Today, we’ll be discussing absentee owners in real estate and their importance for real estate agents. An absentee owner is an individual that possesses ownership of a property but does not live in it.
For a real estate agent, it’s crucial to understand the benefits of working with absentee owners. Not only can they provide a valuable source of listings, but they also offer unique challenges and opportunities for agents.
In this blog post, we’ll discuss different ways absentee owners can benefit your real estate business. So get yourself a cup of coffee, and let’s jump right in!
1. Source of Potential Leads
Real estate agents can find new leads by reaching out to absentee owners. Since they may not be present to manage their properties, they may be more willing to sell their properties or seek assistance from an agent. This allows agents to tap into this market and grow their business.
Benefits of Targeting Absentee Owners for Leads
I. Higher probability of selling properties
Targeting absentee owners can increase the probability of selling properties. These property owners may be more motivated to sell their properties due to being out of the area or dealing with other priorities. As a result, real estate agents have a higher chance of closing deals and earning commissions.
II. Opportunity to expand customer base
By targeting absentee owners, real estate agents can expand their customer base. These property owners may not have established relationships with other agents in the area, which creates an opportunity for agents to establish themselves as trusted sources of assistance.
III. Increased likelihood of repeat business
Working with absentee owners can also increase the likelihood of repeat business. If an agent provides quality service and assistance to an absentee owner, they may continue to use their services for future real estate needs.
2. Property Management Opportunities
Absentee owners may require property management services to assist with the day-to-day management of their properties. This can include collecting rent, maintaining the property, and handling tenant issues.
Since absentee owners are not present to manage their properties, they often rely on property management services to ensure their investments are adequately taken care of.
How Can Property Management Help Real Estate Agents
Managing the properties of absentee owners can be very beneficial for agents. Some of these benefits are:
I. Opportunity to generate recurring revenue
Offering property management services can allow real estate agents to generate recurring revenue. Since property management services often involve ongoing tasks such as rent collection and property maintenance, agents can earn a steady income from these services.
II. Ability to provide value to absentee owners
Real estate agents can provide value to absentee owners by offering property management services. These property owners may not have the time or resources to manage their properties from a distance, leading to added stress and complications. Agents can alleviate this burden by offering property management services and valuable assistance.
III. Potential for referrals and word-of-mouth marketing
Providing high-quality property management services can also lead to referrals and positive word-of-mouth marketing. If an absentee owner is satisfied with the services provided by an agent, they may recommend them to others or provide positive reviews and testimonials.
3. Investment Opportunities
Owners not living in their properties may be more inclined to sell them for various reasons, such as changes in personal circumstances, wanting to convert assets to cash, or challenges in managing the property from a distance. This allows real estate agents to identify and purchase properties from absentee owners.
Benefits of Purchasing Properties from Absentee Owners
I. Potential for profit
Purchasing properties from absentee owners can allow real estate agents to make a profit. Absentee owners may be motivated to sell quickly, leading to a lower purchase price and higher potential profit margins for agents.
II. Opportunity to fix and flip the property
Buying properties from absentee owners also presents an opportunity for real estate agents to fix and flip the property. With the owner absent, there may be neglected maintenance and repairs that can be addressed to increase the property’s value.
III. Possibility of long-term rental income
Real estate agents can also purchase properties from absentee owners as an investment for long-term rental income. These properties may already have tenants in place, which can provide a reliable source of rental income.
4. Tenant Sourcing
Absentee owners may have difficulty finding and handling tenants for their rental properties. As a result, real estate agents can offer tenant-sourcing services to absentee property owners.
What are these Tenant-Sourcing services?
Tenant sourcing services refers to finding and screening potential tenants for rental properties owned by absentee owners. These services may include:
- Advertising vacant properties: Real estate agents can use online and offline marketing channels to promote rental properties and attract potential tenants.
- Tenant screening: Real estate agents can develop a thorough screening process to identify reliable and responsible tenants. This may include conducting background checks, verifying employment and income, and checking references.
- Lease negotiation: Real estate agents can negotiate lease terms and conditions with tenants on behalf of absentee owners.
- Rent collection: Real estate agents can handle rent collection and processing on behalf of absentee owners, making sure that rental income is received on time.
- Property maintenance: Real estate agents can coordinate and oversee property maintenance and repairs to ensure that rental properties are well-maintained and that tenants are satisfied with their living conditions.
Note: Many of these services also come under Property Management’s umbrella.
How to Look for Absentee Owners
So now you know absentee owners can help your real estate business, you may be wondering how to find one. Finding absentee owners can be done using a variety of methods. Here are some tips for finding absentee owners in or outside your locality:
Check Public Records
Public records, such as property tax records, can help you identify absentee owners. Look for properties that are owned by individuals or entities that are located outside of the local area.
Use Online Tools
Many online tools can help you find absentee owners, such as real estate websites, social media platforms, and public record databases. Some popular tools include Zillow, Realtor.com, and PropertyShark.
Hire a skip tracer
A skip tracer is a professional investigator specializing in finding people who have moved or changed their contact information. They can be hired to locate absentee owners who may be difficult to find using other methods.
Use Direct Mail Marketing
Direct mail marketing can effectively reach absentee owners and generate new leads. Consider sending targeted mailers to properties you believe are owned by absentee owners, offering your real estate services and highlighting the benefits of working with a local agent.
Network with local service providers
Local service providers, such as property management companies and real estate attorneys, may have access to information about absentee owners in your area. Consider networking with these professionals to expand your network and access new leads.
Last modified: May 1, 2023
