Questions for leasing or tenants’ agents in Los Angeles

Joe HomsBusiness Member

Flipper · Mission Viejo, CA · Member since 2014 · 2k+ posts · 1k+ votes

6mo

@Taylor Kendrick Welcome to BP and contrats on getting your license.

What does a typical day look like for you? I do not focus on tenants because of the low to NO pay from the listing agents.

How long does it usually take to place a tenant from first showing to lease signing? Usually 30-60 days and lots of driving around for very little pay.

What’s the biggest misconception people have about what you do? You are a millionare because you have your Real Estate License.

Which neighborhoods are you seeing the most demand in right now, and why? They are all in demand and rents are still on the rise.

How has the rental market shifted in the past year or two? Way more tenant friendly and a lawsuit waiting to happen.

How competitive is it for commissions? The problem is that large management companies do not offer a commission or very little.

I’ve seen acquaintances work with tenants’ agents only to go around them and sign a lease without their support (ie: finding a property on their own and moving forward with that). Welcome to Real Estate.

What do landlords most commonly get wrong when listing a unit? Fair housing laws.

What’s the most common reason a deal falls through? People just change their minds, even after locking up a locations.

How do you find your clients — do you mostly work with repeat landlords, or are you always finding new ones? I don't work with leases at all.

What separates a great agent in this market from an average one? Experience.

Good Investing...

[email protected]949-625-4533

2 Reply

Taylor Kendrick
OP
New to Real Estate · Member since 2024 · 31 posts · 14 votes
6mo
@Joe Homs many thanks for the insight and sorry for the poor formatting of my OP. I created the post on my phone and it appeared to be formatted correctly. Will clean it up on a browser shortly.
0 Reply

Taylor Kendrick

OP

New to Real Estate · Member since 2024 · 31 posts · 14 votes

6mo

(edit: hopefully this formatting is easier to digest)

I’m wrapping up my RE education and hope to acquire licensure within the next 30-60 days. Figuring out what niche to get into has been difficult, as much of what I see on typical forums (like Reddit) is rife with doomerism and bitterness.

One of my goals right now is to learn about the various niches and sub-niches to determine where I want to begin my journey as an agent. While rental agency is not at the top of my list, I believe it would be in my best interest to dig into it and learn what I can to make that determination fairly. It seems to me that the LA market is a strange one for landlords’ and tenants’ agents, so I’m here to ask some basic questions about the landscape.

What does a typical day look like for you?

∙ How long does it usually take to place a tenant from first showing to lease signing?

∙ What’s the biggest misconception people have about what you do?

∙ Which neighborhoods are you seeing the most demand in right now, and why?

∙ How has the rental market shifted in the past year or two?

∙ How competitive is it for commissions? I’ve seen acquaintances work with tenants’ agents only to go around them and sign a lease without their support (ie: finding a property on their own and moving forward with that).

∙ What do landlords most commonly get wrong when listing a unit?

∙ What’s the most common reason a deal falls through?

∙ How do you find your clients — do you mostly work with repeat landlords, or are you always finding new ones?

∙ What separates a great agent in this market from an average one?

0 Reply

Richard F.

Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes

6mo

The Beauty of being a Property Manager is that there is no such thing as a "typical" day. Every day brings new people, new projects, new properties, and new excuses from Tenants. You need to have solid systems and processes in place to execute at a high level. If you don't have those in place, you treat every experience as a new experience, and you spend too much time analyzing how to act or respond.

Also, as a PM, if you keep your eyes and ears open, you can get first opportunity to list a Client's property for sale, or find one for a good Tenant that wants to be a first time home buyer. Pay close attention to repairs and renos, learn how everything goes together, what sequence is most efficient, what is hiding behind the walls, what "old" looks like, what specific products are more durable or more easily repairable than others, and what is popular or not. Learn about the permitting process and code enforcement/minimum standards; and how Section 8 works. Work smart, and you can still have time to "farm" for listings or show some listings. Learn about the LL/Tenant laws and all the other laws and rules, especially in Cali, that you must follow.

If you are lucky, your Broker will pay for your CE classes or one day seminars on specific topics such as Condo/HOA, or a variety of classes provided by key Vendors. And, you likely will have access to the MLS, so learn how to use it! Many do not take advantage of some of the capabilities offered by some systems, including electronic lock boxes that make it easy to access any property with online scheduling. Local RE Boards typically have their own transaction documents that are very thorough and up to date with current laws. Excellent resources.

