We often hear about targeting for sale by owners, but what about landlords who are trying to rent out properties without an agent? Today, I’m going to show you the step-by-step process of connecting with Zillow landlords and converting them into potential future listings.
Start with a Zillow Search
Begin by going to Zillow and entering your desired location in the search bar. Filter the results by clicking on “For Rent.” To find motivated landlords, go to the last page and explore the oldest listings first. These landlords are often feeling the financial pressure as their next mortgage payment looms, making them open to working with a Realtor. Next, look for listings labeled “By Owner.”
Initiate Contact
Click on the “Ask a Question” button and send a personalized message. I like to use an old Dianna Kokoszka script, but feel free to put your personal spin on it!
Here’s a script that maintains urgency and give a personal touch:
Hi Lynn! This is Lindsey from Compass. I came across your Zillow rental listing and wanted to see how things are going with showings.
Most of the time landlords will put a sign in their yard, put the property on Zillow, and then they pray a tenant will find it! But the reality is, most tenants who are looking at this price point will want a Realtor who is going to find all the properties that fit their needs, and then show them all of those properties. I also worry that you’re missing out on the exposure you need with being in MLS!
In addition, some potential tenants might try to take advantage of Zillow landlords because they assume that landlords won’t thoroughly check their employment, criminal history, or previous rental history.
Here’s the deal I’d like to offer you: I typically charge one month’s rent to rent out a property. However, if I can’t secure a tenant for your property within three weeks, I’m more than happy to completely waive my fee.
If that’s something you’re interested in as well, I’d love to chat and explore how I can help! If not, no worries!
Stress the Benefits
In your conversation, highlight the value you can provide. Explain that many tenants in this price range prefer working with an agent who can help them navigate the rental process efficiently. Also, stress the importance that you will work hard to get them quality tenants.
Highlight the fear
Emphasize the potential concerns by pointing out that some tenants may try to take advantage of Zillow landlords who might not check their applicants. Stress the significance of having their property listed in the MLS.
Create an irresistible offer
Explain that you’re ready to waive your fee if you cannot secure a tenant within 3 weeks if they agree to list the property at the price you suggest. When you discuss this on the phone, make it clear that the fee waiver is contingent on agreeing on a price, which you usually calculate as $150 below the market rent. If they opt for a higher price, your fee will remain one month’s rent.
For instance, let’s say you have a $2,500 rental listing. In the conversation, you can say,
“I’m willing to waive my fee if I cannot secure a tenant for you in 3 weeks, but we would need to list it at a price that we both agree on. I’m willing to take this on for $2,350. However, if we decide to try your higher price at $2,500, I can still list the property for you; I just won’t be able to waive my fee after 3 weeks if I don’t secure a tenant.”
Always ensure that the language you use regarding “waiving your fee” or offering to waive your services complies with your broker’s rules and local regulations.
Potential for Double-Ending Deals
Many of these listings only need a small tweak in price and professional photos. In certain states, you can represent both the tenant and landlord in a double-ended deal.
Turning Rentals into Listings
I have found that approximately 40% of these landlords decide to make the transition from landlords to sellers within a year. Additionally, some of them might actively seek additional investment properties.
After you’ve successfully rented out a property, set up three calendar reminders to check in with the landlord every three months. Make yourself the go-to choice when they’re ready to sell by maintaining consistent and valuable communication.
By targeting Zillow landlords with a personalized approach, you can tap into a niche market with enormous potential. These motivated property owners can not only become your rental clients but also future listings!
