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Most real estate brokers don’t offer leasing agent training classes or even encourage their agents to do leases, but it can be an excellent way to get started in the real estate business – and the best thing of all is that as a leasing agent you won’t have to wait months for a paycheck, since leases are usually much faster than closings.
There’s another unmentioned perk about becoming a leasing agent – most people who lease may eventually decide to buy later down the road. And if you learn how to stay in touch with these people, it could become an easy future sale or referral for you.
Below are some of things to consider about becoming a leasing agent:
Commercial or Residential Real Estate Leasing?
The first thing to decide is if you want to be involved with commercial or residential leases. Commercial leases deal primarily with office space, warehouses, retail store fronts or even possibly land leases. You will need to network with both large and small business owners as well as property owners of commercial property in your area. Residential leases primarily focus on leasing apartments, condos, duplexes, or even single family homes. If you specialize in residential leases, you will most likely deal with individuals or families looking for a place to live, though you can also work for an apartment complex or development and manage the marketing to find tenants.
Learn the Requirements in Your State
The second step is to understand what the laws in your state are for being a leasing agent. Each state has its own laws and requirements for becoming a leasing agent, so be sure to check with your real estate commission to find out what circumstances require you to be licensed.
Understand Tenant/Leasing Laws in Your State
Every state also has different laws concerning the rights and responsibilities of tenants and landlords. Make sure you understand the basics of contract law, the terms provided in the leasing contract, and be able to explain these laws to prospective tenants. Staying up to date on other laws concerning leasing in your state will help you do your job better and also avoid any potential problems. Check with local real estate schools and your broker to see if there is any additional lease agent training available that you can sign up for.
Decide How You Will Get Clients
You can decide whether to represent landlords, prospective renters, or a combination of both. Each will require different marketing strategies. If you decide to list leases for example, you will need to find property owners who are looking for someone to help them with the burden of finding tenants. You can often make connections with people by scouring classified ads and networking with property managers and development companies. When you are listing a lease, you will also need to market that lease much as you would a traditional listing – giving it exposure both online and off. Josh Whitford has a good article on apartment marketing you may also want to check out.
If you’ve decided you’d rather help someone find the perfect apartment, you’ll need to take a slightly different approach. Taking floor time, networking with relocation departments of companies, and finding people with adult kids or extended family in their basement who have stayed past their welcome might all be good places to start.
Set Up Payment Terms Upfront
Many agents are often confused about what fees they should charge for leasing an apartment or commercial space. This is often based on local customs, so obviously there is no “one size fits all” fee, but it should be pretty easy to find the going rates for commission paid to leasing agents in your area. You will also want to make sure that terms also include WHEN you will be paid so there is no confusion over that. Having these things in writing when leasing an apartment or working with prospective tenants will make your life much easier. If you are working for a real estate broker, you will also want to ask what percentage of the total commission they will keep – in most cases it is often the same percentage used as for sales.
Do you have any tips for agents interested in becoming a leasing agent in our leasing agent training 101 post? Share them in the comments below!
2 Comments
With so many people having a hard time getting credit, leases are looking more attractive. In certain markets, being a leasing agent is far more profitable than being a regular sales agent.
It is true that not many brokers give any training to leasing agents in the residential brokerage. If agents are looking at getting into this I would recommend going with a broker that specializes in leasing commercial space that way there’s training.