I am a newbie, just got my license one week ago. :)

I have heard for few people that know Realtors that are making good money on rentals. I am thinking doing them, I know that the commission is low, but you get paid those commissions faster than on buy/sale closings. At least for me as a new in this industry, will give me experience to work with clients and get more confidence and they can give me referrals. Rental clients are not that demanding like buyers and sellers, that they want Realtors with lot of experience. But have no idea how to start working with rentals, or getting leads for rentals.

Any good advice for this would be highly appreciated! Want to start working with rentals ASAP! :)

A lot of work for a little commission. I have heard just the opposite of rental clients. I would never do it but if the rental market is lucrative in your area then go for it. Around here there's no way I'd do it

Really? what of your rental clients have said about it?

But why its a lot of work? showing rental properties until they get what they want? or you mean the paperwork? because in rental communities or developments, you actually don't have to do any paperwork, they do it all. You only bring the tenant and you get your commission when the tenant moves in. And that generally doesn't take more than a month.

When I was looking a place for rent, I found on CL the one I like, called the Realtor, she showed up at the property, the manager showed me the property and the paperwork, the Realtor was just sitting at the clubhouse. She didn't do anything else, she was just the person who brought me to the landlord/lessor, I really don't think that's a hard work! Maybe I would have to fill out sometimes leasing contracts for the tenant, and showing the tenant the properties she/he might choose to rent from the pictures and listing information.

So I'm very confused, I don't know yet what is exactly the job of a Realtor on rentals. That's what I have tried to find out but I haven't found it yet... :(

I like the idea.

I have a few myself and am considering more. I am basing my interest on an agent in my office who has about 45 or 50.

Positives.
Great cash flow.
Work load is minimized by great system planning
Each rental is a mini farm. You have a tenant who is a possible buyer. Each Landord is a buyer, seller, or both--over and over again.
You benefit from having a good roledex of handymen.

Pressure is less. People are not making the deal of a lifetime, so there is not as much emotion. There is a lower key attitude.

Their is nothing wrong with rentals. I've been doing sales for almost 10 years now and just started doing a few rentals last month when things started to get real slow. At the end of the month I will have made 3K in 45 days or so in off season on rentals. It helps out with the slow sales and BPOs. I should have added rentals to my arsenal a few years ago instead of giving them away to other agents.

Rentals in my area are very different than in other areas I suppose.

We have no rentals on the MLS, not allowed...only resales. There are no "rental communities" or "apartment complexes" in my area; this is a very rural area. Vacation rentals are different, but I'm not interested in pursuing them either.

Rentals in more urban settings are different.

Oh no, in my area is everywhere! lots of rental communities, even condos, townhomes, houses that are for rent.

With a lot of foreclosures happening right now and that will happen in the next 2 years, where are this people going to live? they are going to rent of course!

So I really see it as a good start for me, I have no experience, getting listings with zero experience would be complicated now for me, getting buyers would be better but I have to wait longer to get paid, on rentals people are not that demanding if I have experience or not, just the basic knowledge on leasing contracts and a friendly personality. It's a good way to get good referrals!

Let me clarify a little. I do not work tenants looking for rentals. Generally, when they call I refer them to some sources, assuming I don't have one available for them. I was talking about property management.

Generally, working tenants does offer a coop fee. I have seen one (and only one) as high as $500. I would perform for that. Mostly though, the fees are $50 to $125. I got stiffed on a $50 coop fee once, totally a word of mouth referral. Boinkies.

Here in south florida, realtors get 50% of the rent. Let's say, the future tenant is looking an apartment for $1400 monthly rent. I will get $700. And of course, have to pay my broker his cut, so I will get $500. I don't think that's bad. Then imagine how many tenants you can refer in a month and multiply. ;)

Like I said - in a market where there are great opportunities, go for it. In my market, it's more headache than its worth.

Why, it could be in the Bazillions !

Just too bad you can't trust the Honor System, and most of these Parties will conveniently forget who made the connection.

I meant, imagine how many tenants you can refer to these rental developments or landlords, and therefore, the money you can make in short time. Of course, not expecting to be a millionaire with this, but its something that can help you pay your bills.

I think its a good way to get referrals in the future from those tenants I help to find their rental home. If they liked me, they would refer me people that they know want to sell or buy.

This depends on what you are talking about.

Property management is highly sue happy.If you are simply referring a tenant to a complex then you don't represent them you are simply handing them off for a fee.

If you are negotiating the lease for them then you are representing them.

Time is money so rentals would be about how many you had to show before getting a commitment.

Why wouldn't a tenant simply look on the internet and go directly to the building?? Usually the building is a offering a special and if they don't have to pay you money they can give more of an incentive to the tenant.

Every area is different but here I avoid it like the plague.

Good Luck

I regret to acknowledge that few Human Beans have a retention span much longer than that of a Day Fly.

You will be lucky if they remember your name for more than 5 Minutes.

Your experience may prove different; but you can't count on this Species.

Good Luck to you in trying it anyway.

Vermont, I will try for sure! :)

In my case, I still remember the agent who helped me to find my present place. That was more than 2 years ago. If I could remember, why other people can't? If you get referrals from buyers or sellers you have worked with and they liked you, why can't you get referrals from renters too? and I think, follow-up is important, if you send that person newsletters, postcards on holidays, and better, a birthday card on his/her birthday, that person not only will remember you, will refer you.

So let me ask you, what do you think are the best ways to get referrals?