Since its launch in 2016, RentSpree has served 1.1 million rental units across the U.S., Lucarelli said.
Miami-based real estate agent Yancey Valdez entered the real estate industry in 2010 and has found success focusing on rentals. Valdez joined the company without a network or a clear strategy for generating income. Rental 1 Sales 1 Real estate In Fort Lauderdale, he quickly started working in rentals.
Within his first year on the job, Mr. Valdez was closing an average of three rentals per month and earning approximately $70,000. This is much higher than the industry average for new real estate agents.
In January 2023, Mr. Valdez established his own brokerage firm. residential real estate, where he continues to assist clients with both sales and rental listings. Reside Realty has a team of five agents and currently closes approximately 10 rentals each month, generating approximately $100,000 in annual revenue for the agents. Valdez attributes much of his own success to his focus on rentals, and is now passing on that expertise to new agents.
“Rental work is good because you can get to work right away,” Valdez said. “No matter the economic situation, there’s always a need. There’s always someone who needs a rental. From there, start talking to people and building your sales skills.
“Signing a rental agreement is like selling a home on a smaller scale: you talk to your clients, you consult them, you find out what they’re looking for, you show them what they’re looking for, you sell them on real estate. , you need to make an offer, accept the offer, and close the deal.”
make money
Compensation practices vary widely across the United States, but it is common for agents representing landlords to charge a commission of 5% to 6% of the annual rental price of the unit. If you have a rental agent, you may be able to split the commission in half.
Alternatively, if the rent is low, the tenant’s agent may only receive a flat fee rather than an installment. Regardless, Valdez still encourages agents to get into the business, even in markets where they only accept referral fees.
“Even in those markets, I still tell my agents, “You might get paid less, but it’s always beneficial because you get to talk to people and meet people instead of just waiting around.” ”
Lucarelli highlighted two reasons why agents want to focus on rentals. First, agents can earn a commission from rental transactions, although less than from sales. Second, by working with renters and landlords, agents can build a sphere of influence. When those renters and landlords eventually become buyers or sellers, they’re likely to turn to agents they’ve worked with before, he said.
“I worked as a real estate agent,” Lucarelli said. “Then I realized that the most successful agents in my office were doing a lot of rental deals. And it was some kind of dirty secret they were keeping because they… We never talked about it, we never had any support from our brokers, we never had the tools or information on how to handle rentals.”
market reality
According to one study, as of January 2022, the median home sale price in the United States ($433,100) was nearly six times the median household income ($74,580). report by visual capitalist based on federal reserve data.
As a result of these economic realities, renting remains a popular and viable option for the majority of Americans.of median age According to , the percentage of first-time homebuyers is 36 years old. National Association of Realtors.
Real estate agents can provide significant added value to both landlords and tenants. For renters, agents can provide a streamlined, guided process that ensures a smoother home search experience. In an era where online product information can be outdated or inaccurate, agents can provide up-to-date information and even uncover off-market opportunities.
Additionally, agents can help renters with paperwork, help them avoid fraud, and provide a layer of security and expertise. For landlords, agents streamline the tenant discovery process, saving time and effort.
Rental properties remain in high demand among households that prefer to rent or cannot otherwise afford homeownership.
February 2024 data core logic According to the report, rents for single-family properties rose 3.4% year-on-year, the highest growth rate in 10 months. New York City’s rent growth doubled that pace at 6.9%, with Seattle (+6.8%) and Boston (+6.4%) not far behind.
Major markets such as Honolulu, San Diego, San Francisco, Detroit, and Houston also outperformed the average U.S. growth rate over the same period. Conversely, prices in Miami (-3.1%) and Austin (-1.3%) recorded year-over-year declines.
CoreLogic says these trends “may again indicate that Americans are slowly returning to larger, more expensive coastal cities.” In contrast, cities like St. Louis, Charlotte, and Orlando We hypothesized that cheaper metropolitan areas led the country in rent growth. In February 2023.
Client accommodation
To Gary Mullin, Chief Operating Officer corcoranIt is important for real estate agents to be responsive to their customers’ needs.
“We’re in the hospitality business, right?” Marin said. “We’re not in the residential real estate business or the sales business. This may be a way for people to make money, but we’re in the hospitality business. And we’re in the hospitality business, both short-term and long-term. If you want to be of value to your clients, it’s important to be knowledgeable about the market.
“And it’s important to be able to accommodate all of your client’s needs. Just because you have a sales plan today doesn’t mean you won’t be a rental customer tomorrow. So I think it’s really important to adapt to the overall market. Masu.”
Anthony Derecave, who has focused on leasing throughout his career in real estate, currently runs a highly successful team with Corcoran in New York City, closing more than 500 rentals each year. DelleCave attributes his success to building strong relationships within his rental community.
“I’ve always been very particular about the rental business and have grown with the business,” Derecave said. “Through this work, I have built many relationships within the rental community with landlords, agents, management companies, custodians, and everyone else who drives the rental business in New York City.
“The sales business evolved on its own. It’s similar to planting seeds. You rented seeds and planted them all over your garden and waited for them to bloom. And as they bloomed, you planted more and more. So I’ve never focused on sales. I’ve never really done sales campaigns or anything like that. The business was built strictly around the rental business.”
