Why Rentals Might Be the Next Big Thing for Struggling Real Estate Agents and Brokers
The real estate market has been a rollercoaster in recent years. Between fluctuating home prices, rising interest rates, and economic uncertainty, many real estate agents and brokers have found themselves struggling to close deals. The traditional buy-and-sell market isn’t as reliable as it once was, leaving many professionals wondering what’s next. If that sounds like you, it might be time to look at the rental market as your next big opportunity.
Rentals have often been overlooked in favor of bigger commission checks from home sales, but as the market shifts, there’s a growing case for real estate agents and brokers to pivot their focus. Here’s why tapping into rentals might not just be a lifeline—but a goldmine.
The Current Challenges in Real Estate
Before diving into why rentals could be the short-term answer to a troubling real estate market, we’ll take a brief look at the struggles agents and brokers are facing today:
- High Mortgage Rates: Rising interest rates have made buying a home more expensive for buyers, pushing many out of the market.
- Low Inventory: Many homeowners are holding onto their properties instead of selling, which has led to a lower supply of available homes.
- Tough Competition: More real estate professionals are fighting over fewer listings, making it harder to close deals.
- Market Uncertainty: The economy is unpredictable, and buyers are hesitant to make big financial decisions.
With these factors making home sales harder to secure, it’s crucial to adapt. And that’s where rentals come in.
Why Rentals Are a Smart Move for Real Estate Agents
1. Consistent Income Stream
Unlike home sales, which can be unpredictable and take several weeks to months, rental transactions happen more frequently and provide a steadier stream of income. In many markets, agents earn a commission from landlords for securing tenants. This might be a fraction of what a home sale brings in, but when done consistently, it can provide regular cash flow to keep your business running.
2. More Clients, Less Competition
Not everyone is in a position to buy a home, but almost everyone needs a place to live. With high home prices keeping people in the rental market longer, there’s a larger pool of potential clients looking for rental properties. Plus, fewer agents focus on rentals, meaning less competition for you.
3. Building Relationships for Future Sales
Helping someone find a rental now puts you in a great position when they decide to buy in the future. By assisting renters today, you’re building long-term relationships with potential homebuyers. When they’re ready to take the plunge into homeownership, they’ll already have you in mind.
4. Catering to Investors
Many real estate investors focus on rental properties, whether short-term (like Airbnb) or long-term tenants. By working in rentals, you can establish connections with investors who may eventually want to buy or sell properties. This opens up doors for lucrative deals down the road.
5. Expanding Your Services
Include your ability to provide rental services in your portfolio. By presenting rentals as an additional service, you can offer landlords property management solutions, handle lease negotiations, and ultimately help increase tenant occupancy. Showing your ability to handle more than just residential sales makes you more valuable as a real estate professional and can lead to multiple income streams.
How to Get Started with Real Estate Rentals
If you’re convinced that rentals could be the next big thing for your real estate career, here’s how to start making it happen:
1. Know Your Local Rental Market
Research the rental trends in your area. What are the average rents? Which neighborhoods or communities are in high demand? Are there more short-term or long-term rental opportunities? Understanding these factors will help you position yourself as a knowledgeable rental agent.
2. Connect with Landlords and Property Owners
Start networking with real estate developers and/or property owners who have rental units. At MyState MLS, we call properties looking to utilize more than one real estate agent to market their property “open listings.” Many landlords are looking for reliable agents to find tenants for them. If you can prove your value, you can secure repeat business and even potential property management opportunities.
3. Work with Renters Like Buyers
Even though renters aren’t spending as much as someone looking to find or home or commercial property, treat them with the same professionalism and attention to detail. Find out their needs, provide excellent service, and help them find the perfect rental. They’ll appreciate the effort and remember you when they’re ready to buy a home.
4. Leverage Online Listings
Websites like Zillow, Apartments.com, and Craigslist are where most renters start their search. Make sure you’re listing rental properties there and keeping an eye on what’s available in your market.
5. Market Your Rental Services
Let people know you specialize in rentals. Use social media, your website, and email marketing to get the word out. Many potential clients don’t even realize that any real estate agent can help in finding rentals!
The Future of Rentals in Real Estate
With home prices continuing to rise and economic uncertainty still looming, more people will be looking for rental options in the coming years. That said, many of those renters could turn into future homebuyers who will likely look to you as a solid option when they’re looking for a home. By establishing yourself as a go-to rental agent now, you’re setting yourself up for long-term success.
Additionally, as the rental market grows and you continue to expand your network, new opportunities will emerge. Whether it’s working with corporate relocations, short or long-term vacation rentals, or even high-end luxury leases, there’s plenty of room for you to carve out a piece of the rental space as a lucrative niche in the rental real estate market.
Overall – Rentals Are Great For The Short & Long-Term
If you’re a real estate agent or broker struggling to close home sales, now is the time to consider adding rentals to your business model. Not only do rentals provide a reasonable and consistent income (in most cases, a closed rental could pay you as much as the renter’s first month’s rent), but they also help build relationships that can turn into future sales. Plus, with fewer agents focusing on rentals, the competition is lower, making it a great way to stand out in the industry.
The real estate market is always changing, but those who continue to adapt as the market evolves will continue to thrive. Rentals might just be the next best thing—so why not take advantage of the opportunity now?
