Got a question. I am waiting for my license to be issued but am really trying to learn as much as I can before I am "legal". I have been reading books and blogs and all sorts of things to "prepare" because I do not want to be another statistic, one of those starry eyed new agents who crashes and burns in two years or less.

I work right now as the secretary/receptionist in the real estate office. I observe what the other agents do and sometimes I'm flabbergasted.

Yesterday two folks came in the office looking for a long term rental. He is in the navy and going to be deployed for 3 years. Her parents live in this area and their kids have been in this school district so they want to stay here.

***My internal lightbulb goes on and I think...potential future buyers here! Ding Ding!***

Our office (and most others in this area) does NOT handle long term rentals, only vacation weekly rentals. A few agents here or there have long term rental listings but not many.

The agent on the floor however just goes and prints out something from an agent from another office and hands it to them, saying that maybe that agent can get them something, and out the door they go.

Inside I was writhing - I thought that if at all possible, never send a potential client to a competitor when it would be just a little effort on your part to help them. I questioned him afterward and he said "They're only renters. Plenty of other fish in the sea." He seemed very unimpressed when I said "But perhaps two years down the line they may decide to purchase a house; who are they going to come to...the agent that sent them to another agent, or the last agent they dealt with?"

Yet, he has no listings, one sale in pending, but other than that, not a whole lot of action. Our office gets very few walk ins because of the weird location we're at.

My thoughts on handling these people would have been to sit them down and talk to them a bit, then offer to call the agent I knew with the rental, (which also had option to purchase one it.) At any rate, I would have wanted to make them MY customers, not hers.

I'm just wondering, am I being ignorant here? Would I have been wasting my time? I have learned that some agents have clients they've worked with for months and even up two 2 years before they actually buy something. I guess I just thought it's a good idea to cultivate a relationship with someone rather than ship them off to someone else cause "they're only renters."

Any thoughts?

In general the rental market, unless you specialize in it including the role of landlord, is not worth the trouble. Relatively few are converted to buyers within a reasonable time.

It's funny you posted this topic. I am one of the few agents in my office known to help renters out. The reason I do this is to build relationships with people so when they do decide to buy a home, hopefully they will consider using me. I have wasted my time with many renters that have turned their back on me and found something somewhere else and renters that just don't return my phone calls or emails. But I still try and work with renters because I think this type of relationship opportunity is great. The only renters I get tired of are the ones that want to rent a home across town and they are too picky to choose one after we have seen around 5-10 properties already that fits their needs. Sometimes renters are the pickiest type. Speaking of renters, I need to contact some of my old rental clients to see if they are ready to buy now.

exactly - my thoughts on it were to spend some time with them to be able to add them to your SOI and cultivate a relationship, not necessarily expecting an immediate financial gratification. I guess I was thinking these people might possibly be good prospects because of a strong desire to stay in the area (family ties and good school district). Also, they could recommend you to their friends....etc.

Perhaps if you're a busy agent with lots of deals going on then you don't need to be bothered, but if you're not that busy... :rolleyes:

Statistically, every year, 30% of renters become home owners. Renters are willing to pay up to 40% more monthly payment to own a home vs. the price they pay to rent. In other words, renters paying $800/mo to rent a house will pay $1200/mo (including PITI) to own a house.

If you want to specialize in that niche market - first time buyers/converting renters to owners, then you need to know that it's long term prospecting, but very fruitful.

We prospect to non-owner occupied properties, which usually means there are renters in there. Fast, easy.

Easy ways to get the addresses: 1) call your title company and ask for lists of non-owner occupied properties in areas you want to target 2) watch the property management ads, many put the addresses of the properties in the ads - add those addresses to your snail mail prospecting system

Plan to snail mail at least 12 times a year with a minimum of once a month. Double that is even better. Teach them about their opportunities.

Just in the past week we've converted 2 people who were looking for long term rentals/lease options because they didn't think they could qualify to buy. Both are now under contract to buy a home.

When renters come in, talk to them about their situation, ask them why they are choosing to rent, why not buy, etc.

