How to find the best Real Estate Agent

[Monish Anand]

I own 3 SFH rentals currently but am looking at new markets and so I want to meet the best real estate agents at the markets I'm considering. In the past I would do Zillow Real Estate agents, and it was always pretty terrible, average real estate agents. The one agent I met who I liked was at an open house. What do you recommend on how to find the best real estate agents in a new area?

I want a real estate agent with a hustler's mentality, who knows the neighborhoods, studies appreciation and deal analysis already, understands short-term rentals, and is potentially looking to be a scalable partner with me. And I'm looking in 3 or 4 different markets in the country.

[Russell Brazil]

Id start with defining which markets you want to be in, then see if people here have recommendations.

[Nathan Gesner]

Quote from @Monish Anand:

Start by looking for personal recommendations from investors in that market, then look on realtor.com or a google search.

DO NOT use agents suggested by a website like realtor, Zillow, etc. Those agents are recommended because they paid to be first on the list. Most agents paying for leads are inexperienced, which is why they need to pay for leads.

Look for an agent with a minimum of 15 years of active experience. Many agents are part-timers, and you need to weed those out. I have 250 agents in my market and half of them have only sold 1-2 properties.

TIP: look for a property manager first. Don't invest in a market if you can't find a quality PM! I've seen too many investors find a good property, then hand it over to a terrible PM and the entire thing fails. A good PM can refer you to top sales agents in the market, they can tell you what type of rentals are in demand, they can tell you which areas are best for investments, and they can cross-check what the sales agent tells you about specific properties.

Remember: cheaper doesn't mean you'll make more money.

Start by going to www.narpm.org to search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start. You can also search Google and read reviews. Try interviewing at least three managers.

1. Ask how many units they manage and how much experience they have. Feel free to inquire about their staff qualifications if it's a larger organization.

2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, especially if they violate the terms of your agreement.

3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 6% management fee but the extra fees can add up to be more than the other company that charges 10% with no additional fees. Fees should be clearly stated in writing, easy to understand, and justifiable. Common fees will include a set-up fee, a leasing fee for each turnover or a lease renewal fee, marking up maintenance, retaining late fees, and more. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate, particularly if you have a lot of rentals.

4. Review their lease agreement and addenda. Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.

5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance, late rent, evictions, turnover, etc. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that policies are enforced equally and fairly by their entire staff.

6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. A tenant complaining online might indicate that the property manager handled them appropriately, so be sure to ask the manager for their side of the story.

7. Look at their marketing strategy. Are they doing everything possible to expose properties to the broadest possible market? Are their listings detailed with good-quality photos? Can they prove how long it takes to rent a vacant property?

This isn't inclusive but should give you a good start. If you have specific questions about property management, I'll be happy to help!

[Matthew Paul]

Just call up an agent and ask them if they are the best in their market , odds are the first call you make will be the one .

[Theresa Harris]

Narrow down your market first.  Then call a few offices and ask if they have a realtor who works with investors.  They should be able to help you look at properties that would make good rentals, but some of that leg work is going to be on you.

[Shawn McCormick]

@Monish Anand Bigger Pockets has an 'agent finder' tool. It is a paid service to be a part of, but generally if they are in the BP community, they likely understand investing more than the average agent out there. Just look near the top of the page and click the 'agents' tab. 

Another way could be to call up the REIA in the areas you are looking into and see if they have agent members, it won't be hard to find several. I am on the board of CFRI, our local REIA and I know we have dozens of agents and investors that have their license if only to list and buy their own properties, but could recommend some to you.

My brokerage is part of Anywhere RE, we have the biggest names under our umbrella (ERA, Caldwell Banker, Sotherbys, BHG, Century 21) and we have a fantastic referral program that I can hand pick an agent anywhere in the country and interview them for you to make sure they have the qualities you are looking for. Let me know if that is something you would consider. 

Best of luck!

[Kristian Sexton]

@Monish Anand My top recommendation is to begin by contacting property management companies in each target area. It's important to vet these companies thoroughly. Most property management companies are licensed realtors with extensive experience working with investors and providing valuable insights into their local market. In my experience, allowing these professionals to guide you can be highly beneficial, as they are likely to recommend properties they would be comfortable managing. Since they are responsible for maintaining the relationship with you after the transaction closes, this approach adds an extra layer of confidence and security to your investment.

[Drew Sygit]

@Monish Anand find a good PMC in the area and they often have great agents or can recommend one.

[Monish Anand]

Quote from @Russell Brazil:

Id start with defining which markets you want to be in, then see if people here have recommendations.

 Thank you everyone for the suggestions. It looks like big recommendations are contacting PM company or using BP Agent Finder tool. 

In the interest of connecting with agents here, my interested markets are:
Bloomington-Normal, IL
Crescent City, CA
Colombus, GA
Louisville, KY
Savannah, GA 
Peoria, IL
Milwaukee, WI

[Adam Bartomeo]

FYI Your top agents do not do open houses.

[Monish Anand]

Quote from @Adam Bartomeo:

FYI Your top agents do not do open houses.

 Really?? I had no idea. How do they sell listings then?

[Adam Bartomeo]

Open houses are typically used to generate leads, not sell houses. Most of the time a newer or unsuccessful agents will host open houses as they build their book of business. Established agents are too busy to host open houses and they have leads coming in from previous sales and referrals. It is rare that you sell a house through an open house. 

[John Williams]

Quote from @Monish Anand:

I own 3 SFH rentals currently but am looking at new markets and so I want to meet the best real estate agents at the markets I'm considering. In the past I would do Zillow Real Estate agents, and it was always pretty terrible, average real estate agents. The one agent I met who I liked was at an open house. What do you recommend on how to find the best real estate agents in a new area?

I want a real estate agent with a hustler's mentality, who knows the neighborhoods, studies appreciation and deal analysis already, understands short-term rentals, and is potentially looking to be a scalable partner with me. And I'm looking in 3 or 4 different markets in the country.

If you are able, attend a local RE meetup and connect face-to-face with agents there. Pick their brain about investing to ascertain their knowledge.

If not, try joining local real estate groups on Facebook and asking for a recommendation. 

Another good strategy is to connect with a local property manager that does real estate sales, or can refer to an investor-friendly agent.