Categories: Tips

Renting Your Home Without Using A Real Estate Agent: Benefits And Drawbacks

Finding tenants for every landlord is a challenging task. Hiring a real estate agent is one of the options for you getting a tenant. Renting a home comes with benefits and drawbacks without the real estate agent’s services.

Benefits and Drawbacks of Renting Your Home without Using a Real Estate Agent

Benefit 1- Save money

The first obvious benefit is saving money in property renting without a real estate agent. You may keep the third parties away and it results in saving money. Skip the agent and their commission fees. However, remember the advantage of hiring an experienced agent outweighs the drawbacks.

Benefit 2- Rent faster

Getting a tenant by you is faster. A real estate agent will take a longer time. It is not bad, as he will take careful steps to ensure they are the right people as tenants for your property. He will try to get more information, check their income source, and perform a credit and background check. You, as the property owner, will not afford to be careless, but considering investment strategies will draw a lease the same day. It is a fast process for you, and you start getting rent.

Benefit 3- Your property you know

It is your property, and you know every detail of it. You can inform the prospects about the amenities, location advantage, taxes, enticing features, and utility bills average. An estate agent will not have all these details. He must research your property, as not many go on for this effort. You can tell the tenants about public transportation and give more details on digital trends.

Benefit 4- Ask questions

Skipping a real estate agent is beneficial for a property owner. You get to ask questions to the prospective tenant directly, and the feel in person is better. Ask the number of people and when they are moving. It helps in deciding. Meeting in person with the tenants allows for spotting red flags that an agent may miss accidentally or deliberately hide it. It is your property, and you know the finance capital stake and outcome. Decide automatically as per your investment.

Drawback 1- No proper documentation

Thorough paperwork eliminates issues. There is no room for wrong eviction when everything is proper. The drawback is that real estate is of no help with evictions. They connect with tenants and are doing property marketing. In situations, where tenants sue you for some default in paperwork, the agent will step aside. You may have to face a tough time in the court.

Drawback 2- Not the right rent

It is easier to inform the proper rent. Each house price will be different even in the same area. An agent will specify and determine the rental price. If you have less experience as a property owner, they will either charge less rent, aiming for more commission from the client. It may go the other way to assuring you more rent, and you receive less.

Drawback 3- Do all the work

Finding a tenant is to do all the work. Right from sifting applications to checking background or credit and interviewing the tenants, you do it all. If you wish to enjoy the renting process, hire an experienced agent. Although, it is good to find a tenant as you can directly talk to them. It is frustrating and time-consuming to handle by yourself, but you save on commission. However, you cannot escape from doing all the work.

Drawback 4- A rookie mistake

Making mistakes is common while renting property.

Hiring the services of a real estate agent is one of the investment strategies as they will not make mistakes. They know what is legal and comply with federal, state, and local tenant and landlord laws. It is a drawback to make rookie mistakes, but the estate agent will be helpful.

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