Winston Salem | This Document Is Boring, But It Will Save You THOUSANDS when buying or Selling Real Estate

 

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Winston Salem | Financial Benefits of Being Pet Friendly

This information is courtesy of PetScreening.com.      Please keep in mind that while this article references Apartments and/or multi-family properties, it also applies to single family homes which we manage.   

There are many benefits to multifamily communities being pet-friendly, including happier residents, an improved reputation and more homes available for pets that don’t have one. But the residual effects don’t stop there.

Another major benefit is that it widens the pool of prospective residents. According to Apartments.com, more than 70% of renters own a pet, yet many of them indicated that pet-friendly housing is hard to come by.

In addition to attracting new residents, apartment operators will often experience an increase in renewal rates by becoming pet-friendly. While pet owners tend to stay in an apartment home for an average of 46 months, non-pet owners stay an average of just 18 months, according to the Foundation for Interdisciplinary Research and Education Promoting Animal Welfare. This places an average value of $63,572 on a pet-owning resident, compared to a value of $24,875 on a non-pet owner.

Less vacancy, plus increased renewal rates, equals powerful financial benefits for owners and operators.

Consider that a pet-prohibited portfolio of 1,000 apartment homes will have approximately $588,000 in additional turnaround costs and suffer a massive $10.7 million hit to its overall value. By allowing pets to reside in their communities, operators attract and retain residents, which in turn creates new revenue streams.

One way to earn additional revenue from pets could be to have a dog walking service or pet spa that pet-owning residents can use. Another way is by simply charging a small, monthly ‘pet rent’ fee based upon the pet’s track record on top of the traditional rent.

If operators sensibly relax breed and weight restrictions - and they have a way to thoroughly screen pets and pet owners before they move into their communities - they can offer a spectrum of monthly fees and pet rent. They could generate more revenue by charging fees that are not one-size-fits-all but, rather, tailored to the underlying risk presented by the individual pet and pet owner. For instance, a more rambunctious pet could have higher fees associated with it than a calmer, more tranquil pet. A puppy clearly presents more risk than a mature dog (who is potty trained), which could reasonably justify a little extra pet rent for the puppy risk until it’s more mature. Think of it as using a sliding scale to assess the appropriate fees for each pet individually, rather than across the board for all pets.

And while you certainly hope that pet owners behave well, there are fees that may be generated by way of a pet owner's missteps. A 2020 pet policies and amenities survey conducted by PetScreening in conjunction with J Turner Research found that 71% of residents, pet owners or not, support property managers charging more fees for irresponsible pet ownership.  

The fee-inducing offenses could include things such as repeatedly allowing dogs to roam off-leash, not picking up pet waste and allowing dogs to engage in excessive barking.

By completely banning pets from communities, owners are not only excluding themselves from a large subset of potential residents, but they’re also limiting their sources of revenue. Making properties pet-friendly will not only broaden the field of prospective residents interested in living in a community, but it will also provide additional financial benefits for the owner, adding to the bottom line.

I am offering a Buyer Rebate!! Is it Legal?

 

Yes, it is true.  I am now offering a buyer rebate.  In this market,  we Realtors need to be true Brokers. By that I mean, it is our job to help 'broker' the deal.   If this mean helping out buyers ( which will ultimately help sellers)!   The article below discusses the legal aspects of this offer.   Yes, it is legal.

However, in addition to the rules below, there are also a couple other requirements.   You know by now, sellers are not required to offer buyers any compensation.   As you read below, rebates must be paid our of commissions, so this offer is dependent on the overall compensation.     Also, based on this new rule regarding compensation, it is not possible to dis close an amount.    However, this will be honored and negotiated.  

As always,  contact me regarding you real estate needs with zero obligation!

May I offer to rebate part of my commission to a buyer?

QUESTION: I am thinking about offering a rebate of a portion of my commission to buyers who work with me. Is that okay and if so, may I advertise the offer?

ANSWER: The answer to both your questions is yes, provided you do it properly.

First of all, although the license law generally prohibits a broker from sharing his or her commission with an unlicensed person, he or she can share commissions with a party  to the transaction. Any such arrangement should be put in writing, and if the buyer is getting a loan, any such payment must be disclosed to the buyer’s lender prior to closing and must be reflected on the HUD-1 settlement statement (see Real Estate Commission’s Broker-in-Charge Guide, Chapter 5).

Regarding advertising, Standard of Practice 12-3 of the REALTOR Code of Ethics confirms that advertising a commission rebate to buyers is not unethical, subject to the  following proviso:

…However, REALTORS® must exercise care and candor in any such advertising or other public or private representations so that any party interested in receiving or  otherwise benefiting from the REALTOR®’s offer will have clear, thorough, advance understanding of all the terms and conditions of the offer.

Thus, for example, any advertising should make it clear that the rebate is subject to lender approval. Also, although it may seem obvious, it should be clear that the rebate will be made from commissions actually received.

If you haven’t already, you should discuss this idea with your broker-in-charge. Your firm may have a policy on the offering of rebates or other inducements, and your BIC is  responsible for the proper conduct of advertising by or in the name of the firm. Remember that you must disclose the name of your firm in any advertisement of real estate  services or listed property in any medium (see Standard of Practice 12-5 of the Code of Ethics).

Release Date: 09/02/2014

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