"Offers for rent" system

10 Replies

Hello BP. Does anyone have any practice with or insight on using an "offer for rent" system? I'm not sure how fair housing applies, but I'm curious about using this strategy to maximize the rent amouny by allowing prospective tenants to submit offers of rent for a property. I ask this question as I am unable to find the "search" bar for the forums on the BP mobile app -_- Thanks!

i don't see how fair housing applies to this at all. Of course you still have to follow fair housiing laws. I just don't see how this practice in of itself would be against fair housing. 

The sheer inconvenience/discomfort this puts the prospective renter pool in would be enough in my book not to try it. Remember, your typical renter doesn't think like you and I... that's why most of them are renting rather than buying... they want simplicity and lack of responsibility. I bet you anything you scare off 50% of renters who would otherwise consider the place, and you're wasting a lot of time entertaining those who think they can get a deal. 

On further thought you could back into a similar setup by pricing it a tad high but indicating you're willing to talk about the price for the "right fit" (don't get specific) or if it doesn't rent quickly. 

@David Smit thanks David for the insight. I was thinking it would be a bit more brain effort on the prospective tenant's side. I like the "backing" into the setup. That seems more organic in the application/negotiation process. Thanks again.

@John T. I don't think I like this idea either, but I have never tried it so my opinion doesn't count for much. 

Someone who's opinion I think does count is a guy that goes by Mr Landlord. He suggests when you first list - do not put a price. Ask applicants what they are willing to pay. That gives him an idea what the  marketplace will give and then he uses that information in future ads. 

Remember people who look at your unit have probably looked at  many others. they have a pretty good idea how yours compares. If the  market is tight, they are going to offer a price that is competitive.

Ha, maybe the auction idea is a good one after all.

Originally posted by @Ned Carey :

@John T. I don't think I like this idea either, but I have never tried it so my opinion doesn't count for much. 

Someone who's opinion I think does count is a guy that goes by Mr Landlord. He suggests when you first list - do not put a price. Ask applicants what they are willing to pay. That gives him an idea what the  marketplace will give and then he uses that information in future ads. 

Remember people who look at your unit have probably looked at  many others. they have a pretty good idea how yours compares. If the  market is tight, they are going to offer a price that is competitive.

Ha, maybe the auction idea is a good one after all.

Ned you live and work in a very heavy renter dominated area..  how about this   you put the rental up on a unit that should rent for about 1200  at say  100.00 a month or best offer...  with the hopes that it gets a huge amount of traffic.. and I guess you could have a non published reserve like auction houses do..  But me thinks the renter mentality would find this challenging to even comprehend in many rental dominated markets.. but in high end markets Like NYC or SF or LA or WA DC  were rents are say 3k and above maybe this works..  

@Jay Hinrichs I am just passing along what Mr Landlord said. It sounds really cool when he says it but I don't think it is really practical. The exception might be, like you say, a high demand area with high rents. 

Of course a premium location like that is likely to be listed to get highest exposure. It is really no different than an agent asking for "highest and best" offers. That is nothing new.

It seems to me accepting bids for a rental would only benefit the landlord in a very competetive rental market with low supply/high demand where you might find high quality renters willing to oubid each other just to get into a place.  Even then, what if the winning bidder didn't pass your screening critera?  Do you put it back on the market and solicit bids again?  Otherwise, I am not sure what it would achieve. If you want to at get market rate rents then why not just list it slightly above market and see what happens?  

Even though I am a landlord I am also a renter (by choice - I would rather own what I can rent out), so if I saw an ad that like that I probably would not even bother with it unless I had few other options for places to live in.  For me as a potential renter it sounds like a pain in the arse.