmond, VA

Way to tell him Wallace!  If he wanted a rent reduction, then he should have stated that PRIOR to meeting with you.  Some people just do not VALUE our time.  That is one of the huge struggles that we face in this business.

Just wanted to give you a virtual "high five" for standing up for your clients and knowing your market.

Tina Beasley, Associate Broker

March 30, 2011 12:36 PM #148
Anonymous
Anonymous
karen Lupo

It's aggravating to have your time wasted and stupid of him to play games.  Some things never change.

March 30, 2011 08:28 PM #149
Rainmaker
217,165
Patricia Beck
RE/MAX Properties, Inc., GRI, CDPE - Colorado Springs, CO
Colorado Springs Realty

How frustrating. With a strong rental market in most areas, he is going to have a hard time finding a landlord willing to negotiate when they can find someone else willing to pay the rent amount.

March 31, 2011 07:08 PM #150
Rainmaker
1,077,587
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

It is not longer a TENANT market....landlords can dictate terms and rent as well as their criteria for creditworthiness

March 31, 2011 07:24 PM #151
Rainer
24,450
Debra V. Edwards
edwards builders and realty, inc. - Cashiers, NC
Realtor/Builder, Cashiers, NC., Highlands, NC., Glenville

Wallace: I, too, have been a Landlord for many years and whether good or bad times, I have had some worthy tenants that I have dealy loved....BUT ... it only takes one, the last couple that I had, to make me get out of the rental business.  I am so glad that I did.  I now have turned that rental unit (after gutting it) into my office.  I never negotiated my price, as I knew exactly what I had to get to keep the mortgage paid, but I also knew what was the going rate in the market and how my little, home, compared to others. 

You said it:  "You snooze, you lose", and it sounds like he couldn't afford the place, which makes me happy for the LandLord.

April 13, 2011 02:44 PM #152
Rainmaker
45,106
Nathan M
Rentec Direct Property Management Software - Grants Pass, OR
President (Rentec Direct)

I get the feeling a lot of renters want to just see what they could afford if they could only squeeze a couple hundred more out of their budget for housing.  I see similar things a lot and nothing is worse than taking the time to go show a property that has the price clearly posted on all listings and the renter say they can't afford it.  What gives. =)  Makes me sometimes wish it were practical to require an application up-front before showing the property, but that just doesn't work in this area.

August 07, 2011 10:07 AM #153
Rainer
126,083
Rich Murray
PMNC, Cary, NC - Cary, NC
GRI, ABR

Oh, the joys of Property Management. Gotta Love It.

 

I received the information you mailed me today. I'll look through it this weekend during the STORM. Thank You.

August 26, 2011 06:51 PM #154
Rainmaker
1,328,163
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
800-309-3414 - Pensacola, Pace or Gulf Breeze, Fl.

Very good Wallace but what waste of time, I always ask if the unit fits your needs are you prepared to sign up today. But that doesn't always work either.

October 03, 2011 10:11 AM #155
Rainer
34,107
Carmen Rivero
Infinity Real Estate Group - Altamonte Springs, FL

Great post, I think most people do not understand how different is the market for rentals. In the Orlando area there is a high number of foreclosures and short sales.  This makes the availability of rental homes lower. The average monthly rental has risen considerably in the last few years.

As the owner of rental property I have to agree that is better to not budget on the monthly rental, unless there is a reason for it. I have lowered the rent for one of my tenants because he was always responsible and because he kept the place in perfect condition. In other cases I have prefered to get a new renter than to lower the rent at all.

March 18, 2012 02:56 PM #156
Rainmaker
123,494
Ricky D. Sadler
Property Management services, Rentals Leasing, Landlord Tenant - Seattle, WA
NARPM 2013 V.P -

Wallace,

I understand- I have a cute little house just listed Friday- Sign went up on Sat 35 calls just from the sign. I got to have it- 35 time on my voice mail on monday

Not one ad or picture telling about  the house anywhere,so they have no idea what the price is or the layout of sqft but they have to have it

I think people have lost it!- mindless calling for entertainment AT  least  your guy got a ride out of the deal-

 

Ricky D

www.rd-house.com

April 18, 2012 04:19 PM #157
Rainmaker
1,077,587
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

I'm getting applications with no income stated - like they can't look at their pay stub or they don't know their income

May 19, 2012 07:07 PM #158
Show All Comments
Rainmaker
1,077,587

Wallace S. Gibson, CPM

LandlordWhisperer
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