RealTown's RealTalk

Hi All,

I am frequently approached through my website by prospective renters seeking rental properties - condos and lofts in particular. I've always referred them to outside agents because I've never seen the ability to make much money in that area of the business. Plus, I do NOT want to become involved in property management.

But last year my local MLS began allowing rental postings via real estate agents. There are currently 499 rental listings in the areas I work. They offer varying amounts of commission (usually between $100 and $300 for a successfully negotiated lease), but some offer only $1.

My residential sales business is so slow for me right now that I'm thinking of adding rental representation to my repertoire. I'm seeking guidance from you all on how to guarantee payment when working with these clients. Here's what I'm thinking:

-Free e-mail links to available properties in a client's area and price range
-a $250 retainer collected upfront prior to any showings
-reimbursement of all or part of retainer upon collection of equal or greater commission with negotiated lease.

Of course there are other ways to find rentals in my area - Craiglist is a biggie. I wouldn't want to involve myself in a transaction not posted to the MLS unless the renter requested my help in negotiating terms.

What do you think?

Stephanie,

If you want to go after this market, you're going to have to dicatate your own fee.

My parents do the same thing with residential buyers - they don't accept the silly payouts from MLS - if the MLS fee is below the X% they charge for buyer representation, then the buyer understands they have to make up the difference, or ask the seller to pay it in closing costs.

You could do the same with rentals....if you can show enough value up front to the renter.

Sean Goerss
Realtor, St. Paul, MN
Co-Founder
www.RealEstateTechnologyExperts.com