We’re all looking for options to get new business. Especially when it comes to creative strategies that few other agents are using (that cost little to no money).
So when I heard about this, I had to bring it to the group. You’ve probably heard of “For Sale By Owner” (FSBO) – we even covered it in last week’s article – but have you ever considered marketing to “For Rent By Owner” (FRBO) properties?
Inside a FRBO’s Head
There are a lot of people throughout the country who own and rent one or maybe 2 homes but aren’t looking to build an empire of rental properties. I also know from personal experience that if you only own 1 rental property, every time you need to find a new tenant, the thought goes through the back of your mind – “is this worth the hassle?”
My family moved to a new area when I was going into high school, and were able to keep my childhood home and rent it out. While they haven’t sold it yet, I can tell you first-hand that it’s a serious consideration each time they have to find a new tenant.
That presents a serious opportunity for you as a real estate agent to implement a creative strategy to target those homeowners, that few other agents are using.
Where to Find FRBO Leads
It might take a little time, but building a contact list of people renting their homes is virtually free and there are dozens of places you can look. For example – look for ‘for rent by owner’ homes on:
- Rent.com, FRBO.com
- Facebook Groups
- Local Newspaper
Once you’ve found your list of FRBOs, it’s time to figure out the best strategy for approaching them. Luckily, this is very similar to our strategy for marketing to FSBOs… with a twist.
First, identify the pain points FRBOs experience:
- Renting a home yourself is a lot of work.
- Many homeowners live out of town, and have to pay a property management company plus all the home maintenance – it all adds up. Sometimes the extra income may just not be worth it.
- Any time a renter moves out, they have to set the right rental price and find/choose someone who they hope will be a good renter.
- Each time they rent their home, they worry about potential problem renters – not paying rent, trashing their home, or someday having to deal with an eviction.
Once you’ve identified those pain points, it’s time to add value and become a trusted resource.
Show them that you’re willing to help them, without pushing them to use your services or even being ready to sell the home. We’ve even included some ideas below for building valuable resources to start opening conversations and attracting FRBO customers. Think of a report to offer that speaks to some of the pain points that FRBOs have. (Our Service For Life! Marketing system provides free reports you can use in your business, but you can also put together a free report on your own that serves the same purpose. See our ideas below.)
- 6 Steps to Avoiding the Dreaded “Bad Tenant”
- When is it better to Sell than Rent?
- Choosing the Best Property Management Company
- 10 Questions When Deciding to Sell or Rent
Remember, put yourself in the FRBO client’s shoes. What info do they need to know? What expert advice can you give them? Offer that to them, be consistent, and be helpful without being pushy. Make sure to add these clients to your monthly newsletter list, and even think about setting up a separate mail/email list that automatically sends helpful info focused on FRBO topics to these leads.
Have you ever worked with FRBO leads or clients? We’d love to hear your thoughts and tips- just comment below.