A competitive housing market and affordability crisis are leading more Realtors to work with renters. A rise in rental scams, along with high interest rates facing prospective buyers, means professionals should consider investing in working relationships with renters, according to two Ottawa agents.

“We are big advocates of doing it,” says Realtor Hussein Zeineddine. He and Matt Assaf of Engel & Völkers Ottawa suggest working with renters as a way to position themselves for the future, developing connections with individuals whose needs and situations may change over time.

“Whether they are buyers or sellers, renters or landlords, we take care of them the same. Sometimes the commission is a tenth of what it could be, but our goal is to build a relationship.”

According to their data, in the first 10 months of 2023, the brokerage processed 371 rental transactions. In the same period this year, 533 transactions took place—a 44 per cent increase. Rentals in 2024 represent 27 per cent of their business’s transactions,  a sizable increase from the 10 per cent rental transactions represented before the pandemic. Zeineddine and Assaf cite a confluence of factors, including a rise in rental scams. Working with an agent and using MLS provides more security than Facebook Marketplace, Rentals.ca, or Kijiji.

Rise in renters using Realtors

“A lot of times when people reach out, they don’t know who they are reaching out to, if it’s a landlord or a scammer,” Assaf said of such sites, while MLS offers peace of mind. “Whoever is claiming to be the landlord, we have access to information. That’s the most important thing. The general public doesn’t have access to that.”

Rental scams are on the rise across the country amid an affordability crisis. In September, CBC reported that 35 people in Kitchener-Waterloo lost a collective $40,000 due to scams, which included individuals posing as an owner of a unit. Similar stories have been reported across the country, from Calgary to New Brunswick, and Ottawa to across Toronto.

Kingsley Ma, vice president of Re/Max Canada, believes renters will continue to seek out licensed agents amid a rising number of scams. 

“There’s a lot of fraud going on, and that number is increasing unfortunately, because the rental market is so competitive,” he said. “If you have a licensee, they go through an education process, and they’re associated with a company that helps guide them through the process. It adds an additional security layer.”

Ma says there are too many risks on sites like Facebook Marketplace. “Why would you trust someone who has no license, is not associated with any company, and you probably don’t know who they are?”

Realtors advocate for prospective renters 

Zeineddine and Assaf point out there’s another advantage for renters to seek out agents: they can work with landlords to get applicants at the top of the list. They argue savvy agents can help renters stand out in a competitive market involving bidding wars and nervous landlords.

“We always try to set up a virtual call with the landlord and tenant,” said Assaf. ” A lot of times the landlord looks at the application, they may see a pet listed, and they may say ‘next.’ If you’re working with the tenant, you know they’re good, so landlords may give them a different look than just reading their name. If they can see a face, it can build rapport, and it helps the tenant.”

By using MLS, both renters and landlords can feel more comfortable. And developing a relationship with renters can lead to more transactions in the future.

“It is a good idea to work with renters,” said Ma. “Especially with younger renters, at some point in their lives, things change and they might consider buying a home. Ultimately you will get an opportunity to get that transaction when the time is right.”

Ma adds, “It’s a referral business at the end of the day.”

More time and energy, smaller paycheque 

Zeineddine and Assaf both admit, however, that conducting rental transactions can involve more time and energy, with a potential for more frequent viewings and an increase in paperwork. While buyers are more picky, renters may want to see as many places as possible. Working with rental transactions also calls for understanding what can be complex rules and regulations governing landlord and tenant relationships.

“I think the percentage of Realtors who could represent a tenant properly is quite high, but I don’t think many agents are going into that avenue of business, ” said Zeineddine. “They are focused on selling properties.

“The rental market is an up-and-coming market, but to do it properly and do it well, it’s about understanding landlord and tenant boards, it’s a matter of being on top of those new legislations.”

Renters may eventually turn into buyers 

Assaf believes it’s worth the work. An expensive housing market may make some potential buyers want to wait, renting in the meantime until favourable conditions arise. Some new homeowners, meanwhile, may be looking to rent a unit within their home or seek out investment opportunities, which requires knowledgeable agents.

“A lot of people are resorting to renting, that’s the reality of things,” said Assaf. “But you keep in contact, provide advice, and build a relationship. My best advice to newer agents is to think of the big picture.”

Establishing a connection with renters can mean new leads and myriad opportunities in the future. Ma also believes it’s worth the work, but if as an agent your focus is on buying and selling, then it’s important to make sure another company or property management group can take care of the renters.

“Real estate business is a relationships business, referrals go back and forth,” he said. “What you do for people, people will do for you.”