Building and Managing a Rental Brokerage, Part 4: Preach the “Hybrid Philosophy”
Part 4: Preach the “Hybrid Philosophy”
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The brutal truth is that rental agents burn out. Very few people last more than a couple years if their entire business is renting property. Career professionals make more money and that is where the real profit lies for a company. A brokerage cannot reach its potential riding the production of a bunch of first and second year agents that are “giving real estate a try” or are “doing rentals to make some quick money.”
A motto that has served me well over the years is “Rentals pays your rent. Sales buys your home.” Make that your mantra with every hire from the initial interview and you will be amazed at the results. I teach a system that is simple and incredibly effective: 1) Rent enough property to pay your bills. 2) Impress everyone you meet. 3) Stay in touch with them. Your renters will become your future buyers and your business and your sales will grow every year until rentals are just an afterthought. “Leasing pays your bills and sales will build your wealth.”
The core of the “Hybrid Philosophy”, a term I coined in the spring of 2000 and have been promoting in Manhattan ever since, is that agents don’t stop doing rentals and “start doing sales.” I’ve found that to be the kiss of death for many people. My method adds sales on top of a person’s existing rental business so that their income increases and they continue to benefit from the consistent monthly cash flowgenerated by leasing. In short, the rental side is the “bread and butter” and the sales side is the “gravy.”
The “Hybrid Philosophy” benefits a company in a multitude of ways. Hiring becomes easier and more effective. Agent turnover is reduced. Career professionals will become the norm instead of the exception and quite simply production will increase dramatically. Create and cultivate real estate professionals that find people a home regardless of whether they want to rent or buy and your company will thrive!
Catch up on this series or read more of Greg Young’s posts.
