When it comes to leasing single-family homes in Texas, the journey often goes through a specific, influential route: Realtors. These real estate professionals aren’t just agents skilled in negotiation and property marketing; they’re gatekeepers to a complex, interconnected world of listing services that most property owners can’t easily access independently.
The Single Family Rental Listing Landscape
Realtors in Texas, and indeed nationally, are part of extensive trade associations, giving them control over Multiple Listing Services (MLS). These services are critical databases, forming the backbone of single-family rental home listings. They’re not just repositories of information; they’re dynamic networks where properties get significant exposure, vastly increasing their chances of being leased.
Public facing Realtor sites are big players in the single-family rental home search landscape in Texas. They are controlled by Realtor trade associations, making them go-to platforms for potential tenants. However, the influence of Realtors doesn’t end there. Numerous large Internet Listing Sites (ILSs) of single family rentals, though not directly controlled by Realtor associations, often syndicate data from MLS feeds, expanding the reach of these listings exponentially. Additionally, smaller brokerages (perhaps hundreds or even thousands throughout Texas) that are Realtor members also syndicate rental home listings from an MLS data source. Â
What does this mean for property managers and landlords? For many, including our property management firm, being part of a Realtor trade association is almost a necessity. The primary driver is access: being able to list the homes we manage on the MLS ensures they’re broadcasted far and wide across the internet.
Moreover, being a Realtor — a member of these potent trade associations — allows us to offer commissions to fellow Realtors representing potential tenants. These commissions, usually between 10%-50% of the monthly rent, are powerful incentives for Realtors to show our properties to the tenants they represent.
Strategies For Leasing without a Realtor
Considering going it alone, sans Realtor? It’s possible, but brace yourself for some challenges. The MLS system’s reach and the competitive market make it an uphill task to find tenants without this valuable network. This isn’t about coercing landlords into using property management services like ours but a practical perspective on the market realities.
Landlords keen on bypassing the Realtor route can explore options like:Â
- Erecting ‘for rent’ signs on the property, targeting local traffic.Â
- Paying to list on major ILSs that accept non-MLS listings.Â
- Directly reaching out to Realtors via email blasts, offering commissions for tenant referrals. With Realtor emails readily available from the Texas Real Estate Commission (TREC), this can be a feasible strategy.
However, it’s important to weigh the pros and cons. While forgoing a Realtor spares you their commission, the costs, time, and effort of independently listing and promoting a property can quickly add up. Compared to property sales, where avoiding hefty commissions is a significant saving, lease commissions are relatively lower, usually around a month’s rent.
Attempting to lease a property in Texas without a Realtor can be more than just a daunting task; it’s often an inefficient one. The MLS system’s dominance in the rental market and the relatively lower costs of Realtor commissions for leasing (compared to selling) usually outweigh the benefits of going it alone. Navigating the Texas real estate market might be complicated, but with the right partnerships, it doesn’t have to be a lonesome struggle.