Making Extra Income with Rentalsâ€¨
By Erin Ruane, Vice President of Sales for Homes.com
Every real estate pro knows the importance of getting new listings and finding new clients; it’s the lifeblood of the industry. However, for some savvy agents looking to make a little more income, getting involved in rental properties has been the secret to success.
By listing and selling residential rental property, those in the real estate game can open themselves up to a whole new clientele and make connections that can benefit them for years to come.
We know that Millennials are a big key to success in the 2015 real estate market but while many Millennials are moving out of their parents’ homes, not all of them are buying houses. Instead, many are choosing to rent, which is why the multi-housing market is as strong and healthy as it’s ever been. But there’s no reason why these renters wouldn’t be interested in a residential rental, which gives them a taste of single-family living.
Freddie Mac reports that the single-family rental market has expanded 16 percent (about 3 million units) since 2007 to around 11 million single-family homes across the country now occupied by renters.
Income Opportunity for Agents
Studies reveal that half of all renters, including approximately 60 percent of singleâ€?family renters, anticipate becoming homeowners in the next five years. Premier Property Management Group conducted a study last year that showed single-family home tenants are 25 percent more likely to remain in their current home for five years or longer, compared to just 22 percent of apartment dwellers. Therefore, working with single-family rentals definitely has its potential for agents.
Real estate pros need to capitalize on all that comes with the rental industry and foster new tools, partners and best practices. This means paying attention to new online resources, finding ways to connect with renters, and advertising your properties in the right places.
While real estate professionals would obviously prefer to sell a home, the long-term benefits of adding rental properties to your services can be huge. If someone was happy with your help in finding them a property to rent, they will think of you and call you when it’s time to buy a home of their own. The question then becomes, how can you attract more renters?
One of the ways real estate pros can start making renters a steady part of their cash flow is through advertising. Homes.com has seen a nearly 20 percent increase in consumers searching for single family homes to rent with 40 percent of this traffic coming from mobile devices. The key to reaching these renters is local targeting while they are actively searching for a place to live. Homes.com's Local Mobile Ads allows you to prominently display yourself and your business at the top of the search results when renters are actively searching in your local market.
Don’t dismiss the idea of rentals so quickly. It could be just the thing that helps you reach your 2015 sales goals. For more information on how you can capitalize on rental properties please visit connect.homes.com.