Hello gang,
I've been in residential sales for about a year now and I have access to a large number of rental leads, but I'm not sure how the process works.

I'm located in Pennsylvania, so would you please explain what's involved in rentals? If someone contacts me and says "I'm looking for a rental in a specific area for a specific monthly rent.". What happens next? I'm a member of our local MLS, so I have access to a large amount of rental properties.

With sales, I setup an appointment, I show the property, I complete the paperwork, schedule a closing and finally a settlement. With rentals, do I need to show these rental properties or do renters have to meet directly with the landlord? Am I just a middle man? Also, what type of paperwork is involved, what type of contracts? When do I get paid? Can you direct me to a place where I can learn more?

I appreciate your advice in advance.

Thanks,
Russ

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Russell Volk, REALTOR®
Mid-Atlantic Real Estate
Feasterville, PA
Bucks County Real Estate | Newtown, PA Real Estate | Doylestown, PA Real Estate.

I don't do rentals anymore, but when I did I would give the potential renters a list of properties for them to drive by and check out. I would instruct them to pick out the ones they want to see. We would then view the property. If they were interested I would take them to the list office to do the paperwork. Since the progress really isn't like a sale their is no negotiating on your part. Just drop them off, leave a card, and wait for the check. Be aware most property managers have their own forms and applications so if you use one from your office they most likely won't accept it and your clients will have to do it all over again.

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Brevard MLS Search
Satellite Beach Real Estate
Advanced Brevard MLS Search

Thanks kyle422.

So it's like sales? They pick what they want to see and then you schedule a showing and take them there?

Now, what type of paperwork is involved? Also, is my broker getting paid and then I get the cut? I assume the commission works the same way as in residential sales.

Thanks again. Very informative.

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Russell Volk, REALTOR®
Mid-Atlantic Real Estate
Feasterville, PA
Bucks County Real Estate | Newtown, PA Real Estate | Doylestown, PA Real Estate.

I've found that you must be very concious of your time spent per client rental. After splitting with my broker, paying taxes and admin costs, I make hardly anything. (Avg. rental rate here is about $1200 a month) In Houston, we get 50% of one months rent, so my GCI is $600. Wow.

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Steve Castaneda, Realtor
Keller Williams Realty
The MyHomeHouston Team

Specializing in Houston Real Estate. Feel free to visit my Houston Real Estate Blog or read about Real Estate Technology for agents.

Here in Philly, the rate is also 50% of one month's rent. Even if I make $200-$300 per rental and if I can do 3 or 4 of them a month, that's an average of about $1,000 a month extra.

I just want to learn the process, the paperwork and what to lookout for. I get about 3-4 rental leads per day, so I don't have to spend money on advertising or marketing my services.

Is there a place where I can learn more about it?

Thanks again.

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Russell Volk, REALTOR®
Mid-Atlantic Real Estate
Feasterville, PA
Bucks County Real Estate | Newtown, PA Real Estate | Doylestown, PA Real Estate.

You know they say RE is local. I'm in AZ, we are 2nd largest rental company in town (NOT a large town at all). Other agents refer possible tenants to us all the time even though we don't pay for leads (we get them constantly from lots of sources). Its just good PR among agents. No way would we have other agents showing our properties.

In my area, rentals are listed usually at a flat fee co-op. In my limited experience, I worked harder finding a rental than a home for sale and the fee did not cover the expenses, let alone my time.

I might also add, that rentals are highly negotiable in my area, where rents are typically average $3500 a month and the co-op is about $500, before a split.

Agents that list rentals, tend to do so to accommodate a potential client.

Lots of people around here don't pay agents. You're limited to the small selection in the MLS which are usually higher-priced rentals and have a limited pool to choose from.

Most management companies just don't want to pay for agents who bring them tenants. Plus, as was stated earlier, it's a lot of work for not much money if your brokers got her hand in it.

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