What is a Real Estate Leasing Agent?
Leasing agents play a pivotal role in connecting property owners with tenants. Whether it's finding the perfect apartment for a young professional or securing a commercial space for a growing business, leasing agents are the bridge that makes it all possible. But what exactly does a real estate leasing agent do, and why are they essential to the rental market?
This blog dives into the responsibilities, skills, and career requirements of leasing agents, offering insights for anyone considering this profession or simply curious about how leasing works behind the scenes.
What Is a Leasing Agent?
A leasing agent is a real estate professional responsible for helping property owners find tenants for their rental properties. They act as intermediaries between landlords and prospective renters, ensuring the properties are leased efficiently, and tenants are satisfied with their rental agent experience. Leasing specialists typically work for property management agents, real estate firms, or directly for property managers.
What Does a Leasing Agent Do?
A leasing agent’s duties may include:
- Marketing Properties: Advertising rental listings through online platforms, social media, and traditional methods to attract potential tenants.
- Showing Properties: Scheduling and conducting tours of rental units for prospective tenants.
- Screening Tenants: Reviewing rental applications, conducting background checks, and verifying credit and income to ensure reliable tenants.
- Negotiating Lease Terms: Assisting in drafting and negotiating lease agreements that benefit both the landlord and the tenant.
- Ensuring Legal Compliance: Making sure leases comply with local rental laws and regulations.
- Customer Service: Addressing tenant inquiries and helping resolve issues related to the rental process
What Is the Difference Between a Leasing Agent and a Real Estate Agent?
The main difference between a leasing agent and a real estate agent lies in their focus and scope of work within the real estate industry. Here’s a breakdown of how they compare:
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Leasing Agent |
Real Estate Agent |
|
|
Primary Focus |
Rental properties |
Buying and selling properties |
|
Client Base |
Landlords and tenants |
Homebuyers, sellers, and investors |
|
Income and Compensation |
Smaller commission or hourly pay |
Higher commission based on property sale price |
|
License Requirements |
May require a leasing or real estate license |
Requires a real estate license |
|
Scope of Work |
Markets rentals, shows properties, manages leases |
Lists and sells properties, negotiates purchase contracts |
|
Duration of Relationships |
Short-term (leasing process duration) |
Long-term relationships (clients buying/selling) |
How Much Do Leasing Agents Make?
According to ZipRecruiter, leasing agents typically earn an average hourly wage of approximately $19, translating to an annual salary of around $38,515. Commercial leasing agents tend to earn significantly more, with an average annual salary of $68,884 and top earners making up to $92,500.
However, earnings can vary based on factors such as location, property type, and experience level. Agents in urban areas or working with commercial properties often earn higher commissions and salaries. Many leasing agents supplement their base pay with commissions, often earning a percentage of the first month's rent or a flat fee per lease, which can significantly boost their total income.
Pros and Cons of Being a Leasing Agent
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Pros |
Cons |
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Leasing agents frequently interact with a diverse range of prospective tenants, making it an ideal role for those who enjoy building relationships and engaging with people from various backgrounds. |
The role involves dealing with a wide array of personalities, including difficult or demanding clients, which can be stressful. |
|
Often stationed in well-maintained properties, leasing agents benefit from aesthetically pleasing surroundings, which can enhance job satisfaction. |
Timely responses to inquiries are crucial in the competitive rental market, potentially leading to interruptions during personal time to address prospective tenants' questions. |
|
Unlike real estate agents who rely solely on commissions, leasing agents typically receive a consistent hourly wage supplemented by commissions and bonuses, providing financial stability. |
Entry-level positions may offer modest hourly wages; however, total compensation can increase with commissions and performance-based bonuses. |
|
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. |
Leasing agents are generally required to be present at the property to conduct tours and assist walk-in prospects, limiting opportunities for remote work. |
|
Many leasing agent positions do not require a college degree, focusing instead on interpersonal and sales skills, making it accessible for individuals without extensive formal education. |
The necessity to accommodate prospective tenants' schedules often requires working evenings and weekends, impacting work-life balance. |
|
Part-time opportunities are available, accommodating individuals seeking supplementary income or those balancing other commitments. |
What Are the Leasing Agent Requirements?
