Recent Study Shows Realtors Lose $300M a Year By Not Offering A Rental Solution

Recent Study Shows Realtor

By Jim Tormey

Americans are known for being highly mobile, yet few people are comfortable transitioning between homes. Every homeowner dreams of a smooth moving process when leaving one house behind and moving into another.

Packing, staging, selling, escrow, searching, paying, and moving sounds simple enough, but the process is far from seamless. Unforeseen issues sprout up during the move, damaging client egos and harming client-REALTOR® relations.

Deferred move-in dates, skeptical buyers, construction delays, time in escrow, and fluctuations in the real estate market are far from predictable. Home buyers count on REALTORS® to help guide them through these murky waters.

A recent survey found that 23 percent of people who use REALTORS® to purchase a home have also turned to them for help in renting a temporary home. Unfortunately, this same survey discovered that over 60 percent of REALTORS® were completely unable to help their clients find a temporary home when the situation arose. The reason? Most often, the REALTOR® simply “didn’t do rentals.” This illustrates a significant missed opportunity as there are almost 700,000 rental bookings in the United States each year. At standard referral rates, this amounts to almost $300 million in lost revenue each year. Plus, it damages your personal brand.

It’s important for REALTORS® to be proactive when guiding clients through the unpredictable ups and downs of the real estate market – to be prepared for everything. A great way to be prepared for these unforeseen circumstances is to partner with companies who provide temporary, furnished housing and keep your clients happy and safe from turmoil.

Timing
Selling one home while simultaneously buying the next is seldom a seamless process. Home buyers are up against multiple unpredictable variables, and the time until closing their new home is uncertain. Not all clients can afford a down payment on their next mortgage before the current sale closes, so transitioning is contingent on closing the sale.

Landlords favor year-long leases, and monthly rentals are often extremely difficult to find at reasonable prices. The real estate agent’s aforementioned inability to help in these situations can be perceived as an unwillingness to help, which will of course damage the client’s perception of their REALTOR®.

The recent study revealed a variety of issues that cause REALTORS® to fail to meet their client’s temporary rental needs (see accompanying pie chart for distribution). A temporary housing partner can solve issues around type of accommodation, location and price range.

In an industry so focused on relationships and reputation, it’s absolutely critical to be willing – and able – to help your clients when they need you most.

Renovations & Insurance Relocation
Home renovations always present a difficult living situation, as they make the house virtually unlivable. There are also unforeseen circumstances, such as natural disasters, necessary repairs, termites, dry rot, mold, etc. that can either uproot unprepared families from their homes or prevent new homeowners from moving in on time.

Move-in ready turns into not-quite-there-yet when a few simple alterations dissolve into months of demolition and repair.

Should your clients overpay for extended stay hotels or sublet substandard rooms? When you’re able to step forward with a viable alternative, it can strengthen the client- REALTOR® relations.

Be Prepared for Anything
Even with years of experience, REALTORS® can’t predict the future for their clients. Switch from being reactive to proactive by establishing relevant partnerships in advance. You want to be a useful resource for your client, not just another dead end.

Put your clients first, and your success will follow. The more prepared you are for these difficult situations, the better you and your clients will be able to handle them. Be proactive. Let your clients know that you have established relationships with companies that can provide month-to-month housing in the inevitable event that something less than perfect happens.

Keep your clients mobile and ensure that the home selling and buying process is as seamless as possible. With these partnerships in place, you can focus more on selling homes and avoid the stress of difficult situations. Your client’s peace of mind is paramount to building a stronger client- REALTOR® rapport at the outset of your relationship.

Those REALTORS® that can step up to the plate and provide these differentiated solutions at times when their clients need them most will see their reputations, referrals and repeat customers skyrocket.


Jim Tormey is involved in the growth and business development of HomeSuite Inc. Homesuite has the largest inventory of 30-plus day furnished rentals available online. Browse the curated platform for high-quality properties. HomeSuite can be your trusted partner when things get difficult for your clients. HomeSuite can find them a great place to live for as long as they need. HomeSuite guarantees peace of mind, as it takes care of the entire process, from discovery to move-in. Partner with HomeSuite to provide your clients with an even better experience. For more information, contact Jim at (323) 430-8268 or visit www.yourhomesuite.com/brokers.