Part 1 of a 2 Part Series
Most successful agents will agree, rentals are not much fun. On a rental transaction you get to do pretty much all of the work, but receive very little of the reward that you would get from a sale contract on the same property. If you have the Tenants, it’s even worse. Very likely you’ll drive them to home after home, and expend all the same energy (not to mention gas) that you would for a sale transaction. And when you are all done, you get a few hundred dollars, often times about enough to cover your gas bill and leave you about fifty cents an hour in “profit”.
It’s true! Rentals suck! So why do I recommend you do them? There are two redeeming reasons to take on that next rental client who calls.
Rental Redemption Reason #1 – Today’s renters are tomorrow’s buyers.
Not only are they future buyers, but you probably know the exact month he or she will be in the market to buy. How many leads do you have where you know they’ll buy something, sometime, but they just aren’t ready right now. With a renter, that doesn’t happen. You know EXACTLY when their lease ends, so you know exactly when they need to start shopping in earnest. Usually you know this before the renters themselves even realize it. So you can guide the transaction from the start, and keep the process moving along smoothly, assuring your clients (and your commissions) are safely under control.
Given that most busy real estate offices have very few agents who really want to work rentals, you’re likely to find lots tenant rental opportunities just by letting the other agents know that you’ll be happy to work them. As we’ve already established, most successful agents don’t want the hassle of a tenant client, and most won’t even ask for a referral fee. In that situation, you should consider renters to be one of your best lead programs. So work them like leads. Put them on a carefully planned follow-up system based on their lease ending date. Ramp up your marketing efforts to them as their lease end nears.
But keep in mind that unlike most leads which require a monetary investment on your part, these leads pay you for the privilege of being in your database. Sure, lease commissions are nickels and dimes, but that beats the heck out of shelling out hundreds (or thousands) of dollars for leads that may or may not ever result in commissions.
Imagine—a lead system that pays you, just for signing up! That’s the right way to view a tenant client!
By the way, just as a side note, at United we provide the lead follow-up system for your tenants. Our full featured CRM includes several types of prospect follow-up drip campaigns, including a system designed around turning your tenant-clients into buying clients. Because it’s not enough to be a 100% commission brokerage. We also want to be the brokerage that helps you with the best tools and best service to help you sell more.
Look for Rental Redemption #2 in next week’s Hot Tips Tuesday email!