Worth it to use realtor to list for lease?

Question

Hello all,

I need some help!

I live on the west coast with a rental property in Florida. Last year, we listed and leased our property on our own but at the time we had family in town there to show the property for us with a rental open house for one weekend.

The tenant will be leaving and we are considering using a local realtor this time. But I’m having trouble swallowing the cost & pulling the trigger on it lol

The commission is a full month’s rent which is 3100~3200. And if for any reason the property doesn’t lease as quickly as last time, that’s more PITI payment out of pocket which we have but is a good chunk of change.

If we were to list ourselves, we would probably spend about 1500 but I fully acknowledge the trade offs and opp cost of missing work, time saved dealing with inquiries and vetting, flying there, showing the property, the preoccupation and stress, and such while juggling full time job with time zone difference, etc.

Any thoughts on this? Is it true that most people with good credit and income work with realtors who would likely take them to other MLS-listed properties?

Vivian K. · Answer

@Adam Bartomeo

That…. is a great point in regards to the tenant pool. Makes sense.

1/2 months sounds reasonable to me. Is that only if the investor also contracts with you for PM.

We are in the Fort Lauderdale/Pompano Beach market and not looking for that agent to PM also.

Thank you!

Vivian K. · Answer

@Mike Velez Ah, yes I have heard of that. Good to know. unfortunately we did not purchase with this agent. I wish we had her before as in hindsight the previous agent we used had so many red flags!

Adam Bartomeo · Answer

@Vivian K.Yes. Otherwise we charge a full months rent.

Mike Velez · Answer

For my investor purchase clients I offer free leasing services as perk to using me on the purchase. It's just one less thing they'll need to worry about once the property's tenant ready.

Mike

Adam Bartomeo · Answer

We normally charge 1/2 months rent and 10% to manage the property, so, its better to just have a company like ours manage the property and you can sit back and relax. Depending on where you are in SWFL the market is shifting drastically. You are lucky to have a "pool" of tenants in today's rental market. Lastly, your pool is always going to be scraping by and they will barely meet the min requirements. They are renting because of this especially at your price range. Someone that can afford that type of rent can easily afford to by a house, so, you are going to get the people that have issues... low credit scores, high DTI, no downpayment, etc.

Vivian K. · Answer

@Vivian K.

Also hoping for a better pool of possible applicants. Last year there were many applicants but most, even holistically, did not meet minimum requirements.

Worth it to use realtor to list for lease?

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