How do Real Estate Agents Search for Properties?

Question

I am about to put my property up for rent and have a question about using a real estate agent vs. doing it myself.

• When a tenant uses a real estate agent to find a rental house, what does the real estate agent use to search for houses? 
• Does the real estate agent just use MLS?
• If I advertise my property on all the DIY sites (Zillow, Trulia, etc.), will a real estate agent representing a tenant find it?
• Do the homes on those DIY sites get propagated into whatever tool the real estate agents use?

Thanks,

Sal

Lynn McGeein · Answer

I am a real estate agent, and for the ones I manage myself, I do not use MLS.  Putting it on Zillow and screening tenants myself is preferable to dealing with other agents.  If you're in a good location, you'll get good-quality applicants without using an agent.  I stopped using craigslist and yard signs as I've found they produce too many calls asking questions, exceptions like low credit, etc.

Chris Mason · Answer

This is highly regional, you should mention where you are at so people with keyword alerts set up answer your question with regionally correct answers.

Gregory Chadwell · Answer

Really no need for an agent in my opinion.  I use craigslist, Facebook rentals, and Zillow/hotpads for mine.

Marcus Auerbach · Answer

@Salvador Santolucito I am an agent and I manage my own portfolio. Zillow is the way to go in my town, only very high end properties go for rent on MLS here. While it is not difficult and if you want to grow a portfolio it is a skill worth learning, if you have one shot and want to get this right, maybe it's a good thing to hire a professional. Like most things in life, you get a lot better with experience and a good process. Expect a learning curve.

The fact that someone "demanded" lower rent from you concerns me. Rent is not negotiable, it is as advertised. If you start a relationship this way, you will likely be taken to the cleaners one bit at the time.

If I would be in your position, I would look for a property management company. Look for one that has a good reputation and manages homes in your price class. Often you can find them by just looking at "for rent" postings. You can hire them usually just to place a tenant or for full service including ongoing management. The fee will cost you less, than what the applicant tried to negotiate you down!

Luciano A. · Answer

@Salvador Santolucito

I use to use a broker who charged me a flat fee like $199 to list my rentals. I had to still pay the tenant/buyers agent (1/2 of first months rent). I found the MLS brought more quality tenants than Craigslist and yard signs. In the last few years I have built my own process and now use Trulia, Zillow,Hotpad etc. They have really come up and have been successful in renting to quality tenants in short period of time. Try using Zillow to find a prospective tenant. Most tenants/buyers are savvy and know to search other sites, apps to find prospective home. PM me if you want or need recommendation to credit/background checks services, etc so you can do it on your own. Especially if you have time to respond to emails and take calls to schedule. Best to schedule all showings on same day with 15-20min separation. This will help if you have no shows.

Best of luck

Laura Scheel · Answer

@Salvador Santolucito I think this is localized, I’m a realtor and in my area (Milwaukee wi) the only agents that do rentals are MAYBE the towers downtown. It’s too much work for the compensation :) I think Zillow, hotpads, craigslist and a yard sign are your best bet. Also if you have the time I would say do it yourself! Just make sure you set specific criteria and stick to that (even advertise your criteria) - act the same for every prospective tenant... good luck!

Russell Brazil · Answer

Agents wont look on Zillow because there is no offer for compensation listed there.

Salvador Santolucito · Answer

A little bit more on my situation for context...

We moved into a larger house 1 year ago and put our old one up for rent. We used a broker (Renters Warehouse) who took 1 months rent as a fee. It rented within 2 weeks.

The rent was $1845 and the tenants are trying to negotiate us down. They are demanding we go to $1700 a month which is well below the comps for similarly sized homes. We have a 1987 sq ft single story home and they are comparing it to the price per square foot of a 2800 sq ft two story home. When you look at the neighborhood, smaller single story homes average $0.98 per square foot and big two story homes average $0.88 per square foot. They are demanding $0.85 per square foot. We offered to go down a little but it doesn't look like it will work out.

So now we are figuring out how to put the house back up for rent... go through an agent or do it ourselves.

I don't mind showing the property myself. But I suppose if a tenant's agent calls and wants to do the showing then I'd let them do it (at the risk of having to pay them if we lease).

I think all the rental houses on my block are owned by "professional" landlords that outsource everything to property managers and real estate agents. All of their signs are for agents.

Thanks!

Salvador Santolucito · Answer

Another thing I wanted to point out is that this is a house in a "nice" neighborhood that goes for about $1900 a month.  It seems like all the houses around here for lease have real estate agent signs in front of them.

Not sure if that affects how tenants are using agents to search...

Salvador Santolucito · Answer

I am in Austin, TX.  Thanks!

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