PROView - October 2007 - (Page 6) Inc. in Port St. Lucie and Chairman of the Board of the T EN Florida Association R of Residential OR F Property Managers. “Most property owners believe they know the rental value and will tell you what they want to rent it for,” she said. She cautioned that while Realtors® wouldn’t advertise or market a property for sale at the property owner’s inflated value; the same applies to rentals. “Agents who specialize in rentals and property management gather current market statistics and know the value of properties in different areas based on size, amenities and the price per square foot - statistics not readily available through the MLS, “ she added. Professional guidance is especially important considering that rental prices are dropping as the result of a recent surge in investor-purchased properties intended for flipping that are now available for rent. As a Realtor®, you are trained to highlight features likely to gather the attention of a potential buyer. Many selling characteristics may not be as important for a rental unit. “Tenants look for a specific location, the number of bedrooms and of course the price,” says Gerdes. They typically do not care whether the cabinets are oak and granite, or if it has volume ceilings, roman tub, double vanities, a view of the lake or is on a waterfront with a 27-foot dock. While a pool home may rent faster and possibly at a slightly higher price, the owner may not realize any additional income when you consider that pool maintenance most likely will have to be covered as part of the lease. In today’s market many sales agents are tempted to take on property management with little or no experience in that area of real estate. Since most owners are inexperienced in the rental market, there can be some unpleasant surprises for everyone if the leasing process is not performed in a careful and complete manner. Morgan recommends that Realtors® should become familiar with any local ordinances and HOA restrictions that may prohibit a lease or the length for which a property can be leased. “Pinellas County, for example, prohibits rentals for less than 30 days unless property is zoned for transient rentals and the cities of Clearwater and St Pete have separate rental ordinances.” She also pointed out the importance to personally check the rules of an HOA. 6 PINELLAS REALTOR® ORGANIZATION “You cannot rely on an owner saying that a rental poses no problem with the association. It’s your responsibility to verify that no barriers to a lease exist.” Another point Morgan stresses is that of due diligence in verifying whether a property is near foreclosure, a common situation facing many properties these days. “Owners who are facing foreclosure will likely look for any solution that will allow them to keep their properties.” In cases where the property actually goes into foreclosure, you may end up with an unhappy customer and a tenant that could hold you accountable and liable for any financial and non-financial damages they may encounter because they have to find another home. You should be extra vigilant when working with investors owning properties with large mortgage payments that are unlikely to be covered by a rent check. So, should you consider becoming a property manager? Absolutely, said Morgan, but she stressed the importance of making the new business venture a long-term commitment instead of just a quick fix for current sales limitations. “Just make sure to protect yourself by learning all aspects of the rental business.” As always, one should always proceed with caution when acting outside their area of expertise as advised by NAR’s Code of Ethics. Agents should also confirm with their brokers whether or not their companies allow their associates to do residential leasing & property management because of the extensive risks involved and potential impact on E & O insurance premiums. Morgan points out that even those with many years of property management and leasing experience may suffer from liability created from unintended consequences of a lease transaction or of management activities. “My best advice,” she added, “is to be sure you are knowledgeable before you engage in representing owners of rental property. Your best option may be to refer the business to someone more experienced and focus on what you do best.” Interested in becoming a Certified Professional Residential Manager or a Property Manager? Visit www.tpmacademy. com October 2007 http://www.tpmacademy.com
Table of Contents Feed for the Digital Edition of PROView - October 2007 PROView - October 2007 Contents Chairman’s Notes Feature Story ProActive 2007 Annual Membership Meeting and Luncheon Marketplace Analysis Home Sales Report MLS Update MLS Upcoming Events Calendar of Events & Programs PRO Biz Welcome New PRO Members Welcome New PRO Affiliate Member News PROView - October 2007 PROView - October 2007 - PROView - October 2007 (Page Cover1) PROView - October 2007 - PROView - October 2007 (Page Cover2) PROView - October 2007 - Contents (Page 1) PROView - October 2007 - Chairman’s Notes (Page 2) PROView - October 2007 - Chairman’s Notes (Page 3) PROView - October 2007 - Feature Story (Page 4) PROView - October 2007 - Feature Story (Page 5) PROView - October 2007 - Feature Story (Page 6) PROView - October 2007 - Feature Story (Page 7) PROView - October 2007 - ProActive (Page 8) PROView - October 2007 - ProActive (Page 9) PROView - October 2007 - 2007 Annual Membership Meeting and Luncheon (Page 10) PROView - October 2007 - 2007 Annual Membership Meeting and Luncheon (Page 11) PROView - October 2007 - Marketplace Analysis (Page 12) PROView - October 2007 - Home Sales Report (Page 13) PROView - October 2007 - MLS Update (Page 14) PROView - October 2007 - MLS (Page 15) PROView - October 2007 - Upcoming Events (Page 16) PROView - October 2007 - Calendar of Events & Programs (Page 17) PROView - October 2007 - PRO Biz (Page 18) PROView - October 2007 - PRO Biz (Page 19) PROView - October 2007 - PRO Biz (Page 20) PROView - October 2007 - PRO Biz (Page 21) PROView - October 2007 - Welcome New PRO Members (Page 22) PROView - October 2007 - Welcome New PRO Members (Page Cover3) PROView - October 2007 - Welcome New PRO Members (Page Cover4)
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