Real estate rental can be an extremely profitable business. But one of the hardest things about it is keeping your space filled with quality renters. It can be a long and frustrating process, which is why many landlords now use realtors to fill their vacancies. And in addition to saving them time, here are the biggest reasons why you should use a realtor to fill your rental vacancy.
They weed out bad tenants
Real estate agents typically run credit reports and background checks on people interested in properties. They usually have their systems streamlined and set up for instant use. They’ll have each potential renter fill out a rental application, and then they’ll take care of all the details themselves. This not only weeds out less than ideal candidates. It also takes you off the hook for having to tell people they don’t qualify. Best of all, these background checks usually won’t cost a thing.
They do all the marketing
Most people are used to checking with real estate companies for rentals. But these companies also run ad sections in papers and online. They’re able to use MLS (Multiple Listing Service) to post your ad where any agent can pick it up. Additionally, many people who are looking at homes with a realtor will end up renting until they find something they want to buy. In these cases, of course, the agent will show them the properties they have listed.
It’s free until it’s filled
Realtors work on commission for rentals just like they do properties they sell. This means they only collect if they can fill your vacancy. Commissions vary from company to company, but the common rate is one month’s rent. Of course, in high-demand, high-cost rental markets, such as NYC or LA, these rates can be much higher. But either way, when you factor in the time you saved meeting potential renters and the money you saved on advertising, it’s probably well worth the cost.
They know the market value
Realtors price and sell properties every day. They know the market well. In other words, they can use the comps (comparables) of your neighborhood, along with the specs of your home to determine an accurate rental price. And in cases where you are underpriced, you may be able to mark your property up and make more money.
Renters are likely to go to realtors for property
Many potential renters would rather go to real estate agents to find rental properties for a few reasons. For one thing, most people trust realtors to find them homes of distinction. They usually realize that real estate companies have some criteria that must be met for properties they show. Another reason is to take the stress out of the search. In large metro areas especially, it can be overwhelming to comb ads, look for listings, and find the right information. And lastly, with an agent, they’re able to specify amenities or neighborhood types they’re looking for, and let the realtor do the legwork of finding them.
It helps make your job more passive
One of the beauties of owning rental property is that you can make money without slaving away at the job every day. But if you’re having to constantly show properties, run background checks, and take care of paperwork, it’s not really a passive income anymore. If you list your rentals with a realtor, however, they take care of all that for you, freeing up your time for other pursuits. It’s a good strategy for one property, and it pays off even more when you have multiple locations.