You have a vacancy, the housing market is stable or even a sellers market and you are receiving many rental inquiries. While interviewing you are turning away very good prospects due to a no pet policy (they even offer to pay a higher rental price.) Don’t overlook the opportunity of pitching the property as a potential sale, assuming you would profit from doing so. This is a rare case of having a potential buyer at your fingertips, without even listing the property!
Factors to Consider When Doing the Flip
- You are already engaged in a a discussion about the property:
In the conversation you will be able to access there financial status. In my case I was beginning to sense a level of frustration by the potential renter, “we are both in good jobs, have good credit and have money in the bank but can’t seem to find a nice place that allows dogs…” My reply was to switch the conversation from pitching the rental unit to pitching the property. Many renters rent out of habit, I showed them the potential savings in owning the duplex property versus continuing their quest to find an apartment that would rent to dog owners.
- You can directly influence the possible sale and save money doing so:
You where already engaged in selling them on the rental unit, now you need to broaden the conversation to the merits of entire property. This takes more time and you should take care to avoid pointing out any flaws in the property. In the above interview I was able to secure a time when they could view the property and could tell that they were seriously contemplating the purchase. If this works you have saved time and if the sale will be handled by a licensed realtor, save about half the commission costs.
In my case I was in a struggle between listing for sale or listing for rent. Having a vacant unit is always a good time to show an investment property for sale but I knew it would take time and did not want to risk loosing income waiting for a possible sale. The plan was to list for sale but take it off the market if I found a good tenant. Flipping a rent into a buy might work as a second option!