If you're in the real estate industry, then you've probably heard of a real estate agent referral program before. But do you know what it is, or how it could benefit you and your business? If you're looking for an easy way to find reliable tenants fast, then you might be interested in learning more.
Before deciding to use a real estate referral program, however, there are some things you should know. Read on now to find out the need-to-know information about the referral program in real estate and what it could mean for you.
What Is a Real Estate Agent Referral Program?
Let's take a sweeping overview of what exactly a real estate referral program entails. Whether you're a real estate investor, a realtor, or a property manager, you could stand to benefit greatly from such a program.
A real estate agent referral program involves property managers finding tenants for their properties through a real estate referral agent. These so-called real estate leads can come from either the agent themselves or a lead generation company. This system offers many benefits for all parties involved.
1. You'll Be Dealing With Quality Leads
The program works on a referral basis. Because of this, you know that the potential tenants you're in contact with are of good quality and serious about renting. This means you'll likely have a positive outcome in terms of finding good tenants.
2. You Can Avoid Vacant Properties
For a rental property owner, having a property sit vacant and losing money is the worst-case scenario. You want to reduce the time between tenants as much as possible. Working with a real estate agent can help you to do this.
3. You'll Need an Agreement
Before you begin working with a real estate referral program, you'll need to be aware of and in agreement with the terms being offered. All parties involved should sign a real estate referral agreement in acknowledgement of this. Make sure you've looked over the contract before making any commitments.
4. There are Fees Involved
One important thing to note is that there are real estate referral fees involved with this type of arrangement. These will be set out in the contract you sign. The usual figure would be about is 25%.
5. Increase Profit Margins
While there are extra fees to consider with this type of program, you also have the potential to earn more on each transaction. Customers who are referred by an agent can be more trusting of suggested prices. Due to this fact, most referrals can result in a much higher profit margin.
Do You Need a Referral Program in Real Estate?
After learning more about this type of system, could a real estate agent referral program be the right move for your real estate investment? If you'd like to learn more, we'd be happy to talk you through our program. Get in touch with Carolina Property Management today to discuss what your options are.
