If you ever deal with commercial property in your career as a real estate agent, you are likely to come across a property owner looking to sell a building that already has tenants. Having tenants can be a selling point for a rental property since the new owner will start with passive income from rent and will not have to worry about finding occupants in the near future.

However, those tenants are in a delicate position, and it is important that you encourage your client to treat them with respect during the transaction, especially if the property for sale is a single family home rental. While your client might see the property as his or hers to sell, it is vital to keep in mind that the house is also home for the tenants. Aside from simple courtesy, the law also protects certain rights of renters during a property sale.

Respecting the tenants helps everyone

The cooperation of your client’s tenants could make or break the sale of the property. If your client neglects them or disrespects them during the process, you may find it difficult to seal the deal. After all, what incentive do poorly treated tenants have to help a landlord sell their home? Easing tenants through the process is not difficult if you keep in mind the following rights most renters have:

• To receive notice before you show the property to perspective buyers, usually 24 to 48 hours
• To have showings scheduled at reasonable times and convenient days
• To expect repairs and maintenance to continue without disturbing their peaceful existence
• To have the first refusal for purchasing the property before other buyers are considered

If potential buyers stipulate that the tenants must vacate, you are dealing with another set of issues. Your client must follow state law for giving the occupants notice to vacate, and some areas require landlords to pay a relocation fee in addition to offering a lease payout. However, if the tenants choose to remain to the end of their lease, that is their right. New owners will not be allowed to change the terms of the existing lease, such as refusing to allow pets.

In the long run, communication, respect, and monetary incentives are the universal motivators for obtaining the cooperation of tenants and improving the chances that, if necessary, they will leave on positive terms with the unit in good condition.

You are not alone if you are looking for a side hustle to help you reach your financial goals. However, you also want part-time work that is interesting and offers potential for impressive earnings and perhaps advancement. Real estate checks those boxes and more, and yes, you can work in real estate as a part-time job. You may have to make some adjustments, but it is a valid option.

Of course, you have to expect that your earnings as a part-time agent will not be as high as those of agents who work full-time. Additionally, you will still be spending money on operating costs, such as marketing, lead generators, cellphone, gas for your car and other expenses. You will be smart to obtain as much information and knowledge as you can before starting out on your part-time venture.

How to get started

Ask yourself why you prefer to work part-time in real estate instead of jumping in with both feet. Many do so because they are concerned about the risk of working full-time in a job in which pay is solely based on commissions from sales. Others are not looking for any kind of full-time work, and still others love the idea of having a flexible, part-time job with potential for great wages.

If you are considering real estate as a part-time gig, you will still need to obtain your license to be an agent in your state. You will also have to find a broker who is willing to take you in on a part-time basis. Additionally, the following are common steps to take when entering real estate part-time:

• Make sure your full-time boss is willing to accommodate your second job.
• Set aside time to build a business plan and work schedule.
• Brainstorm ways to generate clients.
• Network with other real estate professionals, both full- and part-time, to find mentors and advisors.
• Create a budget that includes your living expenses and business costs.

Always allow time in your week for resting, which is not easy if you are working two jobs. Real estate can be tiring and requires a great deal of energy and enthusiasm. Therefore, including sleep, leisure and self-care in your schedule will help you stay at the top of your game.

Stick with it

As a part-time real estate agent, there is a chance you will run into some frustration as you compete for clients with full-time agents. You should not let this deter you. Instead, continue to gain experience and grow in your knowledge of your business and the area in which you work. You might even fall in love with the gig and decide to go full time.

The recent health scare made things difficult for real estate agents since many potential clients were nervous about leaving home, much less selling their homes and moving. Nevertheless, you do not have to let the fierce competition in the real estate world scare you away from pursuing your dreams of becoming a top-notch, in-demand agent.

Most successful agents will admit that it is not luck alone that yields success in this fast-paced industry, and many have certain habits in common that keep them moving forward, building their businesses and accomplishing their goals.

Start the day right

Not only in real estate but in any business, the highest achievers typically rise early and have a morning routine they stick with. This should include self-care, like eating a good breakfast and working out. Morning is the ideal time to list your tasks for the day and prioritize them. Certain items on your list might seem trivial, but it is critical that you block out time each day to deal with the following:

• Checking and responding to emails
• Returning phone calls as soon as possible
• Creating and sending marketing emails to increase your sphere of influence
• Networking with other agents and potential client pools
• Expanding your community involvement
• Learning more about your area of expertise

Having intimate knowledge of local neighborhoods, activities, schools, community events and future plans allows you to provide this information to your clients, and it’s information beyond what they can learn through a Google search. It also helps you build a reputation as an agent who loves and is invested in your community, which is important to many clients who are looking for a forever home.

