Commentary by Mark Mathis
As a real estate agent, you know a steady stream of leads is the only way to keep your business moving; however, many agents shy away from rental leads because they believe they aren’t worth the time or investment. The only tool that allows you to timestamp the lifecycle of a customer, rental leads can be a great way to increase your client list. The best part about rental leads is that most agents aren’t focusing on them, so it opens a new, untapped market. If you put these tips to the test and find your business thriving, you may have found your niche.
Why should I work with rental leads?
While many groups such as millennials are moving toward homeownership, some can only afford to rent. This means there’s a large portion of potential homeowners waiting. If you can work with them now, you’ll know exactly when their lease is set to expire. This puts you in prime position to contact them about buying a home as their rental period ends.
Where do I begin?
Before you start, set a price point (e.g., $2,000/month). This means you’ll only work with clients who are looking for rentals priced at $2,000 and above. After they’ve found their dream property and moved in, send something small to congratulate them. This creates a warm relationship, giving you something to build on in the future.
How can I convert renters to buyers?
After your clients have moved into their rental, add them to an email campaign and invite them to follow you on social media. Share periodic tips related to saving for a down payment and how to prepare to buy a home. After they’ve been renting for nine months, contact them directly to ask if they’re interested in buying as their lease comes to an end. Since you helped them before, you know exactly what they’re paying, where they live, and what they wanted in a property. This gives you a great advantage in helping them look for a home. If they seem a little hesitant, send them some properties that show how much they could be saving by owning instead of renting.
Keep in mind that if someone inquires about renting, it doesn’t disqualify them from buying. Many renters have great credit scores and savings, but don’t know they can afford a home. You could show them that it’s less expensive to own than rent. If it turns out a rental client doesn’t want to buy, you can always refer them to another agent.
What do I do with the leads that don’t meet my price point?
If your price point is $2,000 and you have a number of leads below this price range, farm them out to other agents. Offer to sell these leads for a nominal fee ($5 each) to rental-specific agents. Over time, they’ll pay for themselves. If you’d rather keep them in-house, these leads could be great for new agents who are still building their experience.
Ready to start building your client database? Homes.com can connect you with quality rental leads in your area. Don’t let any more rental leads slip away from you; start connecting with them today.