Have you found our company due to recent News Stories about Rental Bidding Wars? Channel 3 Channel 15
Welcome- we are happy you are here!
Depending on which news story you watched…you know that our little family-run real estate brokerage in beautiful Gilbert, AZ has recently been utilizing a new rental placement strategy that is commonplace in other states nationwide: asking renters for “highest and best”. Yes, that is right. The current rental market is nuts. People who would much rather buy are having no choice but to rent due to the supply of homes to purchase being so low. This concept adds an entirely new potential tenant category to renter competition pools and yes, it is a competition. The best candidate on paper gets to have their credit checked, their references called and their income verified in order to see if they are someone that we would recommend to our clients as the next tenant in their investment property. That is how it works. Along with that, our team provides pricing recommendations, service options, maintenance advice, repair coordination, referrals to vetted vendors, document prep, financial tracking, and more to our clients (the homeowners).
If you are an investment real estate owner that is in need of professional full-time full-service residential property management services, we would love the chance to talk to you about what makes our team the right fit for the job.
Why did the News Get Involved
Google “Rental Bidding wars” and you will quickly see this is not a new concept and this strategy is being used across the nation. If your property manager does not have a pulse on innovative ways to not just survive but to THRIVE in this market, call us and let’s chat.
Is there more to the Story with Natasha Smith?
While we like to think that “all press is good press”…no company wants to be made out to be the bad guys in a compelling personal interest story involving a widow losing the home that she raised her kids in because her landlord is taking advantage of this market and selling. (he came to her with tears in his eyes which she couldn’t blame him for) We are not the originators of the “highest and best” concept, and we are not “turning things into a bidding war” THIS is what you call “CLICKBAIT” and our media LOVES it.
In this particular circumstance, we had a very qualified applicant offer to pay more per month to stand out among other very qualified applicants. Our fiduciary responsibility means we owe the owners of the home our loyal duty so if we can get them a tenant that is top-notch AND that is paying more each month after we have all survived the last 16 months of COVID-19, that is a WIN all around. So we reached out to all potential applicants as a way to be transparent and fair to everyone. Most property managers would likely just let everyone know that they weren’t selected and that’s that. We wanted to be sure everyone had the same option to “stand out”, so we offered the more than 20 applicants on this one house a few ways to make their applications stand out…ways that we can LEGALLY and ETHICALLY make decisions on. (sorry don’t bother submitting letters, far too often they are filled to the brim with fair housing violation info and we don’t even read them) We do not send out a request for best and highest with every single rental that we list- only the ones where someone in the tenant pool has opened it. Maybe others do, but 410 doesn’t…at least not as of the writing of this post in June 2021.
As for Ms. Natasha Smith- Jessie Geroux had a 45 minute Facetime conversation with her the day that the Facebook post went up. I needed to have a face and voice to the conversation since everything had been so intense online. In this conversation Ms. Smith disclosed that the 4:10 Real Estate property that she had just been turned down for was not the first company to ask her for her highest and best. She had already met with another potential landlord for a rental that was $1900 and before lease signing, he told her he had to raise the rent to $2200 and she walked away “on principle.” She then found the 410 house, fell in love, (even took photos of herself at the house because she “knew it was the one”) At the end of the day, she was not the most qualified of applicants from the pool and we selected someone else. She, in her grief, went to Facebook and it blew up. Ms. Smith did express that she never intended for our office to “get slammed” the way we did, and Jessie asked her point-blank “help me correct that online then please”. At that moment- a voice off-camera piped up saying “it doesn’t benefit her to do so”, and the voice then identified herself as a fellow real estate agent. We do not know if the agent from the Channel 15 story is the same woman (I was so thrown off by another person being a part of the call and piping up out of nowhere that I didn’t catch the name) – but it could be. Our call was then disconnected at that point. The next thing we know, local news stations are asking for interviews. This one with Kim Powell at Channel 3- did a better job of telling facts, they spelled Geroux wrong and did make it sound like we “started” the concept of rental bidding wars but overall it was a decent story. Channel 15, well, watch and form your own opinions.
So, bidding wars on rental properties in Arizona? That’s 2021 for you. Follow us on Facebook here to keep up to date on our work for investment property owners in Arizona. Does YOUR property manager have a plan for how to manage your portfolio when the COVID19 eviction moratorium is lifted? We have been working on ours since last fall. We will blog about that next week.
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