Don’t be satisfied

Successful real estate agents are not content unless they continue to learn about their industry. This includes studying the real estate market and trends, but it also means ongoing education in your field. To maintain your license, you will have to take continuing education courses, and you should make the most of these to broaden your scope and remain competitive.

Additionally, you may look for other opportunities to learn, such as college courses in accounting, marketing or business. Learning more about today’s technology is always beneficial, and the most successful agents usually have a high level of tech savvy. This can give you an edge in your marketing, data analysis and communication with your clients. Adding to your knowledge a little each day can keep you leaps and bounds ahead of the competition.

Naturally, when your clients put their home on the market, they want the very best chances of selling it quickly and getting a good price. This means making their home as appealing as possible and seeing it through the eyes of a potential buyer. You probably urge your selling clients to de-clutter their homes, clean every room thoroughly and rearrange the furniture to create a more natural flow. However, some sellers might decide to go a step further.

If you have clients in an older home who are considering making major renovations before putting it on the market, you will want to slow them down before they make a costly mistake. While some repairs and renovations can certainly add value and appeal to a home, others can be a waste of money and may even cost your client a sale.

A smarter way to go

Rebuilding, replacing and renovating could seem like good ideas to your clients, particularly if their home is a number of years old. It is common for home sellers to read online or see on TV that certain upgrades will add more value to their home and thereby fetch a higher price. This isn’t always the case, and there are often less expensive ways to draw the attention of buyers.

For example, clients with a garage may be tempted to convert it into an additional bedroom, home office or expanded living space. This often involves finding contractors, obtaining permits, and adding costly electrical, HVAC, and plumbing elements. Your client will most certainly delay a timely sale and may spend more than they will recoup at closing. More practical changes can include installing an organization system in the garage and replacing the garage door. The following are other examples of smarter options to suggest:

• Deep cleaning the existing flooring instead of replacing it with new flooring that adds little resale value and that buyers may not like.
• Upgrading light fixtures and professionally cleaning windows instead of adding a sunroom to allow more light into the rooms.
• Purchasing a home warranty to cover appliances that are still in good working condition instead of replacing them entirely.

Buyers looking at existing homes likely already have in mind the changes they want to make, whether it be repainting the walls, replacing the flooring or upgrading kitchen appliances. Your clients’ major projects could end up doing little to make the sale and might even be the first things a new owner removes and replaces after closing day.

After last summer’s tragic condo collapse in a neighboring state, your clients may be reluctant to consider buying a condo, especially one in a building that is not a new construction. This is understandable since most individuals may have little knowledge or experience that would help them identify whether a building is safe or has dangerous defects.

Finding your clients a condo that meets their needs and is safe to inhabit may now require some extra effort, and you will want to have the tools to guide them in doing their own investigations before deciding on purchasing a unit. Often this means knowing the right questions to ask and who is responsible for the building records and maintenance.

Watch out for these signs

Every state has minimum standards for safety in high-rise residential buildings such as condominiums. This includes codes for fire safety, decks and balconies, elevators and stairs, and the overall structural soundness of a building. Sustaining those standards requires periodic inspections by trained professionals and a schedule of repairs and maintenance to ensure the building remains sound. Depending on the location of the building and the materials with which it is constructed, deterioration is a possibility, so it is wise to be alert for any of the following red flags:

• Cracks in the outer walls or foundation, especially cracks that are particularly wide or that travel at an angle
• Crumbling concrete, such as pillar or supporting posts or balconies
• Exposed metal or rebar that concrete once covered
• Corrosion on exposed metal
• Windows or doors that no longer close correctly
• Significant cracks in floors, walls or ceilings of a unit
• Wallpaper with unexplained wrinkling
• Musty odors in units

Perhaps the most important red flag is when a condo association does not have any cash in reserve and has not kept up with routine repairs. Your client may quickly find his or her fees rising after purchasing a unit but perhaps too late to repair life-threatening damage.

Your clients’ homework

Clients who are interested in purchasing a condo should do their due diligence. This means obtaining copies of association meeting minutes to learn of the most common complaints and unresolved safety issues. Have residents complained about concrete falling on their vehicles in the underground garage? Are there persistent leaks throughout the building? These are issues that should raise concerns.

The association should also provide a copy of the financial report, which can reveal a lot about the upkeep of the building. Finally, your clients will want to hire a skilled inspector who has experience in condo safety.

