We’re almost mid-way into December! Agents everywhere are enjoying the Holiday season and getting ready for the final days of 2019 and the first days of 2020. It’s time to ask yourself how you will make this new year better than the last? How can you secure your success in the real estate market this decade? While we’re sure the real estate market will stay as dynamic as ever, take the first first days 2020 to set yourself up for success in the new year. Feeling stuck in a rut? A successful business plan can be the gift that keeps giving. Check out Rental Beast’s 2020 business plan.
1. Make a Real Estate Commission Earning Calculation:
An expert coach from Rental Beast University helped us make this 2020 rental real estate commission earning calculator. Check it out, make some numbers that work for you and your business, and put it into action all year long! It’s rinse and repeat–in 2021, you can return to this real estate commission earning calculator and use it to inform your year again.
Here’s how it works:
My 2020 Rental Real Estate Commission Earnings Calculation
- How much in rental real estate commissions do you wish to earn in 2020?
- What is the average rental transaction for your area?
- What is the commission split with your broker?
- How many rental transactions do you need to complete?
- How many rental contacts do you need to be in contact with per month?
- I want to earn $10,000 in rental commissions in 2020.
- The average rental transaction for my area is $1,000
- The commission split with my broker is 50% = $550 net commission
- To earn $10,000, I need to complete 2 rental transactions per month (that’s ($10,000/$500)/ 12, which is actually 1.6, but we’ll round up!)
- Assuming a 25% lead conversion rate (1 in 4 conversion rate), you will need to be in contact with 8 leads per month (2 x 4)
Sound good? Copy the earning calculator, change up these numbers to create something that makes sense for your business, and get to work!
2. Make the most of your business plan by getting acquainted with your finances and your local area.
Here’s how you can make the most use of your rental commission calculator– sit down with your finances, gather the most up-to-date knowledge about the areas you work in, and be as realistic as possible about what you can manage to do in the new year. We give you a suggested Rental Real Estate Commission Earnings Calculation above; however, you’ll find this calculator most useful when it’s made as specialized to you as possible.
Taking into consideration the average monthly rent in your area, and how many no co-broke commissions you typically score how much can you really earn in rental commissions throughout the year? Are there any real estate trends you’re following that might mean that the average rent in your area migrates up or slows down? The better you know these numbers, the more accurate you can make your earning calculator.
Remember— all Rental Beast approved listings have no co-brokes attached. That means that you get to keep all the available commission from rental listings, and rentals become even more profitable! And, with 80% visibility, you’ll be able to see all the listings in your area. This way, if you’re feeling a little bit unsure about the technicalities of your market, you’re well on your way to becoming a local expert!
3. Make Daily, Weekly, and Monthly Goals
Staying on track is the most important thing, so make everything modular and ensure every activity stays on your radar. Monitor all the leads you get, how many times the leads become clients, and how many clients you’re able to match with a great apartment. Write down your numbers, and, if you’ve realized that one week you’ve fallen behind you anticipated goals (or surpassed them!), make sure you adjust your daily, weekly, and monthly goals to reflect these changes.
4. Stay Quantitative (and a bit Qualitative)
Make sure that you remember that it can also be useful to remind yourself why you’re in the business of real estate in the first place! Following the 2020 rental real estate commission calculator means that you’ll stay quantitative and make sure you’ll keep yourself accountable to tangible goals. However, it could be helpful to think more qualitatively, too. What are the bigger goals that you set yourself with real estate? Was it to purchase something you’ve been saving up for, like a great vacation? Was it to attain a personal goal, like personal growth or increased confidence?
It’s no secret that it’s tough to be a real estate agent. According to NAR, a whooping 87% of new real estate agents leave the industry after five years, leaving only a measly 13% agents staying for the long haul. There’s a lot of reasons why the real estate industry is so tough, but make sure that, no matter what life (or the market!) Throws at you, you remember the bigger picture!
5. Re-evaluate Your Lead Generation Methods
We know just how important it is to you that you can get leads that can be turned into clients. After all, leads are the lifeblood of all real estate agents. However, the best agents know that leads don’t stumble into their inboxes. Make sure you’re doing all you can to produce a lead generation strategy that works. The beginning of 2020 is a great time to step back and think critically about the methods you use to generate leads. What’s working? What’s not working so well? How are you handling social media and growing your sphere of influence. If you’re feeling a little bit lost, check out our series on social media:
Here’s another way you can supercharge your success in 2020. Consider getting yourself a Rental Beast subscription. To learn more about the Rental Beast platform or to request a no-obligation demo visit Rental Beast for Real Estate Agents.