Many FORCE members have broadened their scope in recent years and are diving deeper into in the single-family rental market. We asked a few of our enterprising agents who have earned the Single-Family Rental Certification from OwnAmerica to share some of their expert tips for working with investors.
Here’s what they had to say:
Larissa Johnson, Broker/Managing Director, 1st Global Realty, LLC
The No.1 thing to remember when working with investor clients is that agents must do their homework and keep in mind that investor clients are savvy and already know what return they’re looking for going into a sale. Agents must always be prepared to recite their return information to potential investors.
Timing is an important factor for investor clients. Investors typically do not mind delayed closings because the properties will be gaining equity. At the same time, however, the funds are appropriated for the investor’s property of choice, so they might consider using them for another property to keep inventory moving.
Justine Jimenez Garcia, Broker/Owner, Countrywide Properties, Inc.
Try to offer sign-on incentives for your investors as a “bonus” for signing their property into your rental department, such as free marketing services or reduced monthly management fees for properties purchased through you.
Today’s investors respond to strong, discounted maintenance plans on their rentals. Offer maintenance plans through your trusted vendors on things like the HVAC system or pool equipment. A working relationship with professional vendors in your area is of the utmost importance.
When working with investors, take the time to learn their future goals for their properties. Will this be their future retirement home? Or is it just a short-term holding for quick monthly turn around? Offering yearly CMAs on their properties reassures the investor that you are on the same side and want to maintain a relationship for any future sales.
Working with investors requires specific knowledge of up-to-date market values. Rental properties can fluctuate greatly during the year due to things like school schedules, weather, and amenities. Know your clients.
Barbara Kuzma, Broker/Owner, Kuzma Success Realty
It is important to know if your investors are handy with fixer-uppers or if they need units already in good condition that can be rented as soon as possible.
Background information such as rental history and maintenance repairs done in the last three years can be valuable in helping investors make profitable decisions. Find out as much as you can about your client’s properties to better assist them.