The danger of realtors turning to rentals for added income!

Real Estate Agent with Silas Frazier Realty, LLC

With the downturn in the market and the downturn in many realtors' pockets, some of them are turning to rentals for easy and quick money!  When a realtor list a property for rent and it rents the money is almost immediate.  Example: The property rents for $1500.00.  Most of the time the realtor gets the first month's rent.  If a realtor does only 5 properties like this a month, that realtor can make a good living or added income.  No problem right?  Here is where the problem can come in.


  1. The property condition. (Most of the times an agent will take the word of the owner that the property is in move-in condition.  Does that agent ask the owner for a certificate that states the plumbing, electrical, heating / air is in good working condition?)
  2. Property ownership (Does that agent gets a copy of the warranty deed and picture ID of all owners of the property?)
  3. Mortgage in good standing (Has the mortgage been checked to see that it is not in or heading to foreclosure?)
  4. Writing the lease. (Unless the agent has experience in filling in the rental lease, that realtor can put the landlord in a bad position)
  5. Laws governing Landlords and Tenants (These laws are much different than laws for buyers and sellers has that agent taken the time to learn them.)


These are only a few things the realtor should take in to consideration before diving in to the rental house waters.

Comments (2)

Theodora Wu
TJ Investments - Burien, WA

A Realtor might not have the experience to be a property manager.  If the realtor is managing the property they will soon find out that there is a lot more to it than collecting rents.  There is a mortgage to be paid, repairs that may need to be done or cleaning. Possible some yard work.  In some locations it may be necessary to register as a business, take classes and have an inspection.

Renting property is far more than collecting money.  There will be money leaving your pocket as well.

Oct 24, 2009 12:04 PM
Silas Frazier Jr.
Silas Frazier Realty, LLC - Tucker, GA

Very good comment!

Oct 24, 2009 11:46 PM