What is a Real Estate Leasing Agent?
In this article
- What Does a Real Estate Agent Do?
- What Does a Leasing Agent Do?
- Key Differences Between a Real Estate Agent and a Leasing Agent
- Licensing and Legal Requirements
- Income and Earning Potential
- Work Environment Schedule
- Career Growth and Advancement Opportunities
- Which Role Is Right For You?
- How to Get Started in Either Career
- Start Your Real Estate Career With Agent Campus by 360training
Is a leasing agent the same as a real estate agent? It’s common for people to confuse these roles, but the distinction matters if you’re making a career choice between these roles.
In this article, we’ll compare real estate agents’ and leasing agents’ responsibilities, pre-licensing needs, income potential, and advancement opportunities.
What Does a Real Estate Agent Do?
Real estate agents facilitate the buying and selling of properties by:
- Working primarily on sales rather than rentals
- Representing buyers or sellers in property transactions
- Marketing properties for sale to attract buyers
- Negotiating purchase contracts
- Guiding clients through closings
What Does a Leasing Agent Do?
Leasing agents are also real estate professionals, but they act as intermediaries between landlords and prospective renters by:
- Focusing on property rentals rather than sales
- Helping property owners find tenants
- Marketing rental units
- Showing apartments or commercial spaces
- Screening applicants
- Assisting with lease agreements
Key Differences Between a Real Estate Agent and a Leasing Agent
What is the difference between a real estate agent and a leasing agent? The short answer is that real estate agents focus on facilitating sales, while leasing agents focus on facilitating rentals.
In the table below, we’ll provide a quick look at the high-level differences in work style, income, and legal responsibility that result.
| Leasing Agent | Real Estate Agent | |
|---|---|---|
| Primary Focus | Facilitating rentals | Facilitating sales |
| Client Base | Landlords and tenants | Real estate buyers, sellers, and investors |
| Deal Size | Smaller (rental, not ownership; term-limited contracts) | Large (transfer of ownership) |
| Income and Compensation | Hourly pay with smaller commissions or bonuses | Entirely commission, based on property sale price |
| License Requirements | May require a leasing or real estate license | Requires a real estate license |
| Legal Responsibility | Serve as a limited agent with lower liability | Broader fiduciary responsibility to clients, held to a higher standard of competency and ethics |
| Scope of Work | Markets rentals, shows properties, manages leases | Markets and shows properties, negotiates purchase contracts |
| Duration of Relationships | Short-term (leasing process duration) | Ongoing client relationships are the goal |
Below, we’ll break down key differences between the two roles in detail by topic.
Licensing and Legal Requirements
Real estate agents require a real estate license that qualifies them to represent others during a real estate transaction in exchange for compensation.
Do leasing agents need a real estate license? It depends on the state as well as the specific duties they’re assigned.
Most states require a broker’s or property management license to legally manage or lease property on behalf of others, but the leasing agent jobs as we’ve described them in this article, with limited scope and hourly pay, are often exempted because they don’t negotiate terms or perform other license-limited responsibilities. These limited agents almost always need to be supervised by someone with a broker’s license, however.
Certain states, like Illinois, do require a specific leasing agent license for people in a limited leasing agent role. It’s less rigorous than a full real estate license.
It’s important to check local regulations and licensing requirements where you intend to operate.
Income and Earning Potential
In the vast majority of cases, real estate agents make their money entirely on commission. They get paid as a percentage of sale prices, but only for completed sales. On one hand, this provides real estate agents with theoretically unlimited earnings, but it means they don’t make money if they don’t close any deals.
Leasing agents typically earn an hourly wage, but they’re often eligible for bonuses or smaller commissions based on their performance. Additionally, some employers offer perks such as reduced rent or rental incentives, allowing leasing agents to reside within the communities they serve at a lower cost. This pay structure provides leasing agents with an income stability that isn’t guaranteed for real estate agents, but puts a cap on their potential earnings.
