How a Real Estate Agent Can Help You Find Your First Tenant
Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.
One of the most time-consuming parts of being a landlord is finding and vetting potential tenants. Finding the right tenant involves more than just hanging a “For Rent” sign in the window — you need to ensure you are marketing to the right demographic to find the ideal renters.
Fortunately, working with a commercial real estate agent can help you find ideal candidates to fill vacancies. Let's talk about some of the ways that a commercial real estate agent can help you find your first tenant.
#1 – They'll Handle Marketing for You
Despite what many think, you can't just create a random listing and expect to get any hits. Rental properties need to be marketed to the right audience, and creating a good ad requires skill, experience, and industry knowledge.
Realtors not only know how to describe and stage properties for effective marketing materials but also have access to the best listing services. They can create digital ads or post physical materials in their office that receive substantial foot traffic. They can also directly contact interested parties in their professional networks.
Overall, an agent's marketing activity helps them find willing tenants much faster than if you had tried to do it on your own. You can focus on managing your assets while your agent finds renters.
#2 – They'll Help You Show Your Properties
Whether you are leasing an apartment, house, or commercial office space, you'll eventually need to show the property to prospective tenants. Viewings are a crucial aspect of finding tenants as an excellent first impression can make the difference between losing a lead or nailing down a contract.
Agents have extensive experience with staging and showing properties. They can ensure that your building is in the best possible shape to show off its most important attributes. Moreover, an agent can meet tenants at the property and give them walk-through tours.
#3 – They'll Vet Tenant Applications
When finding a tenant, you might have to comb through dozens or potentially hundreds of applications. Odds are, a decent chunk of applications will come from non-qualified tenants. Agents can go through tenant applications to separate the wheat from the chaff.
For example, agents can go about verifying the applicant's credit score, income, criminal background, and previous rental history. Agents have a lot of experience finding tenants, and they are good at excluding applications from low-quality tenants.
Additionally, the agent can be a general point of contact between you and potential tenants. They can call or message them if they need more background information or have questions about their applications.
#4 – They Understand Market Value
Pricing your rental is a matter of balancing average market rates in your geographic location with the amenities and quality of the property. If you price your property too low or too high, you may not attract the type of tenants you want.
Agents know how to research property markets and nearby comparables to set the most effective rental price. Agents will help you get the best deal for your property but not set rents so high that it is on the market for months.
#5 – They Can Negotiate Leases
Most residential and commercial real estate agents have a lease “template” that they modify depending on the specifics of the transaction. The lease template contains the basics of the lease agreement, such as rental prices, security deposits, tenant obligations, and property use restrictions.
If the prospective tenant is using an agent, your agent can negotiate with them to create the ideal lease for both parties. Qualified agents have experience negotiating leases and understand how to best communicate with people and convince them of favorable lease terms.
Lastly, an agent can go over any final leases to identify problems, ambiguities, or unenforceable sections. Agents are incredibly useful for creating leases, especially if you have never rented to a tenant before.
#6 – They Can Leverage Their Professional Networks
Traditional methods of marketing, such as digital ads, listing websites, and social media, might not be enough to find a good tenant. In that case, agents can rely on direct connections in the professional network to find good tenants.
For example, your agent might know a tenant from a previous transaction that might be a perfect fit for your property. Alternatively, agents know other agents and brokers, both of which can connect them with potential renters.
The good thing about hiring an experienced agent is they have extensive professional networks they can leverage to do their jobs. Very often, an agent with the right professional connections can find tenants and close deals faster than if you used traditional methods.
#7 – They Can Leverage Social Media
Social media has been one of the greatest inventions for marketing, commercial real estate included. Social media websites are one of the best ways to connect with potential tenants, and most of them are 100% free to create a basic account.
For example, your agent can create a listing on Facebook Marketplace for free. Other popular social media sites real estate agents use include Instagram and Twitter. The real benefit of social media marketing is it can get thousands of eyes on your property listing in a short period.
#8 – They Can Provide Peace of Mind Around Legal Compliance
Landlords have several legal responsibilities and must follow the appropriate regulations when searching for tenants. Tenant law is fairly strict about what it considers discrimination, and the last thing you want is a legal battle because you ran afoul of housing law.
For example, landlords cannot refuse tenants based on several protected characteristics, including race, national origin, gender, sexual orientation, religion, disability, or age. Different states might also have additional restrictions and rules tenants must follow.
For example, an agent can tell you if a particular question on the application could count as discrimination or whether your property meets minimum required dwelling standards. Hiring a competent agent can potentially save you from legal fines and prevent frustrating and time-consuming litigation.
Find & Connect With Commercial Agents & Brokers Near You for Free on MyEListing.com
MyEListing.com maintains one of the largest databases of commercial agents & brokers in the country. The best part? It's 100% free. Learn more about how you can find a commercial agent or broker near you.
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