I took a break from “Owner’s Corner” in June, but I’m back. For those owners who are new, this is where I communicate topics related to property management and real estate in general. I was going to take a short video, but then I realized that my new home office has terrible lighting when it comes to taking a video, so instead I’m writing things down.
Recently, I put a rental on the market. The rent was much higher than when I originally talked to the owner just a few months ago. Even with the higher rent, I got a lot of interest, and I was able to have it rented quickly. While I want to take the credit, the reality is that the rental market is very hot. One thing I can’t help but notice is how slow applicants reacted after the rental hit the market. Even real estate agents who need to know what is going on with the market call/text/email me a few days after it got listed. They need to contact me within a few HOURS. Also, most of them don’t call me but just email me or text me. The problem? They won’t be able to know how I pick the renter. Different agents do different things when it comes to picking the renter. So how do I do it?
You might think that I pick the one that is the most qualified out of all the applicants. But that’s not actually how I pick. I go first-come-first-serve. I pick the one that saw the property, qualified, and filled out an application. There are several reasons for this.
- The first reason is fair housing. By doing the way I’m doing, I’m not “picking” anyone but just taking the one who first qualified.
- The second reason is qualified means qualified. In other words, if my standard is XYZ, and if someone meets or exceeds the standard, why not take that person? Even if I wait for someone whose standard is higher, you still get the same amount of rent!
- The third reason is speed. If I wait for X days to get as many applications as possible, obviously it’ll take some extra time.
- The fourth reason is how do you pick the best one? If you have someone with great income but not so good credit vs someone with OK income but great credit, which one is better?
If you are still not convinced that my way is a good way, take a look at the survey below. Most of the people who voted below manage way more properties than me with way more experience. This is from all around the US. As you can see, more than 85% the property managers who voted do the same thing as I do.
Since early 2020, a lot has changed due to the pandemic, and thankfully the real estate market is doing really well. I don't know how long this will continue, but personally, I am bullish in the long run when it comes to housing in general. I am planning to buy more rental properties this year. As you know, bought right there are so many benefits of owning rentals, it's hard at least for me to think of a scenario where I'll end up losing money in the long run. Life throws curveballs at us all the time, but let's be thankful for this hot market while we can.
