Company fills empty homes for sale with managers

Many homes on the market sit empty. Others are staged and may look lived in. Then, some of them are lived in. There are 29 “home managers” working for Showhomes, a company that places people in vacant properties, which they maintain for a steep discount on the rent.

Home managers lives opulently, temporarily

Right now, Showhome’s Orange County/Los Angeles franchise (they recently opened a Beverly Hills branch) has home managers in homes collectively priced at $68 million-plus, and has managed homes that sold for more than $26 million since January, according to franchise owner Beth George.

The homes they occupy and stage — with the home managers’ own furnishings — range from $500,000 condos to mansions.

Showhomes, headquartered in Nashville, started in 1986 and began franchising in 1994. The company has more than 40 franchises across the country.

Here’s how it all works, from Showhomes and George:

Q. Why would a homeseller want a home manager?

A. Homes staged with live-in home managers typically sell more quickly and for more money than vacant homes. The home manager maintains the home and pays for such costs as electricity, gas and water. The home manager also can keep minor problems from becoming major ones, and helps in the sales effort by readying the house for showings.

Q. Is the home manager present during showings?

A. No, when the home is shown, they usually leave the premises — and in meticulous shape. The company’s Web site states: “Your home shows as good or better than it would if you still lived there.”

Q. Does Showhomes also act as a Realtor?

A. No, Showhomes does not represent buyers or sellers in the real estate transaction.

Q. What happens when the home sells?

A. As soon as an offer on the home is accepted, Showhomes begins to relocate the home manager, who expects to have to move on short notice.

Q. Who provides the furnishings?

A. The Web site states: “A critical requirement of home managers is that they have an inventory of fine furniture and accessories that meets our quality standards that they move from house to house. Showhomes supplements furniture as needed for each home.”

Q. What is the typical discount on the rent, in terms of percentage?

A. Home managers save 35-75 percent depending on the size, location, value and condition of the property. They pay their rent to Showhomes.

Q. What percentage of the home sale does Showhomes receive in Orange County?

A. The homeseller pays 0.5 percent ($1,000,000 = $5,000 fee). There is no cost up front; the seller pays at closing or termination of the contract.

Q. What type of folks need not apply to be home managers?

A. Anyone who smokes or has pets would not be welcome. Says George: “If they are not flexible and extremely neat this is not the job for them! If they are … they can live an exciting lifestyle in an uncertain economy.”

And save a bundle.