4 Reasons to Start a Rental Division

We’ve been wowed by whitepapers from RentJuice before. Well, they’re back at again with an exceptional whitepaper entitled “Everything You Need to Start a Successful Rental Division.” You can download the whitepaper at RentJuice.com.

Without further ado, let’s look at the reasons to start a rental division.

1) The economy calls for it. The disastrous state of the housing market has changed the real estate profession. One of the changes is that rentals are in demand. The RentJuice whitepaper points out that:

• Rental vacancies are at an all-time low.

• A Barron’s report predicts an additional 10 million people to move into rentals in the next five years.

• The increase of renters deferring home purchases and the increase of homeowners switching back to renting is also influencing this shift.

2) Renters grow up to be homebuyers. RentJuice performed a study of renter preferences. What they found was very compelling.

• Renters prefer to work with a broker or agent they’ve worked with before.

• Renters value honesty over any other trait or behavior in a broker or agent.

What does this tell us?

It tells us that real estate professionals have a unique opportunity to build their customer base. By working with young people on rentals, you could be earning their future business, when they “grow up” to be homebuyers.

3) Rentals allow you to diversify your income. Most real estate professionals earn income in the form of large commissions for home sales, sales that can (particularly in this economy) be quite spread apart. Thus the income stream can be rather unpredictable. Income from rentals can be much steadier, especially now, when the vacancy rate of rentals is so low. Think of your rental business as a means to cover your basic overhead and fill your sales funnel for buyer and seller representation in the future.

4) They can help you grow. It’s faster for new real estate professionals to start closing rentals than selling homes. There are fewer hoops for them to jump through. They can gain valuable sales experience (and grow their client base) to help them transition to helping people buy and sell homes.

For a fifth, very important, reason to start a rental division, download the complete whitepaper now. You’ll also find much more – awesome graphics, facts, and tips.

Stay tuned for the second part of our series about the whitepaper: “7 Steps to Starting a Successful Rental Division.”