Where Does a Leasing Agent's Job End? Also Condos Make Sense Now

[Art Maydan]

So I got my broker license just for MLS access and my brother-in-law asked me to manage a couple of his properties and lease out a condo. I figured, "Why not, it's experience I don't have and maybe I'll end up opening a little property management shop on the side. I'm trying to quit my job asap anyway." So I've got a signed lease for this condo. Is my job over? Do I just hand it over to the landlord and collect my fee? Or am I supposed to coordinate move-in, coordinate with contractors to clean/paint the place, etc? Seems like those are property manager responsibilities and he's self-managing the condo (association is a PITA).

Also, we have a signed lease starting 6/1 and they’re asking me to view the place again Sunday (one of them wasn’t there originally). I’d really rather not show it. My wife and I are both very busy and that’s our weekend and the lease is signed. Feels like I’m done here. I have a video walk-through. Like dude, just wait a week. Too late to back out. Your name’s on that lease and we have your move-in fees. Do I have any fiduciary duty to do the showing? Thoughts?

On a somewhat related note, this experience has made me reconsider my whole investment strategy. For myself, I like 2-4 unit buildings in B/C neighborhoods in Chicago's South Side. Cash flow is good and tenants are working class people. Cap rates are good but there are definite ceilings to rents and there's a lot of pushback on rents. I've never put one of these on the MLS, but I'm not sure a lot of people are using agents for these properties. I could be wrong. I got a lot of leads from Craigslist, Zillow, and Padmapper. And a lot of low quality ones from a yard sign.

With this condo, it's a whole different story. It's in River West in a prime location. It's a 3Bed/2Bath with the current tenants paying $3,300 including a parking spot and internet/cable. We started looking late at the start of May shooting for a June 1 lease start. I tried to keep it off the MLS at first to avoid paying a broker and had some good leads, but the price was too high. He wanted $3,750. Eventually dropped down to $3,300. Once I put it on the MLS last week, I've had probably 3 showings a day. Lots of high-quality candidates. A bit of a bidding war started and rent went up to $3,500. I didn't even have to go do the showings. I just spoke with the leasing agents and told them to go do it.

A lot of these people looking for high-end condos with agents are very price-insensitive. It's like they've accepted that they'll be working 12 hour days until they're 45, they're delaying thinking about saving or investing until then, and the only currency they care for is social currency in their niche social circles. I wouldn't even call this place luxury. My duplex is way nicer and I bought it for $270K. My downstairs tenant pays $1,500 and lives nicer than these people. They're just paying to be close to the Loop and a bunch of sad, overworked flustered people in their 30s as well as a bunch of obnoxious "daddy's money" college kids.

My sister bought this place for $460K back in ’08. It’s worth like $650K now. So it’s a great return for them. But even if you bought it at market value today, it would be a decent return. And you’d have almost no tenant hassle. These people are all perfect little 9-5 worker bees who are scared of confrontation. Meanwhile, we just had to deal with homeland security kicking down the door of one of our triplexes. So I don’t know… 6CAP with no hassle and bidding wars versus 10CAP and homeland security… I’m sticking with my small multis, but it’s interesting to see things from a different perspective.