In my 9 years of buying, selling, renting, and running a property management company, the question has never taken on such a diverse answer. However, I believe it’s a question more and more homeowners are asking. I became a property manager in Gwinnett County, Georgia because homes were not selling and more and more homeowners were getting foreclosed on.
We all remember the days of listing the home with a Realtor, sticking a sign in the yard, and showing up for a closing 6 weeks later. Real Estate falls into two categories for most homeowners. The first being the house and the other being a payment. Most homeowners fit into either one of these categories.
Today, I highly recommend homeowners develop and stick to a plan to solve their real estate challenge. In today’s market, it is a challenge. Develop a plan in the beginning and stick to it so the emotion doesn’t take over if the home hasn’t sold.
My recommendation is to develop a plan starting with the end in mind. Let’s say, the home needs to be sold in 180 days (6 months). Put the home on the market for four months at the price point where it should sell. At the beginning of the 4th month while continuing to list the home, offer the home as a Rent to Own with a rental property management company who specializes in Rent to Own and Lease Options. At the beginning of the 5th month while continuing to list the home, offer the home for Lease with the same property manager. Why a property manager and not the Realtor? A Realtor specializes in selling homes not managing rental properties. My experience tells me the conflict arises when to show a home for lease or a home for sale. There is a huge difference in a rental management company who manages 100 rental properties versus a Realtor who may manage 5 because the home did not sell.
If the home does not sell, be sure to structure the Rent to Own or Lease Option with the intent of selling the home. Many homeowners as well as investors fall for the trap of over pricing the home and asking for too large of a monthly payment. My experience tells me the lower priced payment with the fair market priced home will close 35% more often. This is where the knowledge from a property management company can help. They can give you fair market rents, option payment advice, and terms that are most often being used. Remember the goal, to sell the home.
When it comes to renting or leasing the home, you can manage it yourself or hire a property manager. If you go the DIY route, remember to modify your homeowner’s insurance, get an umbrella policy, get the correct forms, and get educated on the Landlord Tenant Laws. Skip either one of these and the cost gets expensive.
This isn’t a time to allow a home to languish on the market. Homes are selling and you will know very quickly how your home competes.
4th Avenue Property Management is a property management company in Buford, Georgia. We offer Property Management Services specializing in rental property management in Lawrenceville, Buford, Suwanee, Sugar Hill, and Dacula Georgia. If you are currently selling or renting a home, give us a call at 770-826-2426.