8 Pros and Cons of Finding Tenants Without a Real Estate Agent

Have you ever wondered if it’s worth it to market your rental property yourself without using a realtor? Here are 8 pros and cons of renting your home without an agent.

1. Pro: You save money

Saving money on renting your property without a real estate agent is an obvious pro. Anytime you avoid hiring third parties, you automatically save money. If you skip the realtor, you’ll save on commission fees.

However, the benefits of working with an experienced agent usually outweigh the disadvantages, so keep that in mind.

2. Con: You may not have proper documentation.

Proper and accurate paperwork will ease legal issues with tenants. For example, if the tenant wrongfully decides to sue you for an eviction, you’ll need a solid piece of paper to prove you’ve done everything on the books.

Although your real estate agent doesn’t help you with evictions, they market your property, meet with tenants, and get their paperwork in order. If a tenant sues you for any reason and your original lease or other paperwork is not properly completed, it can be held against you in court.

3. Pro: You can rent your property quickly.

A real estate agent will be very thorough when helping you rent your property. This is not a bad thing, but it can make the process take longer. For example, you might feel comfortable renting to someone you meet at your local bakery, set up a lease the same day, and have them move in the same week. A real estate agent gathers their information, runs a background check and credit report, and investigates their source of income.

4. Con: You may not pay the right rent.

Determining the right rent is easier said than done. Even when you compare your place to others in the same area, you’ll see price differences. A real estate agent knows what factors determine the right price for a rental. If you don’t have that experience, you will charge too much or not get enough rent.

5. Pro: You know your property well

There are some realtors who do research before committing to renting your property, but not all do the effort. Because you know your property well, you can tell prospects everything they would want to know about the home if they rented it themselves, including all amenities, attractive features, property taxes and average utility bills. You can also tell tenants about nearby attractions, parks, restaurants, public transportation, and more.

6. Con: You can make beginner mistakes

Everyone makes mistakes, but when it comes to renting out your property, you can’t afford to make mistakes. For example, if you advertise your rental unit in a discriminatory manner, you may be liable under the Fair Housing Act. When working with a real estate agent, you won’t make this mistake because you know what’s legal and your ads will comply with local, state, and federal landlord-tenant laws.

7. Pro: You can ask questions

If you follow Fair Housing laws, skip using a realtor, you can ask prospective tenants questions and make them feel like they’re in person. For example, you can ask them why they are moving, how many people live in the house, how long they have held their current job, and other questions that will help you make decisions.

When you meet with tenants in person, you can spot red flags that a realtor might not. After all, it’s your property and you have a financial stake in how it’s taken care of. You are automatically more invested in the outcome.

8. Con: You have to do all the work

Does screening applications, interviewing prospective tenants and conducting credit/background checks sound like something you want to do? If not, you won’t enjoy the process of renting your property. Although it’s a great idea to meet with your applicants in person, it’s time-consuming and can be frustrating if you have other things to do, such as taking care of a family or working on another job.

Should You Use a Realtor to Rent Your Home?

As you can see, the advantages of using a realtor outweigh the disadvantages. Although using a real estate agent may incur commission fees, the peace of mind of knowing that your property has been rented correctly is well worth the cost.