Guide on FRBO Prospecting:

What is the purpose?

The purpose of this guide is to help users create a strategic approach to help them prospect For-Rent-by-Owner (FRBO) or owner-sourced listings on Rental Beast.

This guide aims to empower users with the information required to approach FRBO owners and win the listing.

However, if users do not win the listing, a secondary goal is to strategically begin building a relationship with the owner and pursue alternative solutions.

Why is this important?

Many property owners are stuck in the stone age and rent their property the old fashion way… meaning (maybe) some pictures, absolutely no virtual tour, a disjointed lead screening process, and most likely paper rental applications. This presents a great opportunity for you!

Finding property owners who need help marketing their property and pitching how you can help, is an incredible way to earn their business. Based on what we hear from real estate professionals, once you help a property owner rent one property, you will usually become their professional of choice… which means all future listings are yours!

So, what types of property owners should you go after, how do you communicate with them, and how can you win their business? We answer all of that below!

Step 1: Find listings to target and create prospecting lists

Steps to search, save, and set an alert to monitor the FRBO market:

Click on the “Search” tab.
Click the “Clear Criteria” button to reset search filters.
Type in your desired cities, neighborhoods, and zip codes.
You must select/click them as they auto-populate in the drop box.
Click on the “Advanced Search” icon to the right of the search button.
At the bottom left of the page, under “Listing Criteria,” click the drop-down “More Filters.”
Locate the “Owner Pays Fee” option and select the desired settings. Please note, this setting isn’t available in some markets.
Locate the “Ownership Type” option and select “Private Owner.”
Click “Search” at the top of the page.
After your results have been displayed, click on the disc icon.
You will be prompted to type a shortcut name into the box that appears.
Click the “+NewSearch” button to save your search.
Your search name will now appear on the screen, click the bell icon.
Click “Ok” to confirm your alert.
Click on the “Clients” tab.
Click on “Landlord Clients List.”
Click on “+ New Client” and add your information.
After the “Success” popup generates, click on the “Alerts” tab.
Under the “My Alerts” section, locate your alert and click “Clients.” Use your information as the “client,” select the desired email frequency, and click “submit.”
Please note, you will receive an email from Rental Beast informing you that you’ve been enrolled in market alerts. In the email, click on “Accept Email Alerts of Current Rental Listings.”

Best practices for creating FRBO prospecting lists:

How should I decide on my location settings: We recommend going broad with your input to ensure you see as many properties as possible. It is easier to review properties and decide you aren’t interested rather than miss potential opportunities.

Should I use price filters: Our experts do not recommend using price filters. This is because it allows you to get a broader market report.

Do I only select “owner pays fee” when adjusting the commission setting? It depends on how you want to approach this. We recommend applying the “owner pays fee” if you only want to see properties where the owner is offering a commission. However, depending on your comfort level in approaching FRBO conversations, you might consider using less restrictive filtering. This allows you to approach the topic with the owner on the phone. Our experts tend to recommend looking at the commission as an indicator instead of using it to limit search results. If your goal is to create the most expansive prospecting list, you will want to use fewer filters.

Please note, this feature is not available in all markets.
Why should I set an alert for myself? This lets you get updated as properties come to the market that meet your search requirements. You can quickly review added properties and approach them without monitoring market changes.

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Property owners and listings you should target:

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The ideal target is someone who does not market their listings well and/or has an inefficient leasing process. For the most part, this would mean smaller portfolio property owners and/or investors (less than 20 doors) are prime targets. The larger portfolio property owners and/or investors usually have a pretty well-established process for marketing and leasing their properties, so your value pitch to them may not be as enticing.

The following are common indicators that a listing might be a good target:

It has no, few or bad pictures…
It is mispriced…
It has been sitting on the market too long…
Ones that will generate a high number of inbound leads…

Step 2: Cold Calling or Cold Emailing Property Owners:

Goal of the cold call:

Get a listing appointment: The main objective of the cold call is to secure a listing appointment to meet the owner face-to-face. If they push back on this, state they are under no obligation. Your main goal is to review their issues and provide possible solutions to help them.

