Savvy real estate agents understand the importance of adaptability. Rather than waiting idly for shifts in the California housing market, consider a temporary change towards the rental market, particularly if you’re in an area with high relocation rates. After all, cultivating relationships with renters can prove invaluable as they transition into home buyers.
Key Takeaways: Getting into the Rental Market as a Real Estate Agent
- Smart real estate agents diversify services during market downturns.
- Entering the rental market as a leasing agent or a rental broker could be a good option for real estate agents living in areas with high relocation rates.
- Prepare to enter the rental market by reviewing California rental-related regulations and laws.
What Is the Role of a Real Estate Agent in the Rental Process?
Concerning rentals, licensed real estate agents typically fulfill one of two roles.
Some serve as leasing agents, matching qualified renters with property owners. Others act as rental brokers, assisting clients in finding suitable rental properties.
Leasing agents typically earn commissions upon successful occupancy, ranging from 50% to 100% of the first month’s rent. Additionally, some property owners may require full-time leasing agents, who may be paid a salary and commission.
Understanding the Rental Market Dynamics
Comprehending rental market dynamics is essential, regardless of your client base. Beyond monitoring home sale trends and emerging markets in California, keeping abreast of other reports becomes imperative when delving into the rental market.
Here are other reports you need to study to become a real estate agent in the California rental market.
- Rental market trends: Stay updated on rental rates, vacancy rates, and supply-demand dynamics.
- Local economy: Job growth, unemployment rates, and wage levels impact rental demand and affordability.
- Demand for different types of properties: Analyze the demand for apartments, single-family homes, condos, and other types of rental units in your area.
In addition to gathering information, you must build relationships with landlords, property managers, and industry professionals to enhance your effectiveness as a real estate agent in the rental market.
Navigating Challenges in the California Rental Market
While your skills from real estate agency work will undoubtedly transfer to the rental sector, revisiting rental-related topics from pre-licensing classes and pursuing continuing education in rental market-related subjects can be beneficial. Here are topics to focus on as you shift toward the California rental market.
Legal and regulatory considerations for rentals
Familiarize yourself with California’s landlord-tenant laws to offer informed advice and ensure compliance with legal requirements.
Tenant screening and selection
Adhere to federal and state fair housing laws while assisting landlords in conducting thorough tenant screenings.
Check out this continuing education course! Fair Housing With Role-Play Activity
Negotiating rental agreements and lease terms
Develop expertise in crafting lease agreements that outline the rental arrangement’s terms and conditions.
Marketing rental properties effectively.
Utilize high-quality listing materials, virtual tours, online platforms, social media, and professional networking to attract tenants.
California renters will remember the work you completed to help them find good, affordable housing. They will turn to you for services when they are ready to buy a home.
Sign up for this continuing education course to better serve your renter clients who become buyer clients: Helping Buyers Narrow in on their Dream Home.
Expanding Services: Building a Rental Property Portfolio
Real estate professionals who diversify their services in rental properties can expand their client base and adapt to market shifts. If you are entering the real estate market as a real estate salesperson, learn the steps to getting your license in California. Or, consider upgrading your license to become a real estate broker in California through Allied Schools, which offers flexible education options and a track record of high exam pass rates for both agents and brokers.
Contact one of Allied School’s academic advisors today to learn more.
