Difference Between Leasing Agent VS Real Estate Agent

You must have seen several professionals indulging in the transactions, handling, and the process of buying and selling houses in real estate. Leasing agents and real estate agents are prominent figures among them. Both of them form an integral part of finding housing. Many people use the terms “real estate agent” and “leasing agent” interchangeably. However, they both fulfill distinct roles and responsibilities. Understanding the disparities between the two is important to fulfill your real estate goals. Here, we will uncover the nitty-gritty of leasing agents vs. real estate agents and shed light on many of their aspects. Keep reading to satisfy your intellect. 

First things first, 

What is a Leasing Agent?

Also called a leasing consultant, a leasing agent is a professional who assists prospective renters in finding the right property tenants and helps them fill tenant vacancies at open properties. In addition to the residential properties, some leasing agents also facilitate commercial real estate transactions meant for stores, office buildings, and restaurants. Thus, you can say that leasing agents are the bridge between tenants and the individuals from whom they lease properties. Residential leasing agents help potential tenants set the terms and conditions of lease and pricing, conduct property tours, negotiate leases, and collect security deposits. They maintain a good relationship with their clients and current renters, follow fair housing laws, and secure yearly renewals for lease agreements. 

What is a Real Estate Agent?

Licensed professionals whose main aim is to facilitate real estate transactions. They either work independently or represent a brokerage or any other agent (Commercial Real Estate Agent). There are three types of real estate agents involved in the transaction. A listing agent (representing the seller), a buying agent (representing the buyer), and a dual agent (working on behalf of both the seller and the buyer). 

Difference Between a Real Estate Agent & a Leasing Agent

Now that you know the definition of the two, let’s proceed with more information on leasing agent vs real estate agent.

Job Requirements

The minimum requirement for both the leasing agent and real estate agent to enter this field is to at least have a high school diploma. However, many employees prefer those who have completed a bachelor’s degree from college or have completed some kind of college coursework. The job requirements for becoming a leasing and real estate agent vary from country to country. Leasing agents have comparatively less stringent licensing requirements than real estate agents. After getting a real estate license, a real estate agent is often subject to ongoing education to maintain their credentials. 

Job Duties

Leasing agents have several duties. However, their main focus is to handle rental transactions. Their responsibilities include advertising and marketing the properties to attract potential renters and fill tenant vacancies. They have to screen the right tenants by conducting background and credit checks on the tenants and finally signing the tenancy agreement. 

Real estate agents also have to fulfill the same duties and responsibilities. However, they have their chief focus on selling out the properties rather than renting them. They are responsible for looking after everything involved in the paperwork after selling the property.  

Skills

The broad skill set required for both the real estate agent and leasing agent is the same. They need to have tenacious, hardworking, and excellent customer service skills. The job profile for both occupations includes handling the clients throughout the process. So, it is of utmost importance to establish a relationship of trust with everyone. They can’t work without having an excellent set of communication skills because their job profile includes interacting with the tenants, current residents, and potential renters and explaining complex concepts to them in an easier way. 

To add more, leasing agents might need an extra set of skills like marketing and advertising because they need to promote properties and create listings. On the other hand, a real estate agent has to have good financial and negotiation skills to make it easy for their clients to secure loans and crack the best deal. 

Work environment 

Generally, leasing agents work in offices, real estate firms, or property management companies to access the listings and the databases of the properties. Sometimes, they have to travel to visit clients. While real estate agents are typically active in the field. Visiting properties and meeting the clients tops their list. Some real estate agents set up their own businesses where they work independently, and some others work for larger companies.  

Income Difference Between a Real Estate Agent & a Leasing Agent

There are slight differences between the salary structure of a leasing and a real estate agent. The factors affecting the income of both parties include commission structures, transaction volume, market demand, and specialization. It is believed that real estate agents tend to earn more because they often handle higher-value transactions. Leasing agents might earn slightly less as their prime focus is on renting out the properties. 

The next difference is based on when they are paid. Typically, a real estate agent is paid at closing, which means 30 or more days from the sale date. In comparison, a leasing agent receives his share when a tenant enters the property. It is seen that tenants enter the property at a faster pace as compared to homeowners. This is the reason a leasing agent receives his part of the share earlier than a real estate agent. 

Market demand

Several economic and market factors affect the payments of a real estate agent and a leasing agent. When there is a high demand for properties in the market, real estate agents might need to handle increased transaction volume, which results in higher income. On the contrary, the demand for rental properties in the rental market often remains steady. That is why leasing agents tend to have more consistent income.  

Commission structure 

Real estate agents receive their commission as per the pre-agreed percentage of the property’s sale price or lease value. While, lease commissions are the means of income for leasing agents as decided in the lease agreement. It is calculated as a percentage of the total lease value, or it could be a flat fee agreed upon with the landlord. 

All in all, real estate agents can earn loads of money through commissions from selling high-value properties, and leasing agents can make the most from predictable commission structures in the rental market. 

To make a long story short

Both real estate and leasing agents play a vital role in the real estate industry. You need to consider the differences between the two if you want to navigate the real estate market seamlessly. Whether you are a landlord finding the right tenants for his property or a tenant searching for the perfect rental property, it is essential to decode the differences between the two to arrive at the right decision. 

That being said, if you want your real estate worries to vanish, consulting Michael Reyes for the answer. Our team of experts aids you meet your real estate goals in a hassle-free manner with our tried and tested techniques. We ensure that we provide you with the best deal possible. Contact us for more information.