While working with rentals might not be the first choice for real estate agents, there is hidden potential in these opportunities. Even though agents may not make as much money up front when dealing with rental properties, these transactions allow you to make money quickly, and meet potential investors and buyers that may want to invest in the future.
Make Money Quickly
Real estate rental transactions happen fast, much faster than purchasing or selling a home. When dealing with rentals, decisions are made within a few days – opposed to the seemingly endless negotiations and contract signings for purchasing. Additionally, rental property leases typically last 12 months, leaving more opportunity for you to make a fast dollar.
While the amount of commission on a rental property varies, and relies on a number of things, the transaction is typically quick to close.
Investors Are Looking to Buy, and Sell
Here’s what we know. Typically, people investing in a rental property will be looking to buy more than just one. Some investors may only buy one or two houses each year, others are known for purchasing dozens when the time is right. Getting just a few of these investors in your network, and familiar with your name can pay off in the long run.
Since networking is the name of the game when it comes to real estate, you’ll be top of mind when these investors are then looking to sell. Even owners, who only own one or two extra properties will be looking to sell them one day.
Networking and Referral Opportunity
Investors are generally involved in the community in which they own in more than one way, and therefore have a big network of locals who may one day be looking for a real estate agent. Investors know the power of networking and always like a good deal, so if you do a good job chances are they’ll be back…and talking about it.
Tenants could potentially buy one day
On the other side of the equation, real estate agents should be looking at tenants as potential (future) buyers. While they’re in a rental situation now, one day they may be looking to purchase. If you act as an informative, helpful and responsive real estate agent now, chances are down the road you’ll be getting another call.
So, the next time you have an opportunity to work with a rental property or investor, we recommend taking the chance. Rentals are typically quick transactions, that pay fast and open many more doors to network with investors, owners and other members of the community.