Getting Into Rentals, Part 3: Sphere of Influence
We have all heard the saying “It’s not what you know, it’s who you know.” The real estate business is very much about who you know. The term used these days is “sphere of influence,” or SOI. Whether you are an individual agent or the owner of a brokerage, you want to know more people and you want more people to know you. You need a plan to methodically grow your SOI.
The rental business grows SOI faster through the sheer volume and speed of transactions. From the brokerage stand point, a successful and consistent rental business means more ads, more signs, more happy landlords and more satisfied customers. In general, this means a big uptick in exposure for the company and a tremendous increase in brand recognition among the public.
I teach agents that the rental business serves two purposes. The first is that rental transactions help pay your bills. The second, and far more valuable purpose, is that you meet people and this is where the real money is. Your SOI is your “gold mine”! A very simple and extremely effective business plan is to rent enough property to survive, make every effort to impress and then stay in touch with everyone you meet both in business and socially.
I have a fundamental belief that this business should get easier and more lucrative every year. For an agent doing rentals, the primary reasons for this are repeat business, referrals, and sales. In a large metropolitan market, the young upwardly mobile professionals that you help find their first or second rental are going to become your buyers and sellers a few years down the road. Agents that stay in touch with their contacts rise up the financial food chain right along with their people.
To catch up with the rest of this series, read the rest of Greg Young’s posts here.