Are Lease Homes Second Class Listings?

I don't list homes for lease, but we do help people who are trying to find a place to rent.  Frankly, I've found that it's not usually worth my own time to list lease homes, since I would handle them in the same way you described here, and the return on my time would be much lower.  That being said, if I DID list a home for lease, I would be responsive.  No excuse for not calling back.

I agree with Joe (who also agrees with Judy and Denise)...it can definitely be future business or referrals where one can show off great professionalism.

My market, the Houston Bay Area, is saturated with sale listings due to recent NASA contractor layoffs; therefore, many owners are opting to lease their home in lieu of selling it, again, because the market is so saturated with sale listings.  The rentals get the same care as my sale listings, in fact, I have professional photos taken of the rentals, just as I do of the sale listings (it's a small expense to make sure the property looks it best ... and I'm bad with a camera!!).  I have 3 rentals listed right now.  Also, I've actually picked up clients who viewed my rentals, and I converted them to buyers rather than tenants.  Yes, they're a lot of paperwork, but in some cases, the owner's will list their house for sale in the future ... I have one now that is only leasing because she would have to pay the $8k tax credit back if she sells this year (she's only been in it for 2 years).

Thanks for posting!

Brent and Deb -- A rental listing should be treated no different than a property that is for sale.  I have had the same issues trying to get rental appts.  where it takes me forever to schedule and confirm.  I agree.  If you can't represent the rental owner with good service, don't even take the listing. 

Well, I gotta tell ya....I got into this business because "I work for food", and like Greg said in #1--money comes in all ways.  In this market, we would be foolish not to work leases/rentals, given the opportunity, because many folks have been misplaced from foreclosures, and WILL be future buyers.  Other folks simply choose to rent over owning.  Nothing wrong with that, either.

A client is a client.  If they are sellers who can't sell, then we need to help them cover their payments.  We either assist them with a tenant or turn them over to someone who will.  It could come back as a listing in a few years.  The tenant may come back as a buyer in a few years.  Each of them could be good referral business for you.  That is 2 more people out there speaking good things about you.  I personally will do both.  Because I own properties, I  will sell or property manage.  I only do about 10 so far, but that is an extra 1,000/ mo to cover overhead. 

A lease home for purchase or to rent out does not deserve to be a second class citizen but the payout to agents is far less, hence priorities are where their significant money is being made. But communication should be top notch no matter what. If not, the agent is not doing their job.

Hi Brent and Deb,

At least we all know that you'll take care of any leasing clients. ;)  Thanks for sharing your story!!

~Grace

As a professional, I make every effort to represent all of my clients efficiently, including renters.  In the last 3 months though, I have turned in completed applications, credit reports,etc. to two different listing agents and never received any response whatsoever.  Even if they would just text me a definite "NO", I would be satisfied!  No returned calls or emails, nothing.  If you don't want to take lease listings, I understand.  They are a lot of work for very little money. But if you do, please be responsive.  How will these "clients" regard agents in general if we are so ineffective for them?

I work a ton of rentals and they are most appreciative of a returned call. What I hear most is that they have been told by other agents that a rental is not worth their time for the money and will not do them.

Some of my best referral for short sale listings and buyers have come from renters.

SSSHHHH. Don't let everyone know.  ;-)

I think the biggest mistake made by those listing rental properties is not advising their landlords to pay a fair commission for the amount of work involved in getting renters into the house.

Leases have been my bread and butter for the last year.  I like them because they pay faster, and there is not all of that headache about inspections, negotiations, etc. 

They can be a headache, because you normally have to show about 5 prospects just to get one that is qualified.

What I don't like is that in some areas, the agents only offer 25% commission and I try to stay away from those areas.  I think 50% is fair, especially since the commission is already rather small.

I do very few rentals, but last time I did, the renters ended up buying a home (with me) and then sold it three years later (with me.) 

I would certainly do more of them for this reason alone.

I think any client deserves good service regardless of whether they are sales or leases.  I've done many rentals over the past few years and though they can be lots of work they have provided steady income in an otherwise slow market.

I've helped a few clients find rentals, and refer any listings to the property management department in my market center. Seeing the encouraging results from other agents in my market area tells me I should step up my efforts.

I have handled rental listings before, and I treat them no differently than a regular listing!

Leases are alot of work and very little money.  A Leasing Agent has to work with significant volumes to make a decent living from it.

I decided to go into leasing for a property management company last year.  I had an area fit for 2 full time agents.  I had about 35 rental properties at any given time.  It was almost impossible to answer all my calls, emails, return messages, show properties, walk applicants through the application process, keep in touch with the owners, and not to mention all the behind the scene admin work involved, and all the field work as well (signs, pictures, lockboxes etc).   No matter how hard I tried I could never get 'caught up' and I could never make everyone happy.  Owners were cancelling right and left, applicants were 'walking' if we didn't approve them and hand them over keys quickly enough, it is a tough stressfull market.

I imagine that most large property management companies operate in similar fashion therefore offering poor service. 

Needless to say that I quit and went back to doing sales full time.   Just wasn't for me.  

Denise