Why (Most) Twin Cities Realtors Don’t Do Rentals

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Cooperating Broker Compensation Buyer Broker Comp: $ 100 Sub-Agent Comp: 0 % Facilitator Comp: 0 % Variable Rate: N List Type:  Exclusive Right

In Foreclosure?: No Lender Owned?: No Owner is an Agent?: No

–Excerpt, MLS Rental Listing

I know a (very) few Twin Cities agents who handle rentals — but I’m not one of them.

Why?

You can’t make a living at it.

Unlike New York or San Francisco, where monthly rents can easily exceed $5,000 or even $10,000(!), most Twin Cities homes (or at least the ones on MLS) seem to rent for $1,500 to $2,000.

Given that the convention is to pay the agent representing the renter from half to a full month’s rent, that means a maximum paycheck of $750 to $1,000 (in Realtors’ parlance, called “the payout commission”).

And that’s before splitting with their broker, accounting for gas, insurance, etc.

Agent “To Do” List

So, what do agents do for that?

Show their client perhaps 8-10 properties; review the rental lease and any addenda (pets, smoking, etc.); advise about renter’s insurance; and — inevitably — be in the loop if there are any post-move-in problems (like needed repairs, security deposit issues, etc.).

Thanks, but no thanks.

Of course, the one-half to a full month’s rent as commission is only the convention; many would-be landlords offer (much) less.

Like the owner of the 3 BR/2 Bath St. Louis Park home above, which is renting for $2,195 a month and is offering the renter’s agent . . .  $100.

P.S.:  I know that some rental agents figure they’ll have a loyal Buyer once the lease expires, typically in a year.  But, there’s certainly no guaranty of that — and I don’t know any creditors who are that patient.