We handle many rentals in a year and have grown to understand that the market goes in waves and given the right price, every good apartment will find a tenant. It is just a question of timing and pricing.
Recently, rentals have been very slow. It could be the season or it could be the uncertainty in the economy and the war. An owner gave us an apartment to rent, but also gave it to another agent. A price was established and we knew the owner wanted a specific amount, but if we found a good tenant, especially one who was interested in taking the unit for a long time, would lower the price. We were never aware of the lowest point the owner would accept. Another agent, instead of quoting the price the owner wanted to receive, sent out an advertisement with the lowest price the agent thought the owner would accept. If he found someone he believed the owner would take it. He wasn’t interested in getting the best price for the owner, he wanted to get the commission before anyone else got it.
We were working with a family and after a few visits, decided to take the apartment. It was our place to negotiate the best price for the owner and the tenant. As we started the negotiations, the tenant showed us an advertisement of the exact same apartment from a different agent, but at a substantially lower price. Was it the same apartment? Yes, it was and the owner, a very honorable person agreed to set the rental price at the lower price, thus saving the tenant thousands of Shekels.
We learn from this a number of things.
- Try to stick with a single reliable agent.
- If you are using different agents, be consistent in pricing.
- When an apartment sits empty it is money lost as you are paying for Vaad Bayit and Arnona. Be reasonable in offers.
- It is better to have what you believe to be a solid tenant at a lower price than a questionable tenant at a higher price.
