Appraising the rent – ABC Realty said we could get $50 more pw?
You did it! You got past step one of the enquiry and the prospective landlord wants you to come to the property to hear about your services. You are prepared, confident and organised. Then after you have appraised the property the landlord says, “But, ABC Realty said we could get $50 more?’...
The most important tip that I can share here is that you must be prepared and be able to substantiate the appraisal you are giving the landlord with a CMA – Comparative Market Analysis. Take a copy of your current rental listing printout, a copy of the rent classified advertising and copies of similar properties listed on public rental websites. Ensure that you highlight the similar properties. This is evidence that cannot be questioned. You can then explain that you appraised the property/rent based on comparable properties on the market.
“Hi Mrs Smith, that is a good question. As you can see, I have based my appraisal on comparing your property to other similar properties. May I ask what did the previous agent base their appraisal on? Do you know how long they have worked in the area or property management? The only reason that I ask this question is that I have found that some inexperienced agents will just guesstimate a rental figure or quote a figure to entice the landlord to choose them. Often what happens then… is the property remains vacant costing you 3 or 4 weeks in lost rent and then you have to drop the rent ‘to the market' anyway. Mrs Smith after seeing the properties that are currently on the market, how do you feel about being able to achieve an extra $50? We also have found from experience that overpriced properties can lead to a higher tenant turnover as they then go in search for a cheaper property in accordance with the market, which results in greater wear and tear. We have also found that overpriced properties can attract less quality tenants who have been unable to rent an ‘at market' property. Are you confident with our rental appraisal?”
Take the time to role play this situation with your team members to build your confidence.
Source PPM Group