Rent management as a service

Most real estate service practitioners focus their activities on project selling and brokering. And there is good reason to believe why many brokers are broke these days because they have programmed themselves into just selling or brokering a property which is actually the hardest part in the practice. If you really come think of it, only a few survive in real estate selling while only a trickle few have made it big or are professionally well off in this field.

Real estate selling is also the highest in terms of attrition compared to insurance and stock brokering. The reason for this high fallout is that brokers and agents are in competition with one another not to mention that they are also in competition with in-house agents and hundreds of thousands of unlicensed agents that have been allowed by developers to sell their projects. Real estate selling is one of those professions that have yet to be seriously given attention by our government regulators.

But if you're one of those who provide real estate service and have yet to see the fruits of your practice, you should consider offering lease or rental servicing. Unlike project selling in which commissions are given on a staggered basis, commissions in rentals are given after the deal is done. Rentals also have higher commission rates. One month of one year's rent is the minimum commission an agent gets or around 8.5 percent of the gross rental contract. An agent may also negotiate with property owners for a yearly commission for longer tenancies.

But what makes the whole business really exciting is that an agent or the broker can offer ancillary services to renters and property owners by offering rent management services. I am amazed by what Rent.ph (www.rent.ph)  has done in this part of real estate practice by providing a framework in rental service including marketing and renter-owner collaboration using cloud applications.

The idea is so novel that one can actually improve his or her income potential by adopting their business model. And I have seen that business model work with my encounters of their agents who earn an average of 40,000 to 80,000 a month in rental commissions alone and some 5,000 to 10,000 in extra and steady income a month for offering rent management services. Put it simply, a property professional who is signed up to the program gets his earnings from rental commissions and property management services.

This is an opportunity that service providers should emulate in their real estate practice. There is a huge market in rentals. According to Rent.ph president, Anthony Leuterio, "The demand is big but the inventories are short. Our website is there to help brokers and salespersons to market their listings in a short time." More than just a rental search portal, Rent.ph has included a Rent Manager program that maximizes their earning capacity by becoming a rent manager. "The program enables brokers and salespersons to become rent management professionals who will be trained and certified by Rent.ph so they can offer other property management-related services. We have a growing demand for such services and we are inviting practitioners to take advantage of this new and growing market in real estate."

In a nutshell, rent management includes tenancy marketing, maintenance and upkeep of property, homestaging or property facelifting, rent appraisal and other in-premise services.

Rent management can also help boost your selling campaign by telling prospects that you are into the business of tenant search. The strategy is so effective that sales of Leuterio on pre-sold projects have improved tremendously using rental as a closing pitch . "Many buyers are investors. Like any investor, foremost in their mind is the return of their investment. We want to assure our buyer-investors, whether investors of houses or condos, that we will be always there to help them find tenants once their property is ready for turnover. Our clients are more confident of buying their condos or houses from us because they know that someone will be there to market their properties to renters." says, Leuterio.

To get to know how you can leverage rent management services into your services as a broker or salesperson, shoot me an email.

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