The Real Estate Agent’s Guide to Reaching Absentee Owners

If you’re not reaching out to absentee owners, you could be leaving listings on the table. The share of homes owned by absentee owners is on the rise in major U.S. metros. Read on to learn why this lead type may be motivated to sell and other benefits of working with them. 

What Is an Absentee Owner?

An absentee owner is someone who owns a property but does not live in or actively manage it. This is often a landlord or investor who resides in another city, state, or country and relies on a local property manager for upkeep. 

However, the term “absentee owner” could also refer to someone who inherited a distant property or owns a vacation home they use only occasionally.

Why Absentee Owners May be Motivated to Sell

There are many reasons an absentee owner may be motivated to sell their property:

• Tired landlords. Owning real estate from afar is inherently challenging. Some landlords may no longer want the responsibility and costs, or they may be tired of dealing with problematic tenants, turnover, and maintenance issues.
• Major life changes. Divorce, retirement, relocation, health issues, and other major life changes can prompt an absentee owner to liquidate or simplify their real estate holdings. 
• Inherited property. Some absentee owners inherit distant property they can’t or don’t want to maintain. Plus, if there are multiple heirs, they may need to sell the property to split its value evenly. 
• Favorable market conditions. Rising home values or a seller’s market may motivate an absentee owner to cash out and take profits while they’re ahead. 
• Financial strain. If an absentee owner is faced with job loss, rising costs, or other financial stress, selling their property may be more appealing than holding on to it.

Benefits of Working with Absentee Owners

As a real estate agent, working with absentee owners has many benefits.

For one, absentee owners are often motivated to sell. This can help you win more listings and relieve owners of a financial burden. 

In addition, absentee owners often own more than one property, opening the door to repeat business or portfolio sales. Meanwhile, absentee owners tend to be less attached to their properties since they don’t live in them, leading to quicker and more pragmatic selling decisions. 

Finally, most agents focus on traditional homeowners, creating less competition for absentee owners who still need the help of a local expert to sell (and buy) real estate. 

Common Mistakes to Avoid

That said, agents should avoid common pitfalls when engaging absentee owners. 

For example, vacation home owners tend to be less motivated to sell than other absentee owners. As a result, going after these types of owners may be less rewarding.

Similarly, don’t assume that all absentee owners want to sell. Before offering your agent services, ask questions to qualify leads, like “Are you managing this property from out of state?” or “Have you had any recent tenant issues?” 

Lastly, avoid using outdated prospecting methods. Instead of canvassing entire neighborhoods with postcards or going door-to-door at random, invest in a real estate data software like PropStream that aggregates property data from public records and private MLSs and lets you filter searches to weed out motivated sellers. 

Example Absentee Owner Lead Scenario

Imagine you’re a real estate agent in Phoenix, Arizona. You use PropStream to search for absentee-owned properties in a high-demand neighborhood. One lead stands out: a three-bedroom rental property owned by a couple living in Los Angeles, California. 

After skip tracing their contact information, you give them a call. During the conversation, the owners share that they’ve owned the property for five years, but recent tenant issues and rising maintenance costs have made it less profitable than it once was. They’re also nearing retirement and no longer want the hassle of being absentee landlords.

You offer to do a free market analysis and explain how demand in the neighborhood is surging. Intrigued, they agree to a virtual meeting where you walk them through comps, the potential sales price, and your marketing plan. Within a week, they signed a listing agreement.

The home sells in under 30 days for above asking price. The couple is thrilled and later refers you to a friend who also owns a rental property in the area. 

In the end, one quality absentee lead turns into a closed deal and a new referral—all because you used the right tools and asked the right questions.

How to Use PropStream to Find Absentee Owners

Here’s how you can use PropStream to quickly identify and contact absentee owners: 

1. Choose a Search Region

In PropStream, search properties by city, county, zip code, exact address, or Assessor’s Parcel Number (APN). You can also use the draw tool to search a custom area.

2. Apply Search Filters

Next, narrow your search to properties with absentee owners by applying these filters: 

• Under “MLS”
  • On-market: NO
• Under “Owner Information & Occupancy”
  • Owner Occupied: NO
• Bonus: Filter How Far the Owner Lives from the Property
  • Absentee Owner Location:
    • Out of State
    • Out of County
    • Local

3. Create a New Lead List

After populating your search results with absentee owners, create a new lead list. You can give it a custom name for easy reference, such as “Absentee Owners in King County, WA” or “Divorced Absentee Owners in Salt Lake County, UT.”

4. Start a Marketing Campaign

From there, you can use PropStream’s built-in marketing tools to contact absentee owner leads.

For example, you can skip trace their phone numbers and email addresses and set up automated email marketing campaigns directly within the platform. Alternatively, you can send personalized direct mail postcards to their mailing addresses. 

5. Follow Up

PropStream can help you keep track of leads that respond to your outreach so you can promptly follow up with them and win new clients. 

Ultimately, the platform makes it easy to quickly find absentee owners in your target market, help motivated sellers in need, and grow your real estate business. 

Sign up for your free 7-day trial today!