In
the
constantly
evolving

real
estate
landscape,
Multiple
Listing
Services
(MLSs)
today
face
a
significant
challenge:
agent
attrition.
As
interest
rates
have
remained
comparatively
high
and
property
prices
have
soared,
the
for-sale
market
has
stalled,
resulting
in
many
agents
now
selling
only
a
few
properties
a
year.
Nearly
half
(approximately
49
percent)
of
about
2,000
real
estate

agents
surveyed
by
the
Consumer
Federation
of
America
sold
fewer
than
two
homes
last
year.
Plus,
as
a
result
of
the
current
lawsuits,
starting
in
August,
real
estate
databases
won’t
be
including
offers
of
compensation
for
agents
representing
the
buyer
in
a
transaction.
That
means,
these
agents
aren’t
guaranteed
a
percentage
of
the
seller’s
proceeds.
By
some
estimates,
this
could
result
in
a
loss
of
as
much
as
30
percent
of
commissions
revenue
in
the
U.S.

The
challenge
of
agent
attrition

All
these
developments
have
had
a
significant
effect
on
the
stability
and
growth
of
the
real
estate
industry.
While
during
the
pandemic
the
number
of
real
estate
agents
in
the
U.S.
increased
notably,
it
has
dropped
significantly
since
then.
The
National
Association
of
Realtors
(NAR)
currently
has
about
1.5
million
agents
registered,
down
more
than
100,000
from
2022,
according
to
industry
research.

For

MLSs,
the
repercussions
of
agent
attrition
can
be
quite
profound.
A
shrinking
member
base
impacts
revenue
from
membership
fees,
reduces
the
pool
of
listings,
and
diminishes
the
collaborative
network
that
is
crucial
for
a
thriving
MLS.
Therefore,
finding
ways
to
retain
agents
and
provide
them
with
sustainable
income
opportunities
is
paramount.

The
rental
market
is
rife
with
opportunity 

Amidst
all
of
this
uncertainty,
the
rental
market
can
present
a
significant
opportunity
for
MLSs
to
address
agent
attrition.
Traditionally,
many
real
estate
agents
have
focused
on
sales,
often
overlooking
rentals.
However,
the
rental
market
is
robust
and
growing,
offering
a
steady
demand
for
rental
space,
especially
in
urban
areas
and
among
younger
demographics
who
are
delaying
homeownership.
While
the
rental
market
has
softened
year
over
year
due
to
an
increasing
supply
of
new
apartments,
the
segment
is
still
highly
competitive
and
active.
In
2024,
on
average
seven
renters
are
competing
for
one
apartment
(in
some
high-demand
markets
such
as
Miami
that
doubles
to
14),
as
opposed
to
eight
last
year,
according
to
research
by
RentCafe.
The
average
monthly
rent
in
the
U.S.
currently
stands
at
$1,517,
a
0.6
percent
increase
over
last
year. 

By
integrating
rentals
into
their
offerings,
MLSs
can
help
agents
diversify
their
income
streams.
Rentals
provide
a
quicker
turnaround
compared
to
sales,
enabling
agents
to
generate
consistent
revenue.
This
can
be
particularly
beneficial
during
slow
sales
periods,
helping
agents
maintain
financial
stability
while
also
serving
as
a
lead
generation
tool
for
when
the
for-sale
market
turns
more
favorable
again.

Enhancing
MLSs
with
rental
support

To
effectively
support
rentals,
MLSs
can
implement
several
strategies:

1. 
   Expand
   Listing
   Databases:
   Incorporating
   
   rental
   listings
   into
   the
   MLS
   database
   can
   attract
   a
   broader
   audience
   and
   provide
   agents
   with
   more
   opportunities.
   Ensuring
   these
   listings
   are
   comprehensive
   and
   up-to-date
   will
   enhance
   the
   value
   of
   the
   MLS
   to
   its
   members.
2. 
   Offer
   Specialized
   Training:
   Providing
   training
   programs
   focused
   on
   rental
   transactions
   can
   equip
   agents
   with
   the
   necessary
   skills
   and
   knowledge.
   This
   includes
   understanding
   rental
   market
   trends,
   legal
   requirements,
   and
   best
   practices
   for
   property
   management.
3. 
   Provide
   Rental-Specific
   Tools:
   MLSs
   can
   invest
   in
   tools
   and
   technologies
   that
   streamline
   rental
   processes.
   Features
   such
   as
   online
   rental
   applications,
   credit
   screening
   services,
   and
   digital
   lease
   signing
   can
   make
   it
   easier
   for
   agents
   to
   manage
   rental
   transactions
   efficiently.

Benefits
for
agents
and
MLSs

Supporting
rentals
offers
a
dual
benefit:
it
provides
agents
with
a
stable
income
source
as
well
as
a
lead
generation
tool,
and
it
strengthens
the
MLS.
Agents
who
can
rely
on
rental
commissions
are
more
likely
to
stay
in
the
industry,
reducing
attrition
rates.

Furthermore,
embracing
rentals
aligns
MLSs
with
current
market
trends.
As
remote
work
becomes
ever
more
prevalent
and
lifestyles
change,
the
demand
for
flexible
living
arrangements
is
expected
to
grow.
By
positioning
themselves
as
leaders
in
the
rental
market,
MLSs
can
stay
relevant
and
meet
the
evolving
needs
of
both
agents
and
clients.

Agent
attrition
is
a
significant
challenge
for
MLSs,
but
by
embracing
the
rental
market,
they
can
turn
this
challenge
into
an
opportunity.
Supporting
rentals
provides
a
valuable
income
stream
for
agents,
enhances
job
stability,
and
strengthens
the
overall
MLS
network.
In
a
dynamic
real
estate
environment,
diversifying
services
and
adapting
to
market
trends
are
crucial
for
long-term
success.
By
integrating
rentals
into
their
core
offerings,
MLSs
can
ultimately
help
secure
a
more
resilient
and
thriving
real
estate
community.

This
column
does
not
necessarily
reflect
the
opinion
of
HousingWire’s
editorial
department
and
its
owners.

To
contact
the
editor
responsible
for
this
piece:



[email protected]

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