The requirements to become a leasing agent depend on several factors, including your local regulations, the type of property (e.g., residential vs. commercial), the size of the property or company, and the preferences of the employer.
To ensure you're well-prepared, review the rules in your jurisdiction and examine job postings for common qualifications. Below is an overview of general expectations:
Education Requirements
- Minimum Education: Most leasing agent positions require at least a high school diploma or equivalent.
- Preferred Education: Some employers may prefer candidates with an associate degree or coursework in fields such as real estate, business, or sales.
- Certifications: Depending on the employer or jurisdiction, professional certifications may be required in addition to, or instead of, formal education.
Legal and Licensing Requirements
- Real Estate Licensing:
- In many areas, leasing agents are not required to hold a real estate license.
- Some states impose restrictions, allowing leasing activities only under the supervision of a licensed real estate professional.
- Specific licensing requirements vary widely, so it's crucial to understand your local rules.
- State-Specific Licensing:
- Certain states, like Illinois, require a dedicated leasing agent license. For example, in Illinois, aspiring leasing agents must complete 15 hours of approved pre-license coursework and pass a state licensing exam.
Key Skills for Leasing Agents
- Communication Skills: The ability to engage and build rapport with prospective tenants.
- Attention to Detail: Ensuring lease agreements and paperwork are accurate and complete.
- Time Management: Handling multiple tasks and appointments efficiently.
- Computer Proficiency: Familiarity with property management software, CRM tools, and digital marketing platforms.
- Sales and Marketing Skills: Experience in promoting properties and closing deals.
How To Become A Leasing Agent
Becoming a leasing agent is an accessible career path that offers growth opportunities in the real estate industry. The first step is to familiarize yourself with the rules and requirements in your area, explore job listings, and identify local opportunities. Understanding whether licensing is required in your jurisdiction is crucial before applying for jobs. Additionally, taking related courses or researching industry best practices can help you stand out as a candidate.
Leasing Consultant Training
Most leasing agents receive on-the-job training when they start. This training typically lasts a few weeks to several months and is part of the onboarding process. During this time, new agents learn key skills, tasks, and the technology used in leasing offices.
Training often begins with shadowing an experienced leasing agent to observe daily operations and gain insights into the role. Afterward, new agents gradually take on responsibilities under direct supervision, such as conducting property tours, processing applications, and negotiating lease terms.
Leasing Agent Certifications
Obtaining a professional certification can enhance your credentials and validate your expertise to employers. One of the most recognized certifications for leasing agents comes from the National Apartment Association (NAA).
- Certified Apartment Leasing Professional (CALP)
The CALP designation, previously known as NALP, is an entry-level certification designed to showcase your leasing knowledge and skills.- Requirements: Completion of seven CALP courses and passing a certification exam.
- Curriculum Topics: Legal considerations, marketing strategies, competitive analysis, conducting market surveys, finding new tenants, and addressing current tenants’ needs.
- Experience: While six months of on-the-job experience is required for full CALP designation, candidates can take the exam without experience. Those who pass receive a provisional CALP credential, which can strengthen their resume and aid in job searches.
- Certified Apartment Manager (CAM)
For those looking to advance their careers, the CAM designation provides in-depth training and expertise in apartment management.- Requirements: At least one year of experience, completion of 40 hours of CAM coursework, and passing a certification exam.
- Focus Areas: Advanced topics, including financial management, leadership, risk management, and property operations.
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What Does A Leasing Agent Do?
A leasing consultant's duties vary by location and employer. Some real estate commissions limit the activities that unlicensed individuals can perform.
Generally speaking, a leasing assistant's duties may include:
- Pre-qualifying potential tenants with credit and background checks
- Showing rental units to prospective tenants
- Preparing, executing, and processing rental applications
- Confirming references and other application information
- Collecting fees, security deposits, and rental payments
- Coordinating move-ins and distributing move-in packets
- Creating and distributing marketing materials to advertise available units
- Acting as the first line of contact for existing tenants
Leasing agents typically work in a leasing office when not on-site at a rental property. They often work a fixed schedule but may be asked to work outside traditional hours in order to accommodate prospective tenants' schedules.
