Although becoming less common in the Rental Property Industry, there still remains a sales pitch to persuade Landlords into signing an EXCLUSIVE RIGHT-TO-RENT contract.
Before entering into an Exclusive Right to Rent agreement with your leasing agency or property manager, you may want to consider, and be cautious of, the following:
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. Quality is best achieved through quantity. It is virtually impossible to determine quality when there is nothing to size up against.
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 relations would find it in their best interest to cooperate, not compete. Furthermore, they would be wise to 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 or have the terms modified to support YOUR interests.
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 those that have yet adopted a “service guarantee” value proposition, and will attempt to persuade you into an exclusive contract.
Request Non-Exclusive or Modified Exclusive Contract, 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 performance and best practices. We vow to keep your objectives first of mind!