Do your homework and prepare for the cold call:

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Commission: You can find information on if the owner is willing to pay a commission within the listing. Our experts have found that when an owner indicates they are willing to pay a commission, they are more receptive to either being represented or compensating you when a tenant is brought to them. The easiest way to determine this is by reviewing the listing or using the “owner pay fee” filter.
Pricing: Is the rent price of the property in line with similar listings (higher or lower)? Properties with unrealistic price expectations can help you target properties that might not rent quickly. This can create an opportunity to provide an owner with a current market analysis.
Date available: Paying attention to the date the property is available can help determine the urgency an owner might have.
Days on the market: How long has the property been on the market? What are the average days on the market for similar rental properties?
Incomplete or poor listing: This can range from poor descriptions, lack of photos, or an array of issues that might discourage people from being interested.
Property condition: Has the property owner updated the property recently or is it outdated?
Fees or property restrictions: Are there restrictions or additional fees placed on the current listings? Examples are a home/condo association, shared rental space, or an existing tenant.
Legal requirements: Some locations require property owners to get permits before renting their property. Research and be familiar with the laws, rules, and regulations.
Pro-Tip: Try to shift a cold call to a warm one: An excellent way to help turn a cold call into a warm one is to send a handwritten note. This way, the owner hopefully is familiar with you when you call them. A good note introduces yourself and highlights a few advantages you would bring with representing them.

Keys to a successful cold call:

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Use probing questions to establish pain points: To help you understand the property owner's goals, you can use probing questions to discover their challenges. This allows you to focus on solutions to alleviate their pain and help them rent their property.
Leverage if they’re willing to pay a commission: When an owner is willing to pay a commission, this can make the conversation easier. If they are open to giving a commission to a tenant's agent, they might agree to a split commission for your representation. An extra benefit for the owner relates to “opportunity cost” and their time.
Focus on “Opportunity Costs” with representation: Probing questions about their time can help illustrate the benefit of representation. If they’ve struggled to rent the property or lost a lot of time, highlight how you can alleviate the legwork required to list, market, show the property, and manage the application process. Analogies are powerful when using this approach. Good examples include: Cutting your hair (it could look awful) versus using a licensed hairstylist. Changing your oil (you could ruin your engine) or hiring a mechanic.
Understand that “no” or objections create opportunities: Most people quickly give up when given a “no” or an objection. However, we recommend not immediately giving up and realizing there can be other ways to win their business. Focus on overcoming the objection, however, if you can’t, then pivot to other areas where you might be able to provide value or help them achieve their goals.
Aim to bring value and build the relationship: Use what you find in your homework to help create value pitches on where you can help them. As you ask questions, you can show your market expertise and highlight where you can bring value. If a listing has poor photos, offer to help them with photos. If a listing is overpriced, offer to provide a CMA. If a listing has been on the market for a long time, offer to provide additional exposure via Rental Beast. If a listing is bound to receive tons of activity, offer to help with their screening and application process with Apply Now. The point is to highlight areas of value that can help create urgency and increase the likelihood that they will agree to a listing appointment to discuss these solutions further.

Probing questions to help identify pain points:

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General issues:

What have you experienced to date with attempting to rent your property?
How has “insert specific issue” affected you?
What are the ramifications of not getting your property listed?

Property issues:

Ask about the three biggest deal killers: Pets, parking, and laundry.
Do you have a home or condo association? If so, what are the fees and major restrictions?
How did you get the photos for your listing?
Are you familiar with the local laws/regulations to list the property?
Have you had a lawyer review your lease to protect your property?

Time or Visibility issues:

Is the time spent on showing prospective renters a problem?
Are you getting a lot of “no-shows” for showings?
Do you struggle to coordinate with the current tenant’s schedule and potential tours?
Are you unable to fill their vacancy due to a lack of interested renters?
How have you currently been marketing your listing?

Example Cold-Call:

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Real Estate Professional: “Hi [Property Owner], I see that your property has been on the market for a few weeks which surprises me as it is in a great location! Have you been seeing much interest?”

Property Owner: “Some interest, but not as much as normal. I haven’t taken pictures which seems to be important right now.”

Real Estate Professional: “Got it. Yes, pictures of the apartment are very important. Even better is a video so potential renters get a better feel of the property.”

Property Owner: “I usually don’t have to do that.”

Real Estate Professional: “I understand. If you are interested, I can take the pictures or film the video of the property for potential renters to view. I can then post this listing to the MLS and Rental Beast who then posts it on the Facebook Marketplace and Realtor.com to drive traffic to your listing. You don’t have to worry about screening leads as I will do it for you.”

Property Owner: “I might be interested.”

Real Estate Professional: “Okay! Next step would be for me to come by the property to take photos and the video, or we can schedule a FaceTime call so you can get to know me better.”

