Although rare in the Rental Property Industry, there still remains a sales pitch to seduce Landlords into signing an EXCLUSIVE RIGHT-TO-RENT contract.
How many other professional service industries require a compensation guarantee without assurance of excellent performance? None. That’s not to say you should hire as many Agents as possible to compete for your business… This may create more problems ahead. It simply means that if you are engaging with a Rental Agency you should be cautious of signing an Exclusive Agreement that prevents you to use other resources in the event your objectives are not being met.
Here’s 6 reasons why…
1. Why trust an Agency that doesn’t trust you?
Any service provider who is committed to being a true advocate of your objectives should lead with value while trusting that fair compensation will follow. Agencies with this mindset have the confidence and desire to prove their worth, trusting that you will reward their efforts, rather than relying on a restrictive legal contract to protect their investment of time. Conversely, Agencies that claim to require an Exclusive Contract may simply be implying they are insecure in an open market place.
2. How can you ever be certain the Best Service is being provided?
When signing an exclusive contract, you are electing to remove any opportunity to compare alternative resources. Not all Rental Agencies are the same and to ensure best results it’s smart to consider working with at least two operations to determine what quality service and performance looks like. Essentially a thoroughbred is best discovered a competitive environment. Betting on the oldest horse on the track doesn’t always produce the best results.
3. Whose Interests are being Safeguarded?
Best outcomes are derived from a free and open marketplace. Placing restrictions on who you work with simply removes the element of competition. An Exclusive Contract provides little to no guarantee that your ultimate objectives will be met while comforting the service provider that alternative results will not be engaged without recourse.
4. Can you afford extra risk?
By signing an exclusive agreement you are committing yourself to work with someone from inception to completion with no guarantee of good service. Your property is already in a state of unrest, which correlates to risk. Why add additional risks by pigeonholing yourself into what might not be a perfect fit? Moreover, consider the scenario in which your Rental Agency isn’t willing to mutually rescind the agreement. Should this happen, you’ll be hard pressed to find another Agent who will even talk to you, thereby forcing you to handle the process on your own.
Is the time, energy, and risk worth it?
5. Would you rather have a long-term relationship based on performance?
In an ever complicated world, people need service providers that are committed to building lasting relationships based on trust and performance. This is the next generation of the service model, wherein an Agency strives to be a long-term partner rather than someone who simply assists with a one-time transaction. This shift away from the traditional real estate model means that Agents are beginning to function like other professional service verticals, operating as teams where dedicated professionals treat each relationship as an ongoing consulting engagement.
6. Would you like to be penalized for Poor Performance?
What if you decide to work outside of the contract to accomplish your objectives? If your exclusive representation doesn’t work out as intended, that last thing you probably want to do is put good money after bad. This is exactly what could happen if your exclusive agreement goes south. On the other hand, Agents who are in the business of client dedication as Consultants would certainly not turn around and sue. Furthermore, they would not restrict you from achieving the best results available. To safeguard yourself form the risk of penalty or litigation, your best bet is to simply refuse signing an exclusive contract.
Property owners and Landlords hire rental specialists for a reason. An adept, forward thinking Agency adds real value by making the rental process smoother, more cost-effective, and as minimally disruptive to the client as possible. However, there are still a few dinosaurs out there who haven’t adopted a “service guarantee” value proposition, and will attempt to seduce you into an exclusive contract.
Request Non-Exclusive, the risks are much greater than the perceived benefits of the restrictive Exclusive Contract.
We at Residential Renters embrace the free open market and our growth is inspired by building trusting relationships based on sheer performance. We vow to keep your objectives first of mind!