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Do You Want to Lease & The Good Ones Are Always Gone?

April 6th, 2011


Lynn Fredregill, Realtor, * RCR Properties, Inc. * Huffman, Tx:

Many families who are looking to relocate wish to do so before school starts in the Fall. Not knowing how the lease market works; they frequently wait until July if they are wanting to move over summer or December if they are wanting to move after Christmas and during the Holiday break. Every year; about the middle of July and the end of December, we begin getting frantic phone calls from people who want or need to move and ... there's nothing available. By the time they eliminate the properties that are overpriced, trashed, in the wrong area or just won't work for their family they find they are left with one or two that look promising. They call immediately but the home is gone. Chewing on their kitchen counter in sheer frustration they cannot understand how a home that just popped up on HAR 5 minutes ago is already leased.

The answer is ..... waiting lists. Yup. Most Realtors have 'em. So when a prime property comes available the Realtor - quick like a rabbit - emails the information to the clients on their lists and the property is gone in hours. Did you know that there are hundreds; yes, hundreds - of Realtors in the Huffman, Crosby and Atascocita areas that also show properties in Cleveland, Dayton, Splendora, Porter and New Caney? That's your competition.

Here is what you need to do:

Find a Realtor you trust and get on their client mailing list. Preferably me. Tell them absolutely everything you need, want, don't want, etc. This helps them narrow down the search. Exactly what you want may not be available. They will get as close as they can and leave the elimination process up to you. Compromise is sometimes necessary. I strongly recommend a full time working agent. That's where you'll get the best service. Your part-time 2nd cousins aunt twice removed Realtor from Texarkana may not really be on top of the market. Use a local Realtor; one that knows about not only the advantages but the pitfalls in the area of your choice.

Timing is everything. Most leases require the tenant give a 30 day notice when they plan to move. Many leases allow the property to be shown during the last 30 days of the lease. Many (but not all) Owners will allow you to execute the lease and hold the house with one month's deposit; paying the first month's rent just prior to move in. If you wait until the house is vacated; you are probably going to be too late. Plan to move when school is out ... not when it is ready to start.

About now tenants that are moving when school is out are beginning to give 30 days notice ... and those properties are coming on the market NOW so .. NOW is when you need to start looking and get that property secured with a deposit if you want to move over the summer or over the Holidays.

Know your market. For example; if you are looking in the Humble/Kingwood/Atascocita area you probably know that there are different schools in that area. If it makes a difference to you; make sure your Realtor knows not only which schools but which neighborhoods you do ... or don't ... want. If you are looking in the Crosby area and Newport will work for you then there is generally a fair amount of inventory. However; if you want Crosby and do NOT want to be in Newport .. then pickin's are slim. If you want Huffman or Splendora you will find availability very, very limited so you need to be ready. I always have at least 5 potential clients for EVERY available lease property in Huffman last Fall. Multiply that by the number of other Realtors with the same problem and you can see that the early bird absolutely gets the only worm in Huffman.

Be honest with your Realtor. It is perfectly understandable that you might not want to discuss with a total stranger that you have had job history, credit, rental or other problems - but it is an absolute necessity. It is amazing to most Realtors that we can tell our clients that job history, rental history and credit will be checked and still the client will not tell us that there is going to be a problem. Folks; there IS going to be a problem as all of those things WILL generally be checked. Some Owners are more lenient than others. If you have problems; tell your Realtor so they can weed out the properties that there is no way under the sun you are going to be approved to lease.

Be ready. You know about how much you can spend each month for your payment. You will need cash on hand for the first month's rent and an equal amount deposit in most cases. If you have a pet or pets; be sure to let your Realtor know. There is a separate agreement that must be signed in addition to the lease and most Owners require a pet deposit for each animal. It varies with the Owner. Some Seller's require money orders and some won't take money orders - they want bank checks. Your Agent will tell you what you need. Generally you will also need to pay for the credit and background check. Different Owners and agencies vary but average is between $25 and $40. Don't try to bargain pay-outs on the deposits. If you don't have the money ready and available the Owner will generally assume you cannot afford the house and you most probably will be turned down.

Understand the process. It is not uncommon to have a client show up with cash and want to lease a house right that second. It doesn't work that way. There are exceptions; but in most cases; you must fill out a lease application form. Not only must you fill out this form but every individual in the household who is 18 or older must fill out a separate application. This includes your spouse, the 18 year old senior in high school and your 90 year old mother. Remember; the Realtor's don't require this - the Owner does. These applications must be returned to the Realtor. Some Owner's have the Realtor run the credit, employment and prior rental history. Some Owner's prefer to do that themselves. Nothing moves forward until that is done. Assuming the information meets with the Owner's approval; a lease is then executed (with pet agreement forms if appropriate) and the executed lease is forwarded to the Owner. When the Owner has executed and returned the lease the Realtor will collect your deposit amounts and first month's rent check ... and give you the keys. This process can take 24 hours or 24 days; depending on the Owner.

Allow time - not only is time involved in processing the lease; but, particularly in cases where a tenant is just moving out there may need to be clean-up and/or repairs. This can be time consuming; especially if the Owner is out of area. Just because you need to move in 3 days does not mean the Owner is able or willing to have all the carpets cleaned and the house repainted (for example) in that period of time. Desperation generally doesn't work well with Owners. Your crisis is not perceived by them as being their crisis. No matter how good your Realtor is; they cannot force the Owner to move faster or comply with your wishes. Plan well.

To cut the process short; if you know you are going to move contact your Realtor and ask them to send you the lease application form (you can make copies and complete one for each person 18 or older) and the pet contract form (if needed). The property address on the forms can be filled in when the home is found. In the interim; fill out all the information (do not date it) and return it to your Realtor along with any information you need to supply regarding credit, etc. They can review the applications, ask questions and possibly head off any potential problems. When the property is found the Realtor can fill out the property address, date the forms, collect the fee for checking your history and have it all sent to the listing agent or the Owner in very short order. This puts you ahead of the pack.

U Call - We Haul- U All - If your Realtor contacts you with an excellent property do NOT hesitate. Don't wait until Thursday. Go as quickly as you possibly can. Remember; all of those hundreds of other Realtors are doing the exact same thing your Realtor is doing - contacting those clients who are ready, willing and able to jump on that opportunity NOW. Every other client who is looking for a lease may be calling some Realtor about that property right now so; if it's a good one, ya snooze and ya surely will lose.

If the Realtor you are working with is doing their job; stay with that Realtor. Applications, credit reports, rental and job history verifications are not transferable between agencies. Every time you change you must start all over.

Do you have questions? I'll be happy to try to answer them. Want an application sent to you so you can speed up the process? I'll be happy to send it. Want on a mailing list so you have first shot at the best properties? Just let me know and I'll be happy to do that as well. You can email me at lynnliststexas@aol.com

Happy Hunting!

Lynn


 


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Disclaimer : The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of the Houston Association of REALTORS®

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