Every morning I check the Multiple listing service (MLS) for the market update. This is a list of new homes on the market that are either new to the market, re listed, reduced, increased, under contract, sold or expired. Today one third of the new listings were bank owned. I can't check to see how many of the others are a stress sale but I would guess another third.
In the past Realtors in the Cleveland market didn't get real involved in the rental market. I can remember saying it just doesn't pay enough. Today I am involved in leasing properties actively! I can make the same money leasing a property that I would make selling a low end bank owned home. The difference is when showing the properties the rentals usually have the snow shoveled and the heat on. This has become a luxury when showing houses! The only good thing about not having the heat on is that the bugs go dormant.
Things have shifted and to stay afloat you have to shift with it. When I list a rental property I put it in the MLS and market it online almost like a property for sale. What I have found to be interesting is the agents that show my rental listings. So often when talking with other agents they talk a big game. Hardly will another agent admit that the market is tough and they are struggling to make the money they once did. When a top producer from a competitive company shows one of my rentals and looks to co broke a commission of say $650.00 I know they are struggling. Game face is gone no more bullshit!
Breaking that down they get half of that and then they split that half with their broker. So what he or she is looking at making is $175.00. Some companies will nickel and dime their agents for other fees like a processing fee making that $175.00 even less. Not so glamorous now is it?
Recently the biggest competitive company out there with agents than any other company (not naming names) has pulled a fast one. When they bring a potential tenant they have added language to their paperwork which is called Agreement to enter into a Lease. Way at the bottom of the paperwork they add language which states that if the potential tenant purchases the property within 2 years the owner will pay the agency a full commission. The problem here is it cuts out the listing broker!
I kept thinking why would Joe big bucks from XYZ company show my rental to making a whooping $175.00? It turns out that because he is looking to skunk me and my client out of our business relationship!
Do you really want to do business with a company that does business like that? Just like the casinos they didn't get that big by being a nice guy like me.
I'll stay small, make a good living and sleep well at night. When and if I make it to the Golden Gate I will look whomever greets me straight in the eye knowing I have lived and worked honorably.