It's a very lucrative market.

I work with renters not because THEY are going to buy a house but because the LANDLORD or one of the landlord's neighbors may want to SELL that waterfront rental some day.

Dearest Perky,

Whether or not you end up getting to know these renters, let me say one thing... You have what it takes to be a great real estate agent! In your first year you should be looking for any excuse to meet people, to help people, to add names to your SOI. In my first year, I showed relocating renters around town just in case they might want to buy someday. Why? Because I had ENTHUSIASM! (and so do you.) I never questioned whether or not it was a good idea, whether or not it was a waste of time... I just did it because I loved my new career and was willing to try anything.

What works for you will be far different from what works for the Top Dog down the hall. No one can tell you what will be productive for YOU... at this point, YOU don't even know.

My point? If you wanna go after renters, DO IT! If you don't wanna go after FSBO's (for example), DON'T! This is YOUR career, not mine, not your broker's, not anyone else's.

Trust your gut and go get 'em!

Don't work with renters to do this - work with non-owner occupied demographic farms. In other words - prospect the owners of the properties for listings.

What is an example of a non owner occupied demographic farm?

Thank you, Jennifer! I am chomping at the bit waiting for my license to come!!!!!!

This is interesting - my office recently moved and I was just updating the "templates" I use for initial inquiries to my website. Here is the one for I use for those who sign-up for rentals.

~.~.~.~

Hi –

Thanks for visiting my website www.AtHomeInKokomo.com and signing my guest book.

Although I realize you may simply be gathering information about rentals right now, I do want to let you know we do not handle rental properties other than for sale. You can find “resale” rental properties by searching the MLS for both single family and multi-family properties. If you are looking to rent a home, I do have a few resources I can share with you if you would like to call me (765-xxx-xxxx) or send me an email.

If you are looking to rent a home, you may be surprised to know you may be able to buy a home for about the same as rent payments. There are several loan programs available that require little or no down payment. There are also down payment assistance programs in which the seller helps with the down payment and closing costs.

Let me also take a moment to explain how I work. My policy is to respect your online privacy and proceed at your pace. I will never bombard you with questions or information. When you need more information or would like to explore your real estate needs further, I will be happy to assist you.

To receive a list of properties currently in the MLS – complete with prices, addresses and descriptions – sent directly from the MLS, click on the link below and fill out your search criteria.

http://www.xxxxxxxxxxx.com/free-list-of-homes.html

Or if you like doing the searching yourself, check the link below. You can search the listings in three central Indiana MLS systems. When you need more information about any property you see, just email me or call me (553-xxxx) with the MLS number or the complete address and I will send you the details – directly from the MLS.

http://www.xxxxxxxxxx.com/mls

Thanks and have a great day,

~.~.~.~

I use a similar approach with floor calls and walk-ins. I've never gotten a buyer and don't really expect to, either. I have wasted more time in the break room than the few minutes it takes me to spread a little good will.

Betty

Personally, I have not found rentals to be productive. You really need to specialize in this area in order to make it worth your while. At least this is what I have found in my area. Because rentals are rarely listed on our MLS. Most are "open rentals" that are limited to the individual brokerage. Also, most major rental complexes won't work with agents. Thus, the liklihood that you will actually PLACE someone in a rental unit and not have them go off and use someone else is very, very slim. It's labor intensive and you lose over 90% of your prospects.

I should add, that most people looking for rentals in my area can barely afford to live here in the first place. Since a small 1 BR unit can cost well over $2000 a month, no one rents unless they are here temporarily or they simply can't afford to buy. Many of the people looking to rent are looking for Section 8. Most are looking for $1200 a month or less. (Almost IMPOSSIBLE to find). And most are very, very picky - even when though they really are in no position to be picky. Since I only get 1/4 of a months rent and have a 90% probablity of losing the customer to another agency's open listing or one of the large complexes - the average $300 that I MIGHT get is just not worth the work.

Although I am fairly new, I have learned to realize that as important as developing contacts and as important as building your SOI is - there is a point beyond which you can not go without actually LOSING money.