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Leasing Agents - Exploding Idea
PLUS - an exploding trend and some great business ideas
Eric from ExplodingIdeas
March 24, 2024
Happy Sunday,
This week we’re looking at a real estate trend that has been growing over time. The segment of the market that we’ll be looking at is often low paid and contains elements of knowledge work and communication, which can be streamlined and automated using new technology like AI.
Now let’s get into it…
This weeks exploding idea: Leasing Agents
New business ideas: 3 Leasing Agent businesses you can start
👉Want access to the Ideas Database? Click here (link).
Read time: 4 min 12
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Exploding Idea: Leasing Agent
Over the past two decades, the role of leasing agents in the housing market has seen significant growth. These individuals act as intermediaries between property owners and potential tenants, playing a crucial role in the rental process.
If you have ever sought out an apartment in a major city, it's likely that a leasing agent facilitated your viewing and leasing process.
Leasing agents have become an critical part of property management, primarily due to their ability to provide a buffer between the landlord and the tenant to provide landlord safety, security, and convenience.
For landlords with multiple properties, hiring a leasing agent to manage tenant interactions is a better use of resources.
According to the National Apartment Association, the professionalism within this field has increased, with agents receiving better training and enhancing their skills in sales, management, and customer service. This evolution reflects a maturation within the industry, resulting in more sophisticated and high-quality service.
Despite these improvements on the supply side, the compensation for leasing agents remains low, and their work hours extend beyond the traditional 9-5 schedule.
This aspect of their employment has rendered the field ripe for disruption, with many industry insiders, including Multifamily Executive, acknowledging technology's potential to streamline much of the tenant onboarding process.
The Opportunity
A primary challenge within this niche is the generally low compensation for leasing agents, particularly in densely populated cities where income disparities are widening.
This segment's susceptibility to disruption stems from a combination of relatively low wages and the nature of their work, which includes elements of knowledge work.
Companies like Swiftlane are building products to disrupt much of the top-of-funnel process around tenant screening and rent payments. Startup incubators like Y Combinator are making similar bets as well, as they recently backed heypurple.
Learn how to monetize this trend in the Deep Dive (link here)
How did you like this idea? |
Business Idea #1
Name: LeaseOptiTech
Industry: Real Estate and Property Management
Problem: The real estate rental market has experienced significant shifts, with rising property prices and stringent mortgage criteria leading to an increased demand for rental properties. This surge in demand, coupled with the challenges of low compensation for leasing agents and the inefficiency of traditional tenant onboarding processes, highlights a need for innovation.
Solution: LeaseOptiTech offers a comprehensive software solution tailored for small to medium-sized property owners and leasing agents. This platform simplifies the tenant onboarding process, from property listing to lease signing, through an intuitive, user-friendly interface. By automating tasks such as scheduling viewings, applicant screening, and lease agreement generation, LeaseOptiTech reduces the administrative burden on leasing agents, enabling them to focus on higher-value activities. The platform also features a built-in communication tool that facilitates direct interaction between property owners, leasing agents, and potential tenants, ensuring a smoother, more efficient leasing process.
Business Idea #2
Name: QuickLeaseAI
Industry: Real Estate Technology
Problem: Property owners and leasing agents struggle with the time-consuming process of managing multiple listings, communicating with potential tenants, and efficiently screening candidates. This inefficiency can result in longer vacancy periods, reduced income for property owners, and a frustrating experience for both tenants and landlords.
Solution: The platform utilizes artificial intelligence to match potential tenants with properties based on their preferences and qualifications, significantly reducing the time leasing agents and landlords spend on screening and communication.
Business Idea #3
Name: ChatLeaseBot
Industry: Real Estate Communication and Scheduling
Problem: The process of scheduling property viewings and managing inquiries from potential tenants can be overwhelming for leasing agents. The traditional communication methods often lead to delays, missed opportunities, and a frustrating experience for both tenants and agents. The challenge is to provide an immediate, accessible, and efficient way for potential tenants to engage with leasing agents, schedule viewings, and ask questions without the need for constant manual input from the agents.
Solution: ChatLeaseBot addresses this challenge by offering a free, AI-driven chatbot service designed for real estate leasing agents and property managers. This platform allows potential tenants to interact with an intelligent chatbot via text messages or through integration on the property’s website and social media pages. The chatbot is capable of answering frequently asked questions, providing detailed information about available properties, and most importantly, scheduling property viewings directly into the leasing agent’s calendar.