Most REALTORS cringe when they think about handling a customer who is looking for a rental in our area. It is one of those LPA's or Low Paying Activities, and most agents refuse to deal with them.
Our team however has developed a business model that is centered AROUND rental properties and it has been a huge success or us. The formula is very simple:
Most people who are moving to our area are going to rent prior to buying, giving themselves a chance to get to know the area and see if they actually like it here (Most will decide they do, what's not to like). Because of this, we are able to establish relationships with future buyers in a buyers market. The second part of the formula is future listings. 99% of our clients are investors who have purchased property, mostly new construction, that they had hoped to "Flip" for a profit when the property was complete. With the downturn in activity and prices in our area over the last year, we are targeting these clients for our rental listings and will eventually have these properties in our listing inventory a year or two down the road. The third part of the formula is to have a commission structure on rentals that makes it worth while for an agent to show our properties. We do this by offering commission percentages comenserate with resale properties, unlike the majority of other brokers who offer minimal compensation to an agent who shows and rents their properties, typically only $100.00.
With most agents in our area crying about the lack of business, our agents are all busy and building relationships with sellers and buyers of the future while generated a significant income now.
Let's talk about rentals....