ORLANDO, Fla. – Aug. 5, 2011 – A sluggish housing market may be biting into your revenue stream: That’s why more real estate professionals find that rentals can be one way to generate extra income for their business.
It’s a way to help some homeowners avoid foreclosure by helping them turn it into a rental. It can also lead to new business: Some owners find could find that earning rental fees allows them to purchase another property. Or current renters could decide it’s time to become a homeowner.
By 2015, an estimated 4.3 million more rental units will be added to the market, and there will be 1.8 million fewer owned-homes, according to David Vivero, CEO of RentJuice, which provides online rental relationship management software to real estate professionals. In other words, 463,000 home sales may be lost by 2015, or up to $2.4 billion in lost commissions. On the other hand, 150 million leases will be signed worth $6.8 billion in commissions.
“If you offer only sales, [a total of] $11 billion in commissions [will be] out of your reach," Vivero says.
While leasing rentals generally generates smaller commissions than selling, it can provide “a steady income stream” that can “help keep frustrated agents afloat,” Vivero said.
Source: “Consumers, Real Estate Pros Tap Shift to Rentals,” Inman News (July 29, 2011
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