One of the most stressful parts of selling a home may be when the buyers order a home inspection. Buyers will hire a trained professional to walk through your client’s home, check every appliance, and examine the attic, basement, and crawl space. For hours, the inspector will scrutinize the home and then prepare a thorough report of his or her findings. It is this inspection that could bring the transaction to a screeching halt.

No matter how new your seller’s home is, it is likely the inspection will uncover some defects, probably some the owners did not expect. These might be quick and easy repairs, or they could be deal breakers. However, rather than stressing about what a home inspection might reveal, you can encourage the owners to prepare their home to increase the chances of getting a more positive evaluation from an inspector.

Expecting an inspection

You can urge the owners to gather receipts and reports for any service, repair or replacement they have done on the house. Organizing copies of these for the inspector can be helpful, but an inspector is not going to be interested in any cosmetic changes, such as painting the living room. The main concerns involve the structure of the home, its systems, water damage and pest infestations. To prepare for inspection day, you can suggest that the owners take the following steps:

• Clear any clutter that will prevent an inspector from accessing the attic, crawl space, basement or other areas.
• Unlock rooms that contain a water heater, furnace, electrical panel or other appliances, and make sure those rooms have adequate lighting.
• Check for clogs in the plumbing.
• Do seasonal maintenance, such as clearing gutters, trimming trees away from the house and replacing HVAC filters, smoke detector batteries, and light bulbs.
• Make sure the chimneys, flues and gas lines are clear of debris and have adequate caps.
• Arrange for someone to care for their pets so they are out of the way during the inspection.

Some homeowners even hire an inspector of their own before they list the home. This way, they do not end up blindsided by defects that could affect the outcome of the deal. You may wish to suggest this to a client who has an older home. However, whatever you or your client learn from a pre-listing inspection, you must disclose to potential buyers. If your clients opts out of a pre-listing inspection, you should be prepared to negotiate in case any defects surface during the buyer’s inspection.

Television and movies have a way of presenting certain jobs in an unfavorable light. If you are a real estate agent or are working to obtain your agent license, you may cringe when you see an inaccurate portrayal of a real estate agent on your favorite show. Often these characters come off as bumbling, dishonest or egotistical, more concerned about their own images than their clients’ needs.

Hopefully, not everyone believes these stereotypes despite the way Hollywood portrays real estate agents. Unfortunately, many potential clients still have some misperceptions of the real estate industry and what it is like working with a real estate agent. You may have some control over the perpetuation of these myths if you can understand how your clients might look at you.

Setting the record straight

Misunderstandings about working with a real estate agent can cause some buyers or sellers to try to handle a complex real estate transaction on their own. This could result in frustration and perhaps even legal complications when buyers and sellers do not understand the process or their responsibilities to each other. If you come across potential clients who are reluctant to work with a real estate agent, it might be because they believe any of the following myths:

• You are trying to get rich from the sale of their home.
• Once they sign a contract with you, they have no option but to work with you to the end of the transaction.
• They don’t need an agent to buy a home because they can just use the seller’s agent.
• A random choice of real estate agents will have the same results as shopping around for a good fit.
• A homeowner who is selling without an agent will not work with them if they have a real estate agent.

Of course, your education and experience tell you how you will likely split your commission several ways and that you are usually willing to release a dissatisfied client from an agent contract. You might have to explain to buyers that a seller’s agent has a legal duty to represent the seller’s interests and that it is a wise idea to speak with several agents before deciding which one is a good fit. Buyers may even be pleasantly surprised when you offer to show them an FSBO home.

Your positive attitude and focus on the needs of the client can expel some of the stereotypes the public has about real estate agents. Additionally, your skills as an agent can go a long way in putting to rest these and other myths about the real estate world.

There are two kinds of real estate agents: those who work with investors and those who do not. Whether you have encountered flippers, buy-and-hold investors or the occasional wholesaler, if you had a bad experience, you might not want to work with investors ever again. However, with the right strategy, many real estate agents have discovered that the benefits of being investor-friendly can outweigh the frustrations.

Dealing with real estate investors can be quite profitable, but you do have to be ready to do some work and to be patient. It’s true that many would-be investors lose interest before they make their first purchase, but surveys show that there are between seven and 28 active investors for every one real estate agent in the country. If you can learn to understand what an investor is looking for, you may be able to tap into this lucrative market.

