At one time, working with leasing was thought to be for new agents only. Working with rental clients was a way to learn the business and make an income before closing a first deal. That mindset applied to a different market, though.
In the industry, there’s sometimes a stigma against working with renters, said Barrett Henry, Tampa Bay, Florida-based broker associate at RE/MAX Collective. But in this market, you need to be involved in rentals, he said. Henry estimates that 10% of his business comes from rentals.
“The ultimate way to avoid having to pay for leads is to build a solid database of people who like and trust you,” Henry explains. “When that renter is ready to buy, they will remember who took those phone calls when no one else would.”
Here’s why you and your agents should give rentals and property management another look.
More Opportunities in Rentals
Existing-home sales increased 1.5% in September 2026, according to an October 13 report from the National Association of REALTORS®. Despite the modest increase, August and September marked the slowest months for home sales this year.
Additionally, affordability remains a challenge. According to NAR's October 2026 research update, its Housing Affordability Index declined from a year earlier. Rising mortgage rates are also keeping some buyers on the sidelines.
Those conditions create opportunities in the rental market. Affordability issues “have created a universe where it’s significantly cheaper on an average basis to rent than own in every major market,” said Ishay Grinburg, founder and CEO of Rental Beast. “Virtually every [agent] will say some version of ‘I constantly get demand to help find a rental,’” Grinburg adds.
Leasing services offer “a sizable pocket of revenue that folks aren’t tapping into,” said Grinburg. “There is real money in rentals…It’s not like a sideshow or niche market. It is untapped by and large and an open opportunity for agents.”
Another opportunity is the increasing share of homes owned by investors, many of whom are “mom-and-pops” likely to outsource leasing and property management.
But the business case for leasing varies by market. Barry Whittington, managing broker at RE/MAX First in Oklahoma City, Oklahoma, said leasing generally doesn’t provide much revenue in his market. Meanwhile, in the Miami area, rentals can be lucrative, said Coral Gables, Florida-based Jorge L. Guerra Jr., president and chief executive officer of Real Estate Sales Force (RESF). “Every market is different.”
Legislative changes can also affect the economics of leasing. For example, New York City and Massachusetts recently passed laws requiring broker fees to be paid by whoever hired the broker, often the landlord.
A Case for Property Management
Property management income is more predictable than sales or leasing income since it typically involves an annual agreement with recurring revenue.
“If I sit down with a property manager who manages 1,000 doors, they can say, ‘I am getting $45,000 per month in recurring revenue.’ It’s stable and a great way to diversify your business,” said Grinburg.
To cater to landlords interested in tenant placement services but not complete property management, Henry offers a “lease and list” program. This choice can appeal to clients who are underwater or can’t sell in the current market. Plus, as he points out, “they might turn into a seller when the market turns again.”
Whittington has noticed similar demand from would-be sellers who “paid too much for their home during the run-up.” They might not be ready to sell, “but because they got a 2-3.5% mortgage rate, they’re a prime candidate to rent.”
For Whittington, who has managed rentals for more than 30 years, property management has been “a good source for other income streams and prospects.” He recommends setting up a separate business entity for property management to protect the brokerage's brand from being associated with evictions.
Converting Renters to Buyers
Even for experienced agents, leasing can be a worthy endeavor. By being receptive to renters, “you’re opening the funnel wide to receive these renters into your universe,” said Grinburg. “It’s the complete lifecycle. It makes the business of rentals more lucrative since you are building a massive pipeline of sales transactions.”
Once you convert renters, “they tend to be your client forever,” said Guerra. When he had rental clients, he would stay in touch with them and help “put them on a path to homeownership,” he said. You can encourage your agents to do the same.
Sometimes, clients who plan to rent don’t realize buying might make more sense, said Henry. He recounts how he helped a couple who’d foreclosed on a home a decade ago qualify for a mortgage. Over the years, he represented them in a purchase, a sale and property management. He also referred them to a buying agent in another state and represented their family member in a purchase.
Henry encourages agents to ask prospective renters why they're renting. Some mistakenly believe they need 20% down to purchase a home, he said, when FHA loans can require as little as 3.5% down and down payment assistance programs may be available.
Whether renters are ready to buy now or years from now, helping them find a home today can lay the foundation for a lasting client relationship.