If you lock down your systems, and have solid documentation, I can show a property, process their app, review and sign documentation, perform move in inspection with the Tenant, and hand over the keys in under two hours. The more you repeat each process, accuracy and quickness improve. Consistency is key.

2 Reply

Bruce Lynn

Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes

6mo

In some ways I say people can make money when they become the expert, perfect their systems, and have a passion for what they do.

I will also say that is very tricky representing landlords or tenants because there is so little money involved. You also have to say "no" to a lot of people who need help and you would like to help, but can't do that and make money. The lady with six cats and 3 evictions in the past 12 months, the people with no documentable income, the person just out of prision and is a registered sex offender, you can spend so much time trying to find that one landlord who will take them, that you don't make any money doing that. I do a lot of leases, probably more than anyone in my office, but I have a strategy. One is to turn the tenants into buyers a year or two later. You also get insider information on the lease and owner, so when the lease is up for renewal I want to go after that owner for more sales, leases, or expanding their portfolio. That's where the money is---selling, not leasing, so you have to work at turning the leases into sales. Also I start every lease conversation pretty quickly with....look...most realtors are not going to help you lease. I'll do it, but please understand I don't really make any money doing this. In exchange for the assistance, will you promise to give me all referrals you come across in your company and family if they're planning to buy or sell a house? So you help the admin for a $300 commission that you split with your broker, and hope they refer the boss that is going to buy $2-$3million. Or you help the person in HR for $1000 Commission and they refer every employee that walks in the door on a big relocation deal. Otherwise I'll be there are very few agents that survive 100% on lease commissions. Maybe the exception in your market is super high end listings $10-$20-$50,000 a month leases if you are in that world. That's a rare day in my market.

Your money is in listings. Sellable listings. There is the old adeage--"list to last" and when you look around at the most successful agents, that's what they are doing. Most new agents focus on buyers for some reason. Don't do that. Focus on listings. Get after that fast.

1 Reply

Richard F.
Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
6mo
Quote from @Bruce Lynn:

In some ways I say people can make money when they become the expert, perfect their systems, and have a passion for what they do.
I will also say that is very tricky representing landlords or tenants because there is so little money involved. You also have to say "no" to a lot of people who need help and you would like to help, but can't do that and make money. The lady with six cats and 3 evictions in the past 12 months, the people with no documentable income, the person just out of prision and is a registered sex offender, you can spend so much time trying to find that one landlord who will take them, that you don't make any money doing that. I do a lot of leases, probably more than anyone in my office, but I have a strategy. One is to turn the tenants into buyers a year or two later. You also get insider information on the lease and owner, so when the lease is up for renewal I want to go after that owner for more sales, leases, or expanding their portfolio. That's where the money is---selling, not leasing, so you have to work at turning the leases into sales. Also I start every lease conversation pretty quickly with....look...most realtors are not going to help you lease. I'll do it, but please understand I don't really make any money doing this. In exchange for the assistance, will you promise to give me all referrals you come across in your company and family if they're planning to buy or sell a house? So you help the admin for a $300 commission that you split with your broker, and hope they refer the boss that is going to buy $2-$3million. Or you help the person in HR for $1000 Commission and they refer every employee that walks in the door on a big relocation deal. Otherwise I'll be there are very few agents that survive 100% on lease commissions. Maybe the exception in your market is super high end listings $10-$20-$50,000 a month leases if you are in that world. That's a rare day in my market.
Your money is in listings. Sellable listings. There is the old adeage--"list to last" and when you look around at the most successful agents, that's what they are doing. Most new agents focus on buyers for some reason. Don't do that. Focus on listings. Get after that fast.

When "Selling" is your primary focus as an Agent, you have to always be IN "sales mode", always pushing to find or make the next sale. Commissions are good some years,other years Not so much. That really depends on you, your style, your knowldege, and your "circle".
A Residential PM however, is typically a salaried position, or salary plus small leasing commissions, PLUS generous commissions on completed sales and sold listings. And, the Salary IS stable, month in, month out. If your Broker agrees to treat your commissions as wages, you don't have the tax headaches of most commission only agents.
As PM, you have a certain amount of Sales type tasks, inspecting, marketing, showings, and, to a lesser extent "closing the deal". But, you also have new, and, let's say, "interesting" people and projects to deal AND learn with, and yes, being somewhat on-call 24/7/365, but the variety of it all makes it interesting. You are also able to, for the most part, plan and enjoy your Personal time without being in a constant "Sales" mode.
1 Reply

Questions for leasing or tenants’ agents in Los Angeles

Questions for leasing or tenants’ agents in Los Angeles

Most Popular Reply

6 Replies