Is It Okay to Work with Renters, or Should I Only Focus on Buyers/Sellers?

Let’s talk about renters for a second. You’ve got big dreams of becoming a top-tier real estate agent, closing deals left and right, maybe retiring on a beach in a few years. So when a renter comes knocking, you might be tempted to think, “Nah, I’m going after the big fish—buyers and sellers.” But is that the right move? Should you be ignoring renters? Or is there more to this rental game than meets the eye?

Let’s break it down, because working with renters could be your secret weapon to growing your business—if you play it right.

The Case Against Working with Renters

Alright, here’s the obvious argument that’s been floating around in your head: renters don’t make you the big bucks. You’re chasing commissions, right? And those juicy commission checks are tied to buying and selling homes. Renters, on the other hand, are dealing with smaller transactions, meaning smaller payouts for you.

• Lower Commissions: In many cases, working with renters can feel like putting in the same amount of work for a much smaller check. Depending on your market, your cut from a rental deal might barely cover a nice dinner out, while a sale could buy you a vacation.

• High Effort, Low Reward: Renting is often a numbers game. You might show a renter 10 properties before they commit, and even then, they’re often hesitant or indecisive. That’s a lot of time and energy invested in a transaction that doesn’t lead to a big payday.

If you’re looking purely at short-term ROI, yeah, it might seem like rentals are a waste of time compared to home buying and selling.

The Case FOR Working with Renters

Now, before you write off renters entirely, let’s zoom out a little. There’s more to this story than just immediate paychecks. While renters might not be your ticket to a six-figure commission this month, they can be a long-term play that pays off in ways you might not expect.

Here’s why working with renters could actually be a smart move:

1. Renters Become Buyers

Here’s the thing: today’s renter could be tomorrow’s buyer. A lot of people renting right now are just trying to get a feel for the market or waiting for the right time to buy. By helping them out now, you’re building a relationship with them, and when they’re ready to buy? Guess who they’re going to call? Yep—you.

• First-Time Buyers: Many first-time home buyers start out as renters. If you guide them through the rental process and leave a great impression, they’ll come back to you when they’re ready to make the leap into homeownership.

• Investors: Some renters you work with could be investors who are looking to eventually buy rental properties. If you build rapport, you could be their go-to agent when it’s time for them to start purchasing investment properties.

Think of renters as seeds you’re planting for future business.

2. Renters = Referrals

Renters might not be buying a home right now, but they still have networks—friends, family, coworkers—who might be in the market. If you provide great service to a renter, they’re likely to refer you to others. And in real estate, referrals are gold.

A renter you helped find the perfect apartment might tell their cousin who’s looking to buy, “Hey, you’ve got to talk to my agent—they’re awesome!” One satisfied renter can turn into multiple buyer or seller clients down the line.

3. Practice Makes Perfect

If you’re newer to the real estate game, working with renters is a great way to sharpen your skills without the pressure of a massive transaction. You’ll get practice negotiating, managing paperwork, and navigating deals. Plus, you’ll learn how to deal with clients, handle objections, and gain confidence without the stakes feeling sky-high.

Consider it training ground for when the bigger deals come your way.

4. Expand Your Market Knowledge

Working with renters can help you get to know neighborhoods inside and out. You’ll quickly learn about the rental market—what’s hot, what’s not, and what kind of properties are in demand. This knowledge is invaluable when you start working with buyers and sellers in the same areas. It positions you as the go-to expert on all things real estate, not just the big-ticket sales.

And hey, some of the areas where people rent heavily now could turn into hot buying markets later. By staying on top of rental trends, you’re also staying ahead of future market shifts.

5. Fill the Gaps Between Sales

If you’ve been in real estate long enough, you know it can be a feast-or-famine kind of business. Some months you’re closing deals like crazy, and others, not so much. Working with renters can provide a more consistent flow of income during slower months when buyers and sellers aren’t knocking down your door.

While the payouts might be smaller, it’s better than sitting around waiting for the next big sale to come through.

How to Work With Renters Efficiently

Okay, so maybe you’re starting to see the value in renters, but how do you work with them without it taking over your entire life? Here are a few tips to make working with renters more efficient and worthwhile:

1. Qualify Renters Early: Just like with buyers, you don’t want to waste your time on people who aren’t serious or who have unrealistic expectations. Qualify your renters early by asking key questions like budget, timeline, and must-haves in a property. This way, you’re only showing properties to renters who are ready to move forward.

2. Automate the Process: There’s a lot of legwork involved in showing rentals—scheduling appointments, following up, gathering paperwork, etc. Try to automate as much of the process as possible. Use a CRM to track leads, send automated follow-up emails, and schedule showings. The more streamlined your process, the less time you’ll waste on repetitive tasks.

3. Leverage Your Network: Build relationships with landlords and property managers in your area. When they have vacancies, they’ll send renters your way, making it easier for you to find matches without pounding the pavement for new clients.

4. Educate Renters About Buying: If you’re working with renters who are on the fence about buying, use the opportunity to educate them on the benefits of homeownership. They might not be ready right now, but if you position yourself as a knowledgeable advisor, they’ll turn to you when they’re ready to buy.

5. Don’t Overextend: You don’t need to make working with renters your full-time focus. Use it as a complementary part of your business, and know when to scale back if it’s taking time away from more profitable buyers and sellers.

So, Should You Work with Renters?

The short answer: yes, but with balance.

While working with renters won’t make you rich overnight, it’s a solid long-term strategy to build relationships, gain referrals, and keep the income flowing during slower sales periods. Plus, renters can eventually turn into buyers, and their loyalty to you from the rental experience can translate into big commissions down the road.

Don’t underestimate the power of a well-serviced renter. With the right approach, they can be more than just a one-time deal—they can become a key part of your long-term success.

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