As the sharing economy continues to grow, it’s crucial for realtors to stay on top of these trends. Many buyers are interested in taking advantage of the home sharing economy. As an agent, you’ll want to stay aware of the sharing market to offer guidance for potential buyers and sellers. In this article, we’ll define how real estate agents can capitalize on home sharing to bring more value to their clients.
Show Your Buyer the Income Potential
Especially in the Bay Area, home prices continue to rise across previously-affordable areas like Oakland and the East Bay. Because of this, many home buyers are eager to find any possible “deal.” Your clients may be open to a fixer or a less desirable neighborhood. But, home sharing can offer a potentially better solution to their budget problem.
Show your buyers how they can offset the cost of a mortgage by renting their home on Airbnb. Pull up comps from home sharing websites to give them a sense of the monthly revenue. Help them see the potential in Accessory Dwelling Units (ADUs) or separate entrances.
In truth, renovating a fixer or waiting for appreciation in an up-and-coming neighborhood is riskier than short-term renting. While both options attempt to rationalize a long-term gain, the outcome is unknown. Showing the income potential of a similar property on Airbnb is a much more tangible and immediate alternative.
Add More Value as an Agent
Whether you’re working with a first-time buyer or a seasoned homeowner, chances are neither are too familiar with short-term renting. Home sharing is still a relatively new concept with constantly changing laws. Your clients will expect you to know their desired neighborhood and market trends. But, you can add additional insights by sharing your knowledge of home sharing rules in the area.
Show your value by keeping up to date with any legislature around home sharing. Take a look at our Simple Guide to Berkeley Home Sharing Rules to get a sense of some typical requirements. But, each city will have their own ordinances. Like all good realtors, the key is to keep learning. Include home sharing trends in your educational toolkit and you’ll be ahead of the game.
Provide More Resources for Your Clients
One of the most desirable things an agent can offer is a community of trustworthy professionals. Buyers are more incentivized to get a fixer if you can connect them with a great contractor. Having relationships with lenders or insurance agents is a huge plus for clients as well. Continue building your network with home sharing in mind.
Bring in a referral like Guesthop, a short-term rental property management company, to show them how easily they can become hosts. A host management company is an invaluable resource to buyers considering home sharing. And, again, providing credible resources can encourage buyers to take a leap they might not have otherwise. Once they see the benefit of using a professional hosting service, the idea of home sharing won’t seem so intimidating.
Real Estate Agents and Home Sharing
There are many ways for real estate agents to capitalize on the home sharing economy. Add another tool to your belt by staying on top of home sharing trends. Leverage your knowledge of short-term rental income to find creative ways to meet your clients’ budgets. Attract more customers by offering valuable insights on the restrictions for home sharing. And, assist your buyers with relevant resources when they’re ready to rent their home.
Want to learn more about how agents can partner with Guesthop? Contact us today!