RANT - Agents on Rental Commissions - What's Typical

[Tony Gilbert]

Hi Jennifer and everyone...

First, let me vent about something. I ran across a thread on City-Data that I had to comment on. Again, it's no wonder many people hold agents in such low regard when there are countless threads and blog posts which clearly demonstrate what the main priority is for them (the agent) - which is the MONEY, not the CLIENT! I mean, I COMPLETELY understand that rentals themselves are not the most lucrative prospect on the planet, but letting that attitude guide you is so counterproductive and shortsighted. Anyway, my point is demonstrated in my post.

http://www.city-data.com/forum/real-estate-professionals/1263369-what-your-company-policy-rental-commissions-3.html#post19762989

But, I do wonder what Jennifer's position is on rentals, and how she fit it into her business model while still being "Soulful." What are others doing? I mean, I guess depending on the commission structure, one could be a go-to person for rentals, but that's probably not practical. But the rental markets are only going to increase, along with the rents, IMO. Any thoughts?

[Jennifer Allan]

Interesting read - thanks for the link!

I actually don't have a problem if an agent doesn't want to do rentals due to the low ROI. I never did them, but like the Idaho guy/gal, it just wasn't something real estate agents typically got involved with. In Denver, I don't think there even was a section in the MLS for rentals - and as a landlord myself, I never found any central resource for available rentals.

Many SWS'ers do handle rentals, and acknowledge that the paycheck isn't even close to being worth the time invested EXCEPT as an investment in the future good will of the people they help. But if I were busy with buyers and sellers and had limited discretionary time, I'd likely defer/refer rentals to someone who does it full-time (i.e. a property management company).

That said - your experience in Seattle is shameful - that agents who have LISTED rental properties don't respond. Crazy crazy... If someone agrees to take on a client, regardless of their NEGOTIATED compensation, they should represent that client to the best of their ability. What's in question here, as I understand it, is whether or not real estate agents SHOULD take on rental business. And again, I'm fine if they don't want to, but if they do, do it right!

[annewest]

Just a quick story vis a vis the goodwill thing: I helped someone find a rental apartment...and this knowing she was never going to move or buy here. She was in town for a one year assignment. Nevertheless, I had the time and looked at it as a way to get to know a part of the market I wasn't that familiar with.

We found her a good place and she was very appreciative. And, as it turns out, she works in HR for a big company and helps coordinate relocations for executives and managers. She asked me for a bunch of cards and says she will recommend me to anyone moving to the area.

Have I gotten business from her yet? No, but I plan to stay in touch, and I bet I will, sooner or later.