Some agents avoid rentals because they pay less than home sales., but, beyond steady income, landlords and renters can become leads when they’re ready to buy.
WASHINGTON – According to a survey from RentSpree, a software provider for tenant screening, renter management and more, more real estate pros consider rentals a way to expand their business and add an added revenue-generating opportunity.
In 2020, real estate agents with three years or more experience were three times more likely to complete a rental transaction, according to the study of 581 industry professionals; and 30% of respondents said that their brokerage completed more than 50 rental transactions last year, an increase over the prior year.
“Experienced agents have cultivated a robust clientele, among which are investment property owners that need renters,” the RentSpree study claims. “These types of clients will rely on their agents to identify and screen potential tenants.”
Newer agents, however, often view rentals as a waste of time, the survey finds. That view may be due to the ratio between time spent working a rental listing and the compensation.
“Newer agents tend to underestimate the potential that rentals can bring to their overall real estate business,” according to the study. “Primarily, lead generation and substantive client relationship building can result in future home sales.”
The California Association of Realtors® recently partnered with RentSpree so that its members can offer a digital rental process to their clients, using the platform for screening, signing a lease, and more. RentSpree said that it had a 125% increase in rental applications in the last year, and the number of site visitors has tripled.
Source: “The Future of Real Estate: Rentals + Technology,” RentSpree (2021)
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