Rental property investments can be your ticket to financial freedom, but let’s be honest, turning a rental unit into a solid source of cash flow involves juggling multiple tasks. You’ve got to be able to handle vacancies, market your property, create and process lease agreements, and conduct tenant screening, all while staying on top of landlord-tenant laws.
Does that sound like too much to handle? Enter the leasing agent! They’re not property managers, but they can make your life as a landlord easier, saving you time and stress. They can help to free you up to focus on other things, and help you to find and screen prospective tenants more efficiently as well, which could cut down on vacancy rates and help to make your property more profitable.
In this article, we’ll look at what a leasing agent handles, the difference between a leasing agent and a property manager, and how to decide which type of professional is best for you. Read on to see tips for finding a leasing agent to help you reach your investment goals.
What Is a Leasing Agent?
A leasing agent is your go-to professional for all things related to finding and keeping the right tenants for your rental property. Think of them as a dedicated property matchmaker, connecting tenants with their dream rental homes. One of their main objectives is to keep your property occupied with responsible tenants, which can help you to maximize your rental’s profitability.
Here are some things a leasing agent can help you with:
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Marketing Your Property
They create eye-catching property listings that spotlight the best features of your rental. In a crowded rental market, they’ll know how to position your property to make it stand out.
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Doing Property Tours
Leasing agents are experts at showcasing a property’s charm, whether it’s through an in-person visit or a virtual tour. They schedule and conduct these showings, answering potential tenants’ questions and highlighting what makes your property unique.
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Screening Tenants
A good leasing agent will meticulously vet applicants, conduct background checks, verify employment, and review rental histories to find reliable tenants who pay on time and respect your property. They do this while adhering to fair housing regulations.
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Handling the Lease Agreement
Lease agents are pros at crafting lease agreements that comply with local rental laws and fair housing requirements. They also know how to explain the terms to your tenants clearly, so there’s less chance of confusion or disputes later on.
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Coordinating the Move-In and Move-Out
From handling the initial walkthrough, responding to inquiries, and documenting the property’s condition to managing the logistics of move-ins and move-outs, leasing agents can help to make the transition smooth for both you and your tenants.
Looking to stage your property? Read the do’s and don’ts of Staging Your Rental Property first!
Benefits of Hiring a Leasing Agent
- Find Reliable Tenants: Good tenants are worth their weight in gold. Leasing agents screen applicants rigorously to find the ones who pay on time, take care of your property, and stick around. That means fewer headaches, more stability, and potentially more cash flow for your investment.
- Maximize Your Rental Income: Leasing agents are wizards at marketing your place, so you’re not losing income on empty properties. They’ll know how to market your property to get it noticed and rented out quickly.
- Tap Into Local Market Insights: Leasing agents know the rental game inside out. They understand what renters are looking for, how much they’re willing to pay, and where your property fits in the local market. They can price your place competitively, fill it fast, and keep it attractive to tenants.
- Help You to Stay on the Right Side of the Law: Navigating rental regulations and fair housing laws can be a headache, especially if you’re new to the landlord scene. Insert a leasing agent! Working with a reputable and experienced leasing agent can help you to ensure that your tenant screening process is in compliance with the law.
- Reduce Stress: Knowing that a professional is managing your property provides invaluable peace of mind. Leasing agents act as a buffer between you and the tenants, dealing with any issues that may arise and ensuring your investment is well cared for. This peace of mind allows you to enjoy the benefits of property ownership without the constant headaches.
What’s the Difference Between a Leasing Agent and a Property Manager?
Leasing agents are specialists who bring tenants to your door, while property managers are the ones who take care of those tenants and your property after the lease is signed. Depending on your needs, you might work with one or both to ensure your investment thrives.
A leasing agent’s primary focus is on tenant acquisition and lease administration. They’re experts in property marketing, tenant screening, and paperwork involved in leasing. Once the lease is signed and the tenant moves in, their job is done. Leasing agents typically earn commissions by successfully securing tenants and signing leases, often equivalent to one month’s rent, but this varies.
While a leasing agent’s role is specific to the leasing process, a property manager takes on broader responsibilities. They manage the ongoing relationship with tenants, handle maintenance and repairs, collect rent, and maintain your property. Property managers are your go-to for your rental unit's day-to-day operations and long-term upkeep.
Property managers charge a monthly management fee based on a percentage of the rental income. They may also charge additional fees for leasing new tenants, handling maintenance, and other ongoing management tasks. Their compensation reflects the scope of their services, encompassing everything from tenant relations to property maintenance.
