A Real Estate Agent Representing Tenants?

Question

On podcast 316, Graham Stephan said that one could be a real estate agent that represents tenants. What does that mean? I've never heard of that before. Is it region specific or something? Or for the upper incomes of NYC? Can anyone explain how real estate agents can represent tenants?

Shaina Filak · Answer

Julie, think of it like buying and selling a house. Sellers agent lists the house and someone looking to buy finds an agent to help them. But in this case, replace "buy" with "rent"

Seller/Landlord has a listing agent.

Buyer/Tenant may have an agent as well to help them find some place to buy/rent.

Not sure if I helped with my explanation at all!!

Basit Siddiqi · Answer

@Julie MarquezIn NYC, a large inventory of rental apartments are listed through a real estate agent.A person looking to move has more options of places to rent if he uses a real estate agent. The guest was mentioning to service these individuals and provide them a good service. The agent will get a commission by servicing him/her. The individual may then go ahead and use the same real estate agent when he decides to buy a house down the road.

Tchaka Owen · Answer

@Julie Marquez - If you list a property for rent on the MLS, someone represents the tenant looking to lease the place (note: this can vary by state law). So if an agent choses to specialize in rentals, s/he'd be representing tenants.

Julie Marquez · Answer

@Andy Webb That's helpful, but I can see why it's not a huge market - it doesn't really pay compared to the sales. I've never seen that in practice in my area

Julie Marquez · Answer

@Jason Lee Interesting, I had no idea that this setup existing (west coast resident here)

Julie Marquez · Answer

@Tchaka Owen So basically a property manager for the rental owner?

Andy Webb · Answer

Just like an agent can represent my interests as a landlord if I ask them to manage the lease-up of my properties, an agent can represent applicants on the other side of the table.  There is typically a commission involved, paid by the listing side, but usually it is peanuts.

I list my own properties for lease now, but occasionally will help folks locally find a unit to lease outside of my inventory.  Helped a family into a house here in Carrollton just recently.  The benefit to them: not only do they have an agent steering them through the application process and vetting the lease for them, in this case they have an experienced landlord to help make sure there is nothing squirrelly in their lease, etc.

For me it represents another occasional income stream.

Andy

Jason Lee · Answer

In NY an RE agent can represent the landlord, the tenant, or both through dual agency. It works similarly to the way a buyer's agent works. Agent shows tenant properties, helps negotiate the lease, and will either collect commission from the buyer or from the landlord. If landlord pays the commission then the agent would split it with the landlord's agent if there is one (there might not be if it's an open listing).

A Real Estate Agent Representing Tenants?

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