This is my first post on BP! I am very excited to have found this great forum.
We have some single family homes here in Seattle. We just had one house on the market, and thought we had set the rent fair/ a little high, but we ended up getting contacted by 25 parties, we scheduled 10 viewings, and had four applicants, we rented to the first party as they were very qualified. This all occurred in the first 24 hours.
We heard from a professional property manager here in Seattle that he implemented a dynamic rental pricing plan. He lists a house a few days before an open house, amends a "notice of multiple offers" document that is typically used for his clients selling houses, and communicates multiple offers have been received and to submit their best offer for owners review by a specified time.
It strikes us that this is a win-win for owner and applicant. The applicants we are seeing are frustrated, feeling like they have no chance if they're not the first to view the property.
Has anyone implemented this strategy for multiple offers? Does anyone have a "notice of multiple offers" document they can share or know where we might find one? Are there any legal issues/procedures (generally or Washington state specific) to be aware of in soliciting and managing a multiple-offer situation for leases?
Your responses are very appreciated.
Very interesting! I have heard of this happening in Washington D.C.. The incident I heard of was where the tenant themselves offered higher rent if they were taken.
Following here to....Great question @Tim M. We have numerous multifamily properties in Snohomish County and are investigating grabbing some sfh in Seattle.
I have not heard of this before but I can see how it would benefit everyone (except maybe not for the other tenants who bid lower!) I like the sound of that, from the point of view of a landlord. Being relatively new to real estate here in the US, I am finding there are so many dos and don'ts. I am surprised that the property management did that because when it comes to buying a house, I thought that in a situation where there are multiple offers, the real estate agent cannot reveal to the other buyers what each other's offer is. Well, at least I know it is unethical to do so in MD. I suppose the regulations are different when it comes to rentals?
I have never accepted offers on a rental, Here in western OK its easy to get 10+ qualified applicants in a day. May be something we research.. Thanks for the Idea sorry I'm no help..
I've had a few higher offers on our condo rentals in FL, mostly from pet owners who have a pet that is not allowed by the condo association...a bribe, I suppose ;) On one occasion, 2 applicants wanted the condo, the 2nd one offered more money, but I would only consider doing that if both had applied at the same time, as in @Tim M. 's case. The 1st applicant was ahead by several days.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!