What Type of Landlords Might Benefit the Most from a Leasing Agent?
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New landlords who need help with tenant acquisition and lease setup
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Small portfolio owners seeking streamlined leasing without ongoing management
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Hands-on landlords who want to be involved in daily operations but would like help with marketing and tenant screening
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Owners of short-term rentals that require quick tenant placement and lease signing
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Out-of-state landlords relying on local expertise for leasing
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Landlords of vacation or seasonal rentals benefiting from specialized marketing and screening
What Type of Landlords Might Benefit The Most from a Property Manager?
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Large portfolio owners needing comprehensive management
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Busy professionals who don’t have the time to manage the property themselves
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Owners of complex properties requiring specialized maintenance or management
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Long-term investors focused on stable rental income and ongoing tenant management
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Remote property owners relying on local managers to oversee the property
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Hands-off investors who seek passive income and prefer to delegate tenant interactions and maintenance tasks
Related: Which is Better? Property Manager vs. Self Management
10 Qualities to Look for In a Leasing Agent
When a landlord is searching for a leasing agent, they’re looking for a partner to manage their property and find the right tenants. Here are some essential qualities to keep in mind when hiring a leasing agent.
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Effective Communication Skills
A leasing agent needs to be clear when talking and an attentive listener. They should be able to explain rental terms clearly to potential tenants and convey any concerns or updates to you.
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Local Market Expertise
Your leasing agent should know the ins and outs of the local rental market. They should be able to accurately price your property based on current trends and understand what tenants are looking for.
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Marketing Savvy
A good leasing agent knows how to make your property shine in listings. From taking great photos to writing descriptions and choosing the proper channels, they should be capable of attracting quality tenants and minimizing vacancies.
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Organizational Skills
Managing multiple listings and potential tenant inquiries requires strong organizational abilities. Your agent should be able to keep track of appointments, paperwork, and deadlines without missing a beat.
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Negotiation Skills
Rent negotiations are a part of the game. Your agent should be adept at negotiating terms that are fair and beneficial to you while still being fair to tenants.
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Screening Expertise
Your leasing agent should have an airtight screening process in place, including background checks and rental history verification.
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Problem-Solving Abilities
Issues can arise at any stage of the leasing process. Your agent should proactively address any problems that may come up with tenants, maintenance, or lease agreements.
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High Ethical Standards
Trustworthiness is non-negotiable. Your leasing agent will represent you and your property, so they must adhere to high ethical standards in all interactions. You’ll also be more at ease when you know you’re dealing with someone you can trust.
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Tech-Savvy
Today, familiarity with property management software, online marketing platforms, and social media is a big plus. New PropTech streamlines processes and helps your property reach more prospects.
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Client References and Track Record
Don’t hesitate to ask for references or examples of properties they’ve successfully leased. A proven track record and satisfied clients are strong indicators of a capable leasing agent.
If you’re going to interview a potential leasing agent, here are some questions to ask that will help you determine if he or she has the right qualities for the job:
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Can you tell me about your experience in leasing properties in this area?
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How do you market properties to attract high-quality tenants?
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What is your tenant screening process like, and how do you take steps to ensure we end up with qualified tenants?
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Can you give an example of a challenging tenant situation you’ve handled and how you resolved it?
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Can you describe your approach to handling tenant disputes or conflicts?
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How do you handle lease renewals and rent increases?
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How do you inform property owners about the leasing process and tenant issues?
Leasing Agent Red Flags
As with all businesses, here are some red flags to watch out for when hiring a leasing agent.
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Vague or evasive answers to your questions can indicate a lack of experience or transparency. A trustworthy agent should be open and forthcoming about their operations and what you can expect from them.
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If the agent is slow to respond to your messages or lacks professionalism in their communication (being rude or dismissive), it may reflect how they will handle tenant interactions and your property management.
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An agent who pressures you to sign a contract quickly without giving you time to evaluate your options might not have your best interests in mind.
Working with rental property professionals incurs some costs, but it can be worth it in the end. The secret is choosing the right person to work with and carefully evaluating their experience, qualifications, and reputation. Ask the right questions and be aware of potential red flags. Remember, the ideal leasing agent or property manager should be able to help you run your rental smoothly and profitably, so take the time to screen them first to ensure you end up with the right professional on your side.
We fill vacancies quickly at Renters Warehouse as part of our comprehensive property management services. Our airtight screening process helps to ensure that qualified applicants gain access to your rental. Learn more about our Resident Placement Services today.
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