What You Need to Know if You Want to Work in the Property Rental Industry
What is the Property Rental Industry?
The rental market is a sector of the real estate industry. Instead of selling properties, a person who is professionally known as a rental agent, rents them out to tenants. This includes apartments, homes, and other properties that are rented for an extended period of time.
An “extended period of time” can mean different things to different people. It’s important to note that in the rental industry, short-term rental is usually defined as less than six months, while long-term rental is six months or more.
People all over rent for different reasons, and there are plenty of tips for success in going into the rental market. There are also different ways you can make money in the rental industry, just like there are different types of renting.
Types of Rentals
Probably one of the most well-known ways you can rent a property to someone is through Airbnb. Short for “Air Bed and Breakfast”, Airbnb allows you to rent your space to someone looking for a place to stay. Depending on where your space is located and how much you’re charging, you can easily make over $20,000 a year just by renting out your home.
Airbnb falls under the category of short-term rentals. Rules are different everywhere, so it’s good to be familiar with short-term rental rules by city— especially if you own more than one property.
As a rental agent, you can work for a rental company. Unlike a real estate agent, becoming a rental agent does not require you to obtain a license. However, your job is similar to that of a real estate agent, but you’ll be helping people find properties to rent instead of properties to buy.
The most common type of property that a rental agent rents out is an apartment. Apartments aren’t usually considered to be short-term rentals, as most people rent apartments for six months or longer.
Vacation rentals are similar to Airbnb, in the sense that you’re renting your property to travelers. Don’t own any additional properties? No worries, rental companies can rent out vacation properties too. So if you’re working as a rental agent or recently invested in a property, you’ll be able to rent out that property as a vacation home.
Vacation rentals are also considered short-term rentals, so if you do have additional properties you’d like to temporarily rent out, remember that short-term rental regulations are not the same everywhere.
Choosing the Best Path in the Rental Market
This depends on your goals as a business person. Depending on where you are located, Airbnb rentals can be a great side-hustle— especially if you yourself travel a lot. Whenever you’re not home, you can rent it out to another traveler while you are away.
Again, becoming a rental agent does not require a license like becoming a real estate agent. Working for a rental agency that specializes in all types of rental properties gives you a greater opportunity to grow your income. This would be the better option for those interested in real estate as a career, since rental broking gives you experience in the real estate world.
Whichever route you decide to take, remember that with any business venture it’s important to have good business etiquette. Always stay organized, be professional, and remember that communication is key. Whether you are working for a rental company or you are renting your own personal property or properties, these are all essential to being successful in business.
The entire rental industry is still relatively new and unknown to most, but it’s a great way to make some extra cash, or get your foot in the door to the world of real estate.
Again, be aware and knowledgeable of the rules and regulations in your state and city when it comes to short-term rentals. Working for an actual rental company is likely to take care of that burden for you, but when renting out your own property this is good to know to avoid hefty fines.