Expanding your business with investors

Unlike your average home transaction, your investor clients are not necessarily looking for family-friendly neighborhoods and granite countertops. They are looking for passive cash flow and motivated sellers. They want a once-in-a-lifetime deal, and they want it fast. Therefore, you will have to have a system that is driven less by the emotion of the sale than by the income potential. Other important things to know about investors in general include:

• Investors often have niches, such as multifamily properties, shopping centers, office complexes or multi-use buildings, so you will want to learn about these areas.
• Many investors make multiple transactions each year, and some flippers may turn dozens of properties each month.
• They typically have a wide network in the community, which might mean valuable referrals coming your way.
• They understand the real estate process and usually need less hand-holding.
• Buy-and-hold investors need properties that will provide positive cash flow.
• Buying investment properties often requires creative financing, and it will be important to know up front your clients’ plans for financing the deal.
• Some investors use the technique of lowballing dozens of sellers on the off-chance that one will accept the deal, so you should know your boundaries in this area.

Since investment is such a complex area of real estate, you might want to take advantage of any resources available to prepare yourself for working in this niche. Additionally, as distasteful as it may be to work with new investors, your guidance may provide the information they need to make a successful deal, which can be the start of a mutually beneficial relationship.

Undoubtedly, you have encouraged your clients to prep their homes for maximum appeal, including decluttering, cleaning and perhaps even staging the rooms. You want potential buyers to see the home at its best, highlighting the most attractive features. However, buyers may have already formed a negative opinion before they even step inside the house.

First impressions begin long before a house hunter schedules a tour. Many potential buyers study online photos, take digital tours and even drive through the neighborhood before scheduling an in-person look with a real estate agent. The appearance of the exterior of a house, those features visible from the curb, might be enough to scare off a potential buyer no matter how pristine the interior. This is why your seller clients should not overlook the power of curb appeal.

Love at first sight

Before their agents open the front door, potential buyers are already evaluating the property. They are taking note of the lawn, the landscaping and the façade of the house, perhaps down to the doorknobs and hinges. Few things can evoke a feeling of exhaustion faster than an unkempt lawn, overgrown gardens or the weathered exterior of a home.

To a buyer, these might be a sign that they will be spending long weekends trying to keep up with the property instead of enjoying it. You want to make sure your clients’ property does not send this message.

Creating appeal

Fortunately, your clients can take some simple steps to build curb appeal that can draw in potential buyers, for example:

• Power washing the siding
• Washing the windows inside and out
• Power washing the sidewalks and perhaps resealing the driveway
• Mowing and trimming the lawn and keeping it trim while the house is on the market
• Weeding flowerbeds and pruning trees and shrubs
• Raking and disposing of yard debris
• Removing old furniture, worn decorations and other clutter
• Replacing or reimagining old light fixtures

If your clients are willing to spend, they can take their curb appeal to the next level. For example, hiring a professional landscaper could cost several thousand dollars, depending on the size of the property. Your client may decide it is worth it to contract a painter to redo the home’s exterior. Replacing a dilapidated front porch, expanding the deck or installing a pool are also examples of high-end ways to improve curb appeal.

However, it is not always necessary to take these drastic steps. Many buyers simply want to see a home that looks loved and cared for inside and out.

Home buyers these days have many options for purchasing a home even if they are not financially well off. This is especially good news for those clients who may not qualify for a conventional loan because of their income level or low credit scores. For these buyers, the government offers affordable homes through the Federal Housing Administration in cooperation with the Department of Housing and Urban Development.

As a real estate broker, you are likely to have some clients who are interested in HUD homes since they are often inexpensive and can be a real bargain. Therefore, it’s a good idea for you to learn about this program because the process for purchasing a HUD home can be complex, and those brokers working with HUD buyers must be registered with the agency.

What is a HUD home?

You will not have access to HUD listings on the Multiple Listing Service. Instead, they are posted on HUD’s website. HUD homes are typically foreclosures that the FHA has seized and is reselling to recoup its losses. For this reason, HUD homes are sold as-is with no repairs or upgrades.

While the government appraises them to price them fairly, it is possible that a property your client is interested in buying could need some repairs. You will want to encourage them to seek professional inspections and advise them when repairs may be more than they can handle.

How can my client buy a HUD home?

Your clients should obtain pre-approval for financing just as with a conventional sale. You can direct your clients to special programs that assist buyers with closing costs, home repairs and other homebuying expenses. Those who intend to purchase a HUD property as a primary residence receive first priority, but a property that does not sell during this exclusive sales period is open to investors.

Additionally, any home that remains unsold for longer than 180 days becomes a $1 Home, meaning HUD offers it for sale for $1 in addition to closing costs. This can be a dream come true for home buyers, but $1 homes typically have a low market value to begin with.

What is my role?

HUD properties come with complicated purchase requirements and sometimes carry risks for your clients. If you are interested in working with HUD properties, you will need to obtain the appropriate credentials and learn how to guide your clients through the maze of government regulations. In the end, you may play an important role in bringing home ownership to clients who might otherwise be ineligible.