Build a rental business plan for any income goal

Every successful agent starts off somewhere. And many of them start off working with rentals.

Whether you're a new agent looking to establish yourself, an experienced agent seeking to diversify your income streams, or someone considering specialization in leasing, a rental business can be designed to meet virtually any income target.

Building a sustainable rental business requires more than just taking on occasional transactions. It demands a deliberate approach—understanding your market, creating systems, and positioning yourself as a rental expert. The benefit? A more predictable income stream that can weather market fluctuations and build long-term wealth.

"The old saying is, there's only 10% of brokers that make 90% of the money,” says Ray Amouzandeh, a successful San Francisco residential leasing agent and RentSpree user explains “And that's very true. You have to stick with it for many years in sales before you actually become that 10% that makes 90% of that big money in this field."

The sooner you can get started, the better. Let’s take a look at how you can get there, step by step. 

Analyze your local rental market 

Before developing your rental business strategy, you need to understand the specific dynamics of your local market to identify opportunities and establish realistic expectations.

Research rental demand in your city

The renter-to-owner ratio in your market significantly impacts your business potential. According to data from RentCafe, over 44.5 million households in the U.S. are renter-occupied, amounting to 35% of all households. However, this percentage varies dramatically by location, with some cities having a significant majority of renters. In major urban centers, renters significantly outnumber homeowners. Manhattan, for instance, has a 75% renter population. Miami follows closely with 69% renters, while Boston (65%), Los Angeles (64%), and San Francisco (62%) all maintain renter majorities well above the national average. Even in cities like Austin and Chicago, renters make up more than half the population at 56% and 54% respectively.

When evaluating your local market, look for areas with high rental demand, low vacancy rates, and growing populations to focus your business development efforts.

Understand seasonal patterns

The rental market follows predictable seasonal patterns that directly impact your business planning and income projections. May through August typically constitutes the peak rental season across most markets, with rental activity reaching its highest levels in July and August.

This seasonal surge is driven by multiple factors: families prefer moving during summer to avoid disrupting the school year, college students and recent graduates search for housing before fall term begins, and the weather is more conducive to moving. Understanding these patterns allows you to:

• Ramp up marketing efforts during spring to capture the summer rush
• Plan for potentially slower periods during winter months
• Develop strategies to maintain income during off-peak seasons
• Structure lease terms to ensure renewals occur during peak demand periods

You can use these predictable patterns to your advantage, using slower periods for business development and preparation while maximizing transactions during high-demand months.

Determine rental commission structures in your market

Commission structures vary between markets, and understanding local norms is essential for pricing your services appropriately. Rental commissions typically fall into these categories:

• Percentage-based commissions: Ranging from 2.5% to 15% of the annual rent or total lease value, depending on the market
• Flat fee models: Often equivalent to one month's rent
• Hybrid structures: Combining elements of both models, sometimes with additional fees for premium services

Who pays the commission also varies by location. In some markets, landlords typically cover the agent's fee, while in others, tenants are responsible for it. For instance, in markets like Boston and New York, tenants often pay part or all of the agent's commission, while in markets like San Francisco, landlords generally cover these costs.

Map your income targets to transaction volume

Before developing your strategy, you need to understand the relationship between your income goals and the necessary transaction volume:

Note: This table assumes an average commission of $1,000 per transaction. Adjust based on your market's typical commission structure.

Use this formula to determine your specific transaction requirements:

Monthly Transactions Needed = Monthly Income Goal ÷ Average Commission Per Transaction

For example:

• If your monthly income goal is $5,000 and your average rental commission is $800:
• Monthly Transactions Needed = $5,000 ÷ $800 = 6.25 transactions

Adjust based on your market's average commission structure and your efficiency in handling rental transactions.

Create your rental business model

With market insights gathered, it's time to design a rental business model that aligns with your income goals and plays to your strengths.

Choose your business approach

Rental businesses can be structured in multiple ways to match your goals, resources, and market opportunities:

1. Landlord-focused model: This approach positions you as a specialist in representing property owners who need assistance marketing their vacancies and finding qualified tenants.
   
   
2. Tenant-focused model: This approach prioritizes helping renters navigate competitive markets, particularly useful in high-demand rental areas or with specialized demographics like corporate relocations, traveling healthcare professionals, or international clients.
   
   
3. Mixed model: Many successful rental agents maintain flexibility, representing both landlords and tenants depending on the opportunity. This balanced approach maximizes your potential client base while allowing you to develop expertise on both sides of the transaction.
   
   
4. Specialized services: Rather than handling all aspects of the rental process, some agents focus on specific service segments like market analysis, tenant screening, virtual tours for remote clients, or lease negotiations. These specialized offerings can command premium fees while requiring less time per transaction.

Consider your market's specific needs when choosing your approach. In markets with complex regulations or high turnover rates, landlords may particularly value expert representation, while in competitive markets with low vacancy rates, tenants often need the most assistance.

