This Khloe-Lamar Deal Brings Up the Rental Rep Issue: Do Real Estate Agents Like to Handle Rental Transactions?
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Update: I’ve just learned from a Hollywood producer that the reason Khloe & Company took their time interviewing and selecting Dallas real estate agents was that they wanted the right personality for the show! That’s right, everything they do is TV drama and their agent had to “present well when they were taping him”. That would be Rogers Healy. They already have pieces and parts for two episodes in the can with Rogers as their agent. Hooray for Hollywood…
This article in the Dallas Business Journal (subscription recquired) is about Realtors fighting for the Kardashian-Odom business. We have all these different Realtors, as I have told you, falling over each other to show them homes. We have media jumping the gun on the agent and, maybe, the condo. As of 11:00 pm last night Rogers Healy told me no lease signed yet. Khloe’s fawning over a cute Gingerbread house her mom sent over to the Crescent. I was talking with Jane McGarry tonight before our real estate segment about how most agents usually shun leases. Why? Because they don’t produce the commissions sales do. The commission on a lease is usually the first month’s rent. So if, for example, Allie Beth Allman leased Mack Hick’s unit to Khloe and Lamar, she’d probably pocket $7500 (less broker fees). Sell a $2 million listing, net 3% of that or $60,000. Which would you rather take home? This is why California Realtors, for example, almost never handle leases. Word last couple years was that more agents are taking on leases to stay alive, what with the market so tight and so many more people leasing. Now we all know that handling a celebrity lease is well worth the effort regardless of the commission, but this got me to thinking: are you Realtors taking on more leases? Do you like them? Is it worth it? Do you handle your own leases or refer them out to lease specialists. Inquiring Minds want to know!
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Hey it puts food on the table !!
Hey it puts food on the table !!
I personally dont mind leases. It provides some revenue, and if handled properly the Agent has a good timeline of when the client is ready to make a move…hopefully into home Ownership!
I personally dont mind leases. It provides some revenue, and if handled properly the Agent has a good timeline of when the client is ready to make a move…hopefully into home Ownership!
Leases can be worth it if the price is right and they don't take too much gasoline…at the end of the day every dollar ads up.
Leases can be worth it if the price is right and they don't take too much gasoline…at the end of the day every dollar ads up.
Leases are fine until you show a few of them and find out the one your client has chosen only has a 25% commission…..but I eventually got smart and found a solution for that.
Leases are fine until you show a few of them and find out the one your client has chosen only has a 25% commission…..but I eventually got smart and found a solution for that.
@Ken: Want to do a guest post on that?
@Ken: Want to do a guest post on that?
I do not mind handling leases. I think to be successful in any market you must adjust to the market -it does not adjust to you. Generally the transaction is faster and there is still a great opportunity to meet fascinating people, make new clientele, create referral opportunities and generate income. If you have great photography, good Internet marketing and offer the cooperating broker a full 50% it should be a fast transaction for everyone involved. I do not like to travel too far for leases because of the ROI and refer things out of the area to another Realtor– very very rarely with a referral fee. I also invest In apartment software and will usually accompany clients to the viewings but again limit the geographic area. Although I would show a client a rental offering less than 50% commission I would not personally market a home for less. It is a true disservice to the client for a few extra dollars in your pocket.
I do not mind handling leases. I think to be successful in any market you must adjust to the market -it does not adjust to you. Generally the transaction is faster and there is still a great opportunity to meet fascinating people, make new clientele, create referral opportunities and generate income. If you have great photography, good Internet marketing and offer the cooperating broker a full 50% it should be a fast transaction for everyone involved. I do not like to travel too far for leases because of the ROI and refer things out of the area to another Realtor– very very rarely with a referral fee. I also invest In apartment software and will usually accompany clients to the viewings but again limit the geographic area. Although I would show a client a rental offering less than 50% commission I would not personally market a home for less. It is a true disservice to the client for a few extra dollars in your pocket.
I do leases; it is a great way to build clientele and a big part of most markets especially the Las Vegas market. We have been often referred to as “Ground Zero” for the housing down turn leading most states in foreclosures. Leases are a quicker transaction but still a way to show your great service & knowledge. The only thing that is bad with doing leases in Vegas is unlike the east coast. As I own a few properties back east; the real estate agent usually gets the 1st months’ rent of the property for commission compensation. Here in Vegas it is a very minimum flat fee no matter the size or cost of the property, so you have to very efficient with your time and resources’. I deal with more High-rise communities on and off the Las Vegas strip because their flat fee is a lot higher!! http://www.twitter.com/ejcutliff
I do leases; it is a great way to build clientele and a big part of most markets especially the Las Vegas market. We have been often referred to as “Ground Zero” for the housing down turn leading most states in foreclosures. Leases are a quicker transaction but still a way to show your great service & knowledge. The only thing that is bad with doing leases in Vegas is unlike the east coast. As I own a few properties back east; the real estate agent usually gets the 1st months’ rent of the property for commission compensation. Here in Vegas it is a very minimum flat fee no matter the size or cost of the property, so you have to very efficient with your time and resources’. I deal with more High-rise communities on and off the Las Vegas strip because their flat fee is a lot higher!! http://www.twitter.com/ejcutliff