Sorry Mr/Ms. Rental Tenant I Just Can't Work For Free Anymore!

THis is a great post and right on where I have been wondering... is it worth it.  Thank for the share.

Thom, I'm also changing the way I work with renters. I charge an additional commission, i they do not agree with that, oh well. Also meet with them in the office. When I lived in Boston and New York  - I remember having to come up with an additional month rent for the fee - that was 4 months up front. In NY it was 1/2 month fee. I guess things work differently in different places. In the south Florida area in general the co-op is 1/2 months rent or 5% of annual rent. It they can not see the value of our service let them go - so we can enjoy our time better.

We do rentals especially when we represent our investor buyers, but with renters, it really depends on what they are looking for and price range.

Thom, reading your post makes me thankful that our MLS does not allow rental listings...whenever I get any inquiries from renters, I simply refer them to Craigslist! Congrats on the featured post! :)

Leilani

Hi Thom - Good idea.  You can present it as a positive:  "My fee to find you a rental is only ...", and if they don't want to pay, you won't waste your time and you haven't necessarily lost a future client when they're ready.

We all know how little first time buyers know about the Real Estate market and Renters know even less.  Yes, many of them contact multiple agents and contact Landlords directly via Craigslist. But I try to give them the benefit of the doubt. They just do not understand how we work, that one agent has access to all the listings in the MLS, that the Landlord pays our commission etc. It is up to each of us to decide if we can afford to take the time to educate them and help them find a rental.  For me the answer is no, I'd rather use the time to find buyers and sellers.

Good morning Thom,

Rentals are their own niche market, and one that can be a drain to your bottom line working them occasionally.  I refer rental inquiries to an agent that specializes in them.

If your renters are not realistic, it's not worth it to work with them Refer them to a less experienced agent, that is not busy, and could use the business!

If only we could charge a retainer fees to potential buyers!

Thom, this is a business and we have to treat it as such. If something is not profitable, we have to look at other things.

Just this past weekend I had a renter reject the onbly condo that was available because she felt it was too small after coming out of a 4 bedroom house. They can be nerve wracking

Here in Manhattan, rentals are a huge business and can be quite frustrating like you have explained.  To me, making the decision of who you are willing to work with and under what conditions is going to save you a lot of frustration. 

Thom -- I have been there as well. I now require their application, credit report run, and signing a tenant representation agreement before going out.  If I get everything, then I know they are serious.....or not working with someone else even though they may tell me they are not.  About a year ago, I had a would-be renter tell me she thought I received $100 everytime I showed a rental so she felt justified asking me to show her 6 rentals.  Wish that were true!

Thom, I think each of us has to deal with these issues in the manner that best suits our market and our own business plan.  I rarely work with rentals at all, and no amount of up-front retainer fee would make me change my mind.  It sounds to me like that may be a good solution for you, however, because you'll surely separate the serious from the casual rental client.  When someone has "skin in the game" they're more likely to accept your advice, respond to your calls, etc.  An hourly pay scale might be another option.

I don't do any rentals.  Good for you for standing strong my friend.                                                                                         

Aint that the truth!! People dont realize that it takes just as much effort to find a rental AND MORE! Ive always taken pride in saying that I dont charge a retainer fee but time is out for that! Its ridiculous! I learned a saying at my very first real estate company about 6 years ago..."Buyers are liars"

I dont really take the time to help renters, maybe someone looking to rent but the renters no.

Does anyone use a buyer's agent agreement with renters?