The Connection Between Property Management and Open Houses
April 1, 2022
Founder / CEO
Open Houses Direct
With more and more investors starting to flock to Arizona to purchase homes, it is even more important for Realtors holding open houses to know the rental restrictions, what the rental prices are in the area, and what the return on investments are on short-term and long-term rentals for the homes that they are holding open. It is also good to find a Property Management company that can help your clients manage their rental properties. Partnering with a Property Management company not only gives you a quick and knowledgeable resource for rental questions, but it is also a great way to stay in the know if your buyer decides to sell after renting.
Why is it then, so important for Realtors who are holding Open Houses to know as much as they can about rental options? Open Houses are not only for selling the home, but are also as we know, for generating buyer and seller leads. Sellers and buyers want to work with knowledgeable Realtors, so knowing what the rental prices are in the neighborhood and what the rental restrictions are is a great way to present yourself as the “neighborhood expert.” In our current market in Arizona, where we are attracting more and more investors looking to add rental properties to their portfolios, it is more important than ever to know all of this information prior to showing up for the Open House. Buyers are also having to get creative as well due to lack of inventory and climbing interest rates. A buyer from out of state might want to purchase now to take advantage of the low interest rates and high rental prices, but isn’t able to move for another 12 months due to personal circumstances. This buyer will want to know what their options are for renting in the neighborhood and will engage more with the Open House Agent if they can answer their questions about renting.
To obtain basic rental information, Realtors can always call the listing agent, though this is not the recommended way to obtain that information unless the Realtor is very knowledgeable about the neighborhood and community. Some listing agents will know that information, and many surprisingly won’t. The easiest way to obtain accurate information on the rental restrictions is by contacting your title representative and asking them if they can send you a copy of the CCR’s. The CCR’s are always good to have on hand anyway, and are very easy to obtain from your title representative. It is also very good to know what the homes are renting for in the neighborhood and the current availability which could determine how quickly the home could be rented out. You can easily obtain this information by looking at rental comps in the MLS. Always be sure to include active, pending and closed listings so you can give an accurate picture of how rentals are going in that particular community.
Once you obtain rental information for the house, you should then be sure to have a good contact for a Property Management Company that can produce a net sheet for your clients on short notice. In a market with low inventory, there is not a lot of time to see a home and then decide to make an offer. Having all of these resources readily available for potential buyers can increase your chances of converting them into clients and potentially getting them in escrow with the home that you are holding open. Good Property Management partners can also keep you up to date on when the tenants are moving and if the current owner is talking about selling. The majority of Realtors will sell a home to an investor, help them find a tenant, and then never follow up with them again. Lead follow up is the one thing that can be one of the hardest tasks for busy Realtors, so engaging partners to help you with follow up is key to growing your business exponentially.
All of this preparation brings us back to why we are holding the Open House; to generate and convert leads, and to sell the home on hand. Realtors who are prepared for their open houses are exponentially converting more buyer and seller leads than they have ever been able to generate with any online lead generation program. Companies like Open House Masters teach Realtors how to run their open houses in a way that maximizes lead conversion and many have a buyer walk in and buy the house from them. This is due solely to the preparation that the Realtor has done for the open house. Open House Masters offers an intensive 3-week course that coaches agents on skill sets that help to convert more leads and Realtors who have completed the course are seeing a 1,000% increase in their lead conversions at Open Houses. Preparation is everything, and knowing what resources to have on hand is one of the best ways to increase the number of buyers and sellers that can turn into actual commissions.