Follow Up to Last Weeks Rant

   I wanted to make another point about about the possible damages that Owners can cause Agencies by renting with multiple agents, including themselves...
   I recently rented a property for the Holiday week of 12/26 - 1/02.  I sent out the lease to the tenant and obtained information to secure the deposit.  When I sent the lease to the owner for signature, it was rejected.  They called me saying that they had just secured a rental from another source for that same period.
   I had to call my renter, an attorney in Montreal, and let him know.  Needless to say, he is not happy.  Fortunately for me, I was able to give him two good alternatives and had not run his credit card for the deposit.  He has declined my alternatives, but at least I was able to give the option.
   In the mean time, he is uttering phrases such as "this is a disgrace and a shot in the arm to consumer confidence."  Although he may be going a bit far, because I was able to offer him a comparable property, people really do feel that way.  Now my name is mud to this customer, not the owner.  The owner could care less, they have their rental and life goes on.  For me, this customer is going to tell 10 people not to work with LSRE, and they're going to tell 10 people and so on.  I may be exaggerating a bit, but you get the idea.
   I can remember a time when I had a number of properties in my inventory, and I didn't have to call anyone to check it's availability before I booked it.  I just rented, and rented, and rented some more.  There were three major agencies in town that handled the bulk of the vacation rentals.  Owners had not yet muddied the waters by trying to handle their own rentals from "East Jabip".  It was as close to utopia as one could get in the Vacation Rental business.  But those days are history.  And that's Okay.  I am capable of rolling with change, and am usually open to it;  but I'm now a little concerned for the health of the industry.  There is so much inventory out there that it is getting confusing for customers.  Not to mention that as the pie gets cut smaller and smaller, the individual gross gets smaller and smaller.  If the numbers don't add up, people won't buy.  I don't wonder if that isn't a small element of our current slow down in sales.  So, not only is it hard to get money from lending institutions, but now an agent can't safely say that a property can earn an estimated  X per year.  A word to the wise, your property has to be special.  A real stand out in this market in order to make good money.
   Another issue that shakes consumer confidence is to look on a "By Owner" website during their search and see a property for one rate.  Then search an agencies website only to see that same property at a higher rate.  I think you can draw your own conclusion as to what they do and where they'll rent it.  A situation that's even worse is when they book that property with us and then find that same property listed by the owner for less on their own site or a By Owner site.  I have thought  about this situation and the general conclusion is that I list for the same price, or I don't list it.  Some other rental agents in the area feel the same way.  It is very discouraging to then go to that site and see that it is true.  We are being undercut by our own clients.  Interesting. 
   I believe that we, as professional rental agents, have to show our worth to owners and the value of having an agency handle their rentals for them.  I think we have thrown our hands up, to a degree, and have said "it is what it is".  Well, that doesn't work for me anymore.  Some things have to change.

Until next time ~ John L.S.