Example Cold-Email:

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“Hi [property owner name],

My name is [insert your name] from [insert Brokerage]. I am reaching out about your property at [insert address]. The property seems very desirable but I can’t help but notice you don’t have a virtual tour available. Is this something you are interested in? I have helped other property owners rent their properties utilizing a virtual tour and I would be happy to do the same for you.

If you have an interest I would love to jump on a quick call to discuss this further. Just let me know the time that works best for you.

Thanks,
[insert name]”

Step 3: Preparing for and Conducting Listing Interviews:

Preparing for the listing appointment:

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Bring the evidence: Per the preparation you did (see above), have all the necessary data available and ready to discuss at your appointment with the property owner, including printouts of current and rented properties in-kind to the property in question.
Compile listing documents: Prepare all the necessary rental listing paperwork and fill out as much as possible. If you use electronic documents or e-signatures, save them appropriately, and bring your tablet or laptop.
Create a marketing folder: Prepare a professional folder with your business card and marketing materials.

Talking points during the listing appointment:

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Thank the property owner for taking time out of their schedule to meet with you.
State that you are there to review the issues/concerns you discussed with them on the phone. Your goal is to review possible solutions and provide value to them.
State that you specialize in rental properties. Also, through your affiliation with Rental Beast, you have access to a larger pool of potential renters and a powerful rental marketing program affording them more exposure for their rental listing to potential renters.
You will provide guidance and assistance throughout the entire process, including all the necessary paperwork and the lease.
If it is relevant to their area, you can ask, “Did you obtain your rental permit/license?” or “How was the process to get your rental permit/license?”
Avoid making promises you can not keep.

Obtaining a rental listing:

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Establish next steps: Once the property owner has signed the rental listing paperwork, discuss the next action items you will be undertaking, such as: Measuring, listing pictures, or posting the listing on Rental Beast (and the MLS if you are doing so).
Set appropriate expectations: Let them know that you will regularly call to provide updates. If possible, set a schedule with a specific day and time for update calls.
Reassure your commitment: Let the property owner know you are an advocate for their success.

You didn’t win the listing…Alternative methods to build relationships and bring value:

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Weekly market report: A great way to continue to build the relationship and help the owner is to keep them updated on the rental market. Offer to send them a weekly market report with information about how many properties came on the market, how many properties rented or went off the market, updates to similar listings (price increase, decrease, etc), and other relevant information.
Monthly company report or an “investors” alert: If you have an email list that provides investor market updates or features investment opportunities that match their portfolio goals, offer to include them on one. This allows you to build your credibility with them and stay in contact. While you might not have won their business to represent the initial listing, you could potentially represent them on a future deal.
Offer to provide exposure for their listing: Your MyRental Page is an excellent opportunity to offer owners free exposure for their listings. If they aren’t interested in you listing their property, one goal can be to provide them value by helping them get a tenant. If you want to learn how to utilize your MyRental Page – Click Here!

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Step 4: Additional Considerations to Help Market to Property Owners and Boost Your Pipeline:

A few best practices for maximizing your lead generation efforts for listings and property owners:

Follow-up after you place your client in their unit… You just helped a property owner secure a revenue stream (monthly rent) your value could not be higher!
Build credibility… by publicizing past successes! If you have rented a property before, let them know this! If you have rented a property similar to theirs, even better! Establishing yourself as an expert will help you bring immediate value to the property owner.
Ask if they have additional properties… Even if they don’t have any other current availability, asking this question gives you an idea of when in the future they might. So ensure you set up contact reminders.
Ask what drives their investment… then, find some for-sale listings that fit their investment strategy and send them over. This shows you were listening, you have initiative, and that you care about their business.

Utilize social media to boost awareness:

Creating and maintaining social media pages, such as a Facebook Business page, Instagram page, or LinkedIn profile, can be enormously valuable marketing tools. Ultimately, they allow you to reach a wide audience quickly and without a huge effort.

Use social media and leverage your sphere of influence to notify property owners and investors you can help them rent their property. You want your message to be short, concise, and contain a value proposition.

Here are two example posts:

Facebook post: “Don't have time to screen tenants and show your own listings yourself? I can help! Contact me to learn more about my professional rental services and start enjoying more of your free time. Text me at XXX-XXX-XXXX for a no-obligation consultation.”
LinkedIn post: “It you are a property owner or investor and are tired of spending your precious time screening tenants and showing your property, contact me. I will go over my marketing plan and get your listing rented. Text/call me at XXX-XXX-XXX for a no-obligation consultation!”

Success Guide: FRBO Prospecting