Design your strategy based on income goals

Here’s how you can tailor your rental business model to your individual income goals: 

Income goal: $25,000-$50,000 (supplemental income)

Target profile: Part-time agents, new agents building their business, or established agents adding rental income 

Transaction volume: 2-4 rentals per month (25-50 annually) 

Strategy focus:

• Leverage your existing network for initial leads
• Focus on a specific neighborhood to become the local rental expert
• Utilize RentSpree for even one-off rentals to save time and provide professional service
• Allocate 5-10 hours weekly to rental-specific prospecting
• Build relationships with 3-5 reliable landlords who own multiple properties

Income goal: $50,000-$100,000 (Significant income stream)

Target profile: Full-time rental specialists or agents with a dedicated rental division 

Transaction volume: 4-8 rentals per month (50-100 annually) 

Strategy Focus:

• Expand your network beyond personal connections to targeted marketing
• Develop specialized knowledge in high-turnover submarkets (university areas, medical districts)
• Implement a comprehensive CRM system for tracking rental clients and follow-up cycles
• Build a digital marketing system with neighborhood guides and rental resources
• Expand your landlord network to 30-50 relationships in your target area
• Scale your use of RentSpree tools as your transaction volume grows

Income Goal: $100,000+ (primary business focus)

Target profile: High-volume rental specialists or team leaders with rental division 

Transaction volume: 8+ rentals per month (100+ annually) 

Strategy focus:

• Scale operations with team members dedicated to different parts of the rental process
• Develop a specialized market niche (luxury rentals, corporate relocations, etc.)
• Create a comprehensive digital presence with rental-focused content marketing
• Maintain an extensive database of 50-75 active landlord relationships
• Maximize efficiency with RentSpree's complete suite of tools for your entire portfolio
• Develop conversion systems to transition high-income renters to buyers within 1-3 years

Generate consistent rental leads

For any rental business to thrive, you need a reliable lead generation system that produces opportunities in both peak and off-peak seasons. Let's explore practical strategies to build your rental lead pipeline.

Leverage your existing network

The fastest path to your first rental transactions is through people who already know and trust you. Consider these approaches:

1. Create a rental-specific communication plan for your sphere of influence, letting them know you specialize in rentals and explaining the value you provide to both tenants and landlords.
   
   
2. Identify life transitions in your network that might trigger rental needs—college graduation, job changes, downsizing, or relationship changes often necessitate temporary housing.
   
   
3. Partner with complementary professionals like mortgage brokers who encounter clients who don't qualify for purchases yet, divorce attorneys whose clients need temporary housing, or corporate HR departments handling relocations.

The key is making your rental expertise known within your existing network, then providing exceptional service that generates referrals.

Develop a systematic prospecting approach 

Consistent lead generation requires a disciplined approach to prospecting that becomes part of your daily routine:

1. Block dedicated prospecting time in your schedule—ideally during morning hours when you're most likely to reach people and your energy is highest.
   
   
2. Create a consistent follow-up system for potential clients, recognizing that rental decisions often happen quickly but can also occur months after initial contact.
   
   
3. Track your lead sources to identify which prospecting activities yield the best results, allowing you to refine your approach over time.
   
   
4. Combine both digital and traditional methods including phone calls, email campaigns, social media outreach, and in-person networking.
   
   
5. Create educational resources explaining local rental regulations, tenant rights, application processes, and market trends.
   
   
6. Share market data and insights that help landlords optimize their rental pricing and marketing strategies.

The way to work at it is to take every opportunity, as small as it might be, and build upon it.

Create your 90-day action plan

Whatever your income goal, success requires translating intentions into specific actions. Create a 90-day plan with these components:

Week 1-2: Assessment & foundation

• Calculate your transaction target based on income goals
• Research local rental commissions and market patterns
• Set up RentSpree account for streamlined tenant screening
• Create standardized tenant qualification criteria

Week 3-4: System implementation

• Develop your lead tracking system
• Create rental-specific marketing materials
• Establish your digital application and screening workflow
• Identify 20 contacts for initial rental business conversations

Week 5-8: Lead generation launch

• Contact 5 people daily about your rental services
• Prospect for 2-3 hours daily during peak rental season
• Create neighborhood guides for top 3 rental areas
• Begin promoting your rental expertise on social media

Week 9-12: Refinement & scaling

• Analyze results from initial lead generation efforts
• Adjust approach based on most productive activities
• Set targets for increasing transaction volume 
• Develop your first quarterly business review

Get started today

Building a successful rental business requires commitment, systems, and a long-term perspective. While the immediate commission on a rental transaction may be smaller than a sale, the cumulative value of recurring transactions, referrals, and eventual sales conversions creates sustainable income that can weather market fluctuations.

Sometimes, new agents get their license and they think they're going to get that first million-dollar listing. That’s what they might see on TV. But the reality is, real estate is not that easy. You have to work at it.

The rental market offers unique opportunities for both new and experienced agents. For those just starting their real estate careers, rentals provide a faster path to initial transactions and income while building essential skills. For established agents, a rental division creates diversification that stabilizes income during market shifts while expanding their referral network and future sales opportunities.

Whatever your situation, start where you are—with one rental transaction, one system, one relationship at a time. With consistent effort and the strategic approach outlined in this guide, you can build a rental business that meets your income goals while creating long-term wealth through enduring client relationships.

"If you work on your business, you make a living,” says Amouzandeh. “If you work on yourself, you make a killing.”

Thousands of agents are already using rentals to grow their business. Why not you? With RentSpree Academy, you’ll learn how to market, screen, lease, and get paid. All while building a long-term plan that fits your income goals. It’s free, fast, and built just for agents. Take a free course at RentSpree Academy.