Have you ever wondered, what is a leasing agent? Or, have you found yourself questioning if the position is the same as a real estate agent. If so, you have come to the perfect place. The two occupations share many similarities, but they differ in several ways as well. In some cases, a real estate agent may even serve as an independent leasing agent. They usually do so for clients through a real estate company though.
Read further to gain more insight into, what is a leasing agent?
The primary difference between leasing agents and real estate agents is the amount of money that they make. Real estate agents get paid on a commission basis. The amount varies from place to place, but the national standard is around 5 to 6%. It is possible but not typical for these individuals to earn a salary, and even if they do get one, it is not usually massive. Still, the opportunity can be lucrative if the person puts forth the effort to be successful. For example, if a home sells for $345,000, the 6% payday would be $20,700.
The buyer’s agent and the seller’s agent typically split these funds equally. However, sometimes, the agreement may benefit one party more than the other. For this purpose, a 50/50 split will take place so that each person will get $10,350. Agents are required to work under a licensed broker in most areas though, which means the profits will become divided yet again. The amount the person will bring home will differ because of the arrangement they have with the brokerage firm. Here’s a video explaining how the commission breakdown works:
Meanwhile, the majority of a leasing agent’s income comes from a salary. These professionals get a particular percentage of the rent as agreed upon with the landlord or property owner. The rate varies between places. In some cases, it may only be 2%, while in other instances, it may be as much as 15%. Hence, a leasing agent can make a substantial amount of money, especially if they are responsible for a large apartment complex. However, the earned amount is often based off of the first three months or an entire year of paid rent.
Research from salary.com shows as of September 1, 2018, the average earnings for leasing consultants in the United States was $29,527. The typical range is between $26,694 and $32,777 though. A variety of different factors play a role in determining an agent’s pay such as experience, education, and certifications.
Unless the person is a bonafide employee of an apartment complex or a property owner, they must have a real estate license to rent, buy, and sell properties. Failing to obtain the proper credentials while accepting compensation for helping someone find a unit for rent could land you in hot water. In Texas, TREC, a pseudonym for the Texas Real Estate Commission, takes this business seriously. If leasing agents are caught doing this deed without the proper license, they can face criminal charges as well as steep fines. So, what is a leasing agent? A person that needs education and training to operate.
State boards don’t just hand out credentials to anyone. You will need to do a few things to earn your license. For one, a person must complete state-approved pre-licensing courses. The individual has to pass an exam and get a sponsoring broker as well. These things may seem like a waste of time and a pain in the neck, but they ensure that qualified candidates fill the positions. In Texas, a person can even set themselves apart from their competitors by joining the Texas Association of Realtors. By finishing four required education courses, the licensee can gain the title of Texas Residential Leasing Specialist.
One perk of a real estate agent that is a big draw for many people is that they regularly make their own schedule. They still have a supervisor as they work under a broker’s license, but most of the time, the professionals likely feel as if they are their own boss. In the meantime, leasing agents usually have to stay on-site at the office and work a fixed schedule. While this aspect is not a turn off for some folks, if you are not looking for a regular 9 to 5 job, this position might not be the right choice for you. Some of the more common duties include…
The job outlook for real estate professionals is promising. If you have ever wondered, what is a leasing agent? And, you started following through with becoming one, the chances are good that you will be able to find a work opportunity. Research from the Bureau of Labor Statistics shows that the employment rate for real estate professionals is expected to grow about 6-percent from 2016 to 2026. So, perhaps there has never been a better time than now to start a new career.
Much like with any other job, there are ups and downs along with pros and cons of becoming a leasing agent. Do some research and ask others in the field about their experiences. If it sounds like the ideal opportunity for you, then, start making the change now rather than later. What is a leasing agent? The answer is simple, you are, providing that you are looking for a fast-paced, challenging, and rewarding career all rolled into one.
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