Should You Add Rentals to Your Services?

August 4, 2011

A sluggish housing market may be biting into your revenue stream: That’s why more real estate professionals are finding rentals can be one way to generate extra income for your business. Real estate professionals are also finding it an opportunity to help save some home owners from foreclosure by helping them turn it into a rental. It also can lead to new business: Other home owners find turning their current property into a rental frees up money to go purchase another property, or renters may also turn into home owners, too. 

By 2015, an estimated 4.3 million more rental units will be added to the market, and 1.8 million fewer owned-homes, David Vivero, CEO of RentJuice, which provides online rental relationship management software to real estate professionals, told attendees at Inman News’ Real Estate Connect. In other words, 463,000 home sales may be lost by 2015, which could be worth $2.4 billion in lost commissions. On the other hand, 150 million leases will be signed worth $6.8 billion in commissions. 

"If you offer only sales, [a total of] $11 billion in commissions [will be] out of your reach," Vivero told attendees.

While commissions from leasing rental properties is smaller than that for selling homes, it can provide "a steady income stream" that "help keep frustrated agents afloat," Vivero said.

Source: “Consumers, Real Estate Pros Tap Shift to Rentals,” Inman News (July 29, 2011)

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