My listing agent can't rent my unit! What do I do?!

Chicago, Illinois
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My listing agent can't rent my unit! What do I do?!

Sean McKee
Rental Property Investor · Chicago, IL · Member since 2017 · 266 posts · 188 votes

Hello BP!

I'm actually not that stuck with my broker and have recently parted ways. However this experience has definitely got me thinking about how to avoid this situation in the future. I've been overseas for sometime now and have become "out of country homeowner". Happily this is temporary and I return back to the US in a few weeks. This experience has definitely shown me how "passive" my investments are and some serious gaps in my systems(definitely a post for a different day). Long story short, I had a tenant move out suddenly and left me with an unexpected vacancy. Normally I would just show this myself, but being on the other side of the world makes this a little bit harder. My normal broker was not available, so I scrambled to get a new one. Naturally I went with the first one I found and since I was preoccupied with other matters there was not an in-depth conversation. 

Fast forward a few weeks, I find out the broker is not really that motivated and is showing it maybe an hour a week at the worst times. I've located a new broker and moved past this, but I am still bothered by my lack of screening in the first place. I have some thoughts on what needs to be done going forward as I transition more of my business to outside managers.

I would however love to hear other people's thoughts and experiences with screening listing agents to ensure they have the fastest turn and get the best tenants? 

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John Warren
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
4y

@Sean McKee having done some leasing for trusted clients, I can tell you it is literally one of our least favorite activities. I have a system I use to fill units in my 114 unit, and the system allows me to show the unit... 1 or maybe 2 times per week. When I have leased for other people, I have realized that they often times do not manage their properties the way I do. We get tenant calls for weeks afterwards because no one has reached out... also there is a lot of liability. I had my first HUD sniffer try to trap me and my team on a fair housing issue which we fortunately did not violate, but it was very stressful.

A lot of folks want it both ways. They want to self manage and outsource the hard parts. What you really need here is a property manager. Even if you need the PM for just a year or two, that is what you actually need when you are out of the country. 

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  • Mariel DeVito
    Member since 2022 · 115 posts · 49 votes
    4y

    I would consider reading reviews on the agent/broker. The beautiful thing about the virtual world is that you are able to find platform like google reviews where you can get the feedback. You should also consider joining local neighborhood chat groups to see if the locals can recommend the right person for you. Searching for a list doesn’t always give you the best candidate.

    2Reply
  • Debbie Beckford
    Member since 2021 · 3 posts · 3 votes
    4y

    Unfortunately, there are great agent/brokers with hardly any reviews and bad ones with good reviews.

    I think one of the best sources are referrals. For example, look at similar properties in the area that were recently rented, and ask specific questions about the agent's work ethics.  How long was it listed? What was the screening process etc. You can also do this with property management companies as well. 

    In this market, properties are almost renting themselves, but due diligence is definite, especially with leasing.   

    3Reply
  • Scott E.
    Contractor · Scottsdale, AZ · Member since 2010 · 2k+ posts · 3k+ votes
    4y

    As others have mentioned, selecting a broker based on a referral is the best thing you can do. Also if it's taking you that long to place a tenant, it's possible they have overpriced your unit.

    3Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    4y

    It is really simple. #WhoYouWorkWithMatters.

    And that doesnt even nessecarily mean that a good broker is the solution. Im an incredible sales agent. Ive got a ton of rental properties myself, and can teach my clients anything they want to know about tenant screening, how to find them etc. However Im simply not going to be good at getting someone else a tenant because it is a very low paying task which would take me away from my high paying tasks. So it isnt just about getting a good broker....its about getting a good broker who works in the specialty you are seeking. Here, Id probably be recommending a property manager.

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  • Karl B.
    Rental Property Investor · Erie, PA · Member since 2015 · 1k+ posts · 2k+ votes
    4y

    Honestly, if you have a trusted friend/family member in the area they can likely do a better job at placing a good, solid tenant. I've seen brokers and PM companies place tenants who were obviously really bad on paper (prior evictions, low credit).

    If you want to go the PM route as you would rather pay 10% than deal with hearing from a tenant from time to time, then be certain to read online reviews. Just be aware that it's super easy for PM companies to get fake Google reviews and I've seen PM companies write their own reviews (weird how all their reviews were by reviewers who have only ever written one review total on their Google account). Yelp reviews are harder to fake and in a large city like Chicago there should be a good amount of Chicago companies that have a few Yelp reviews each.