Work Environment and Schedule
Both real estate agents and leasing agents are doing their jobs based on their clients’ schedules. In both cases, this means they often need to work evenings and weekends, impacting their work-life balance.
Real estate agents have more field-based work and more work-from-home opportunities. Parts of their jobs require site visits to properties scattered all over, which can rack up a lot of mileage on their cars. However, other parts of their job can be done from anywhere with a work device; in the modern age, this means real estate agents often eschew office time for remote work.
Leasing agents, on the other hand, are likely to spend most of the day “at work.” They’re generally required to be present at the rental property to conduct tours and assist walk-in prospects. This may mix their day up between being deskbound and out on site, but it does limit their ability to choose remote work.
Career Growth and Advancement Opportunities
Both real estate agents and leasing agents have many growth opportunities, whether through advancement or lateral change.
For real estate agents, the next logical step is a broker’s license, which opens up a number of options. You can either continue in the sales role but operate more independently for a better commission split (as an Associate Broker), shift to managerial or operational responsibilities in a brokerage (as a Designated or Managing Broker), or start your own brokerage (as a Broker-Owner).
Leasing agents can also advance into a licensed property management role, or they can choose to move from residential leasing up to higher-stakes commercial leasing.
Then there are lateral opportunities, such as moving between the sales and rental sides. Many skills gained by real estate agents or leasing agents transfer easily to the other role – both market properties, connect with clients, conduct showings, and handle contracts.
Which Role Is Right for You?
When choosing between the roles of real estate agent and leasing agent, there are several questions you need to ask yourself, including:
- Income Stability: How comfortable are you with commission-based income? Real estate agents’ pay structure means they often earn no income (or negative income) in the first year, and this is not feasible for everyone. If the idea of earning only on commission is stressful for you, you’re probably better off as a leasing agent.
- Long-Term Earnings Goals: While leasing agents have more income stability, their pay structure doesn’t allow for unlimited earnings potential the way real estate agents’ do. If this is very important to you, you might be better off as a real estate agent.
- Sales vs. Rentals: Leasing agents handle smaller deals at a faster pace. Real estate agents have responsibility for larger transactions that take months to complete. Consider which style of work is more appealing to you.
- Client Relationships: Real estate agents build long-term client relationships, thriving on repeat and referral business. Leasing agents have briefer relationships, meaning they need to make faster connections but not maintain them. Which seems more like your style?
- Willingness to Pursue Licensing: While earning a real estate license is a relatively short process compared to some job prerequisites, you can often become a limited leasing agent with no licensing at all. This makes the role a good place to dip your toes in the water if you’re not sure real estate is right for you.
How to Get Started in Either Career
The process for getting started as a real estate or leasing agent will depend on your state, so here’s a simple roadmap for moving forward.
- Research State Requirements: Look into licensing requirements for the role, required courses and exams, and the time and money commitments involved.
- Explore Entry-Level Opportunities: Consider roles like leasing consultant, real estate assistant, or administrative support within a brokerage or property management company. These positions open the door for hands-on experience and industry knowledge without fully committing.
- Complete the Required Education or Training: Most real estate agent roles require pre-licensing education and passing a state licensing exam. Leasing agent requirements vary between on-the-job training and more limited licensing requirements. Either way, invest in quality education to prepare you for your role.
- Choose Your Path: Sales or Leasing. The choice will influence your daily work, income structure, and career opportunities.
Start Your Real Estate Career With Agent Campus by 360training
Education is the foundation for your career, whether you choose to become a real estate agent or a leasing agent.
We offer online real estate courses that put your education in your own hands. You can work at your own pace from any device with an internet connection, providing you with the flexibility to study around your other obligations.
We offer approved pre-licensing courses in many states that will help you gain a foundation in real estate principles and prepare you for the real estate licensing exam. We also offer continuing education options to aid your career growth and help you meet license renewal requirements.
Get started in the career of your choice today!