Leasing Agent Requirements
The requirements for becoming a leasing agent vary based on the rules in your jurisdiction, the type of property (example: residential vs commercial), property or company size, and employer preferences.
It's always a good idea to check your local regulations and examine local job listings for common prerequisites, but here's a general idea of what you can expect.
Lease Agent Education
Typically, leasing agent jobs have a minimum requirement of a high school diploma or the equivalent.
Employers may have stricter preferences for your education level, like an associate degree or at least some education related to real estate, sales, and business.
Professional certification may also be required by particular employers or jurisdictions, instead of or in addition to your education.
Legal Requirements and Leasing Agent Licensing
In most jurisdictions, you don't need a real estate license to be a leasing agent.
Some states place restrictions. Most allow you to perform at least some leasing activities as long as you're under the supervision of a licensed real estate professional, but the specifics vary.
A few require leasing agents to get a particular type of professional license. Illinois is a prominent example – you need to earn a leasing agent license by completing 15 credit hours of approved pre-license coursework and passing a state licensing exam.
Required Skills
There are a lot of "soft skills" related to leasing agent work.
These include:
- Communication skills
- Being Detail-Oriented
- Time Management
- Computer Skills
- Sales and Marketing Experience
Even without relevant education or work experience, you can strengthen your job application if you can explain how you've learned and demonstrated these skills in other jobs.
How To Become A Leasing Agent
The first step for becoming a leasing agent is to learn about the rules where you live, scout the job listings, and figure out your local opportunities.
Make sure you meet any licensing requirements before you start applying for jobs. It can also be helpful to take related classes or to do reading on the subject.
Leasing Consultant Training
In most cases, leasing offices will provide on-the-job training for new agents. This training period can be a few weeks to a few months long, as part of the onboarding process.
During lease agent training, you'll learn the specific skills, tasks, and technology for the role. Typically, you'll shadow an experienced agent for a time, then you'll begin to perform your duties under direct supervision.
Lease Agent Certifications
Professional certifications are a good way to validate your knowledge and skills to an objective standard. The most well-known certifications in this residential leasing come from the National Apartment Association (NAA).
The most entry-level is their Certified Apartment Leasing Professional (CALP) designation. Previously, this was called NALP, where N stood for National.
The CALP credential requires completing seven CALP courses and then passing a certification exam. The curriculum covers topics like legal considerations, marketing, assessing the competition, market surveys, finding new tenants, and meeting the needs of current tenants.
To earn the full CALP designation, you need at least six months of experience under your belt. However, you don't need to any experience to take the exam. If you pass, you'll hold a provisional CALP credential until you qualify. This means you can use CALP as a resume-building tool to help you secure a job.
The NAA's next step up is called the Certified Apartment Manager (CAM) designation. To earn a CAM credential, you need a least a year of experience, 40 hours of CAM coursework, and to pass a certification exam. The curriculum is more in-depth and includes advanced concepts.
Career Advancement Possibilities for Leasing Agents
Becoming a leasing agent can be a great way to get a working knowledge of real estate while making a living. It's also a job that lets you decide if you like the industry before you commit to the real estate licensing process.
As a result, it's the gateway to a real estate career for many people.
Even though leasing agents focus on rental properties, you'll gain a lot of experience relevant to real estate purchases, as well. You can apply what you've learned – about salesmanship, rapport-building, marketing, relevant real estate laws, and much more – to all kinds of sales niches.
You may also choose to stay focused on the rental market.
In most states, becoming a full-fledged property manager can be a long road. In most cases, it requires a broker's license, which is a level up from a real estate agent. As a result, it can take years to earn.
However, in some big metro areas, there's demand for agent-level licensees in the rental market. Once you have a real estate license, you'll be qualified to handle tasks that unlicensed leasing agents can't – that's why some REALTOR Associations have special designations for licensed leasing specialists. For example, in Texas, you can earn Texas Residential Leasing Specialist (TRLS) certification.
If and when you decide it's time to earn your real estate license, consider online pre-licensing coursework. It costs less and lets you schedule learning at your own pace, on your own schedule. Studying online allows you to keep your day job (as a leasing agent, perhaps) and spend as much time on difficult topics as you like. Just make sure you choose a state-approved, well-respected real estate school to put your trust in.