    I would also definitely recommend contacting some Chicago-local BPers and asking if they have worked with any brokers/PMs who have performed well. 

    1Reply
  • Paul De Luca
    Real Estate Agent · Chicago, IL · Member since 2018 · 1k+ posts · 1k+ votes
    4y

    @Sean McKee

    Referrals from people you know & trust will always be the best and most reliable way of finding good professionals. But like you said you had to scramble to find a different agent to get your unit rented and since you were trying to move fast you didn't do much screening or interviewing. Have a list of questions for the agent and get a sense of realistic expectations. On your end, you need to make sure your unit is priced competitively and you have screening criteria that will attract only the most desirable tenants. 

    1Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    4y

    @Sean McKee

    Let's dissect and summarize what you wrote:

    1) You hired a real estate agent to find a tenant

    2) That real estate agent only shows the property an hour/week

    3) You're not happy with how long it's taking

    Questions & Observations:

    1) Real good real estate agents aren't taking on many rental listings, because they have so many buy/sell prospects to work with. As @Russell Brazil posted, why would the take on the lower paying task of looking for a tenant?
    - The good ones often have assistants and buyer's agents working for them that they would assign to put a rental in the MLS and let other agents do the showings.

    2) Why is the agent only showing the property? Why aren't other agents showing the property? 
    - Did you negotiate the agent down on their commission, so they have nothing to offer a sub-agent to bring an applicant for you to review? You are doing your own application screenings, right?

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  • John Warren
    Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
    4y

    @Sean McKee having done some leasing for trusted clients, I can tell you it is literally one of our least favorite activities. I have a system I use to fill units in my 114 unit, and the system allows me to show the unit... 1 or maybe 2 times per week. When I have leased for other people, I have realized that they often times do not manage their properties the way I do. We get tenant calls for weeks afterwards because no one has reached out... also there is a lot of liability. I had my first HUD sniffer try to trap me and my team on a fair housing issue which we fortunately did not violate, but it was very stressful.

    A lot of folks want it both ways. They want to self manage and outsource the hard parts. What you really need here is a property manager. Even if you need the PM for just a year or two, that is what you actually need when you are out of the country. 

    4Reply
  • Sean McKee
    OP
    Rental Property Investor · Chicago, IL · Member since 2017 · 266 posts · 188 votes
    4y

    Thanks everyone for your input! Luckily I am getting back in a few weeks. I am in the process of turning it over to a property manager, but I will still retain control of which leasing agents show the units.

    @Russell Brazil,@Drew Sygit,You are correct that leasing is a low paid job and not very rewarding. There were other agents involved with showing the property and had my other broker rent a similar unit for the same rate. I honestly think it was not a good fit for both of us.

    @John Warren- You make a very good point about people only wanting to outsource the hard and low paying aspects of the business. I never thought about it that way. You must have a solid system if you can get away with showing it once per week! However it wasn't working with the broker I tried out. I'm glad you were able to get around HUD!

    0Reply
  • Keenan Fitzpatrick
    Flipper/Rehabber · Anchorage, AK · Member since 2017 · 223 posts · 177 votes
    4y

    @Sean McKee

    Another consideration aside from screening your broker is that we’re in a great market for sellers and landlords so you have to look at your property. Granted, I think an agent renting a property might make a bigger difference than one selling a property but a property that is marketed well only has a few factors as to why it won’t sell or rent.

    -floorplan

    -condition

    -location

    -price

    If it isn’t selling or renting, chances are the market is telling you that it isn’t priced right given the location, condition, and floorplan. I hope this helps! :)

    1Reply
  • Jonathan KlemmBusiness Member
    Moderator
    Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
    4y

    Hey @Sean McKee - Rentals are a tricky game and I think like anything you have a small number of people that crush it and the majority of everyone else is average at best.

    Sounds like being overseas has been a blessing and I can see how it would only help improve your systems.  We use Hemlane to help automate our listings/showings.  Here in Chicago, you don't have to have a real estate agent list a rental but it does help for certain areas.

    What are you doing for tenant screening and security deposit vs. move-in fees?

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