When it comes to real estate, the typical job that most people would hear would either be a real estate agent or real estate broker. Nowadays, people don’t exactly invest in buying a house of their own; instead, they rent apartments. That’s where apartment locators come in. An apartment locator is a profession that one can take when interested in having a career in the field of real estate.
An apartment locator is a licensed real estate agent. Unlike other agents, apartment locators specialize in apartments, rental houses, and short-term rentals. You might have heard that clients who avail of this service get it for free, so you wonder, “How do apartment locators get paid?” or perhaps “How much do they earn?” Lucky for you, this article talks about exactly that.
How much do Apartment Locators make?
Frankly, there is no exact amount that could best describe an apartment locator’s earnings. It depends on a few factors. First, you must know how an apartment locator actually gets paid. An apartment locator’s salary comes from a property’s advertising fund. The property pays them for referring a client to them.
There are two ways in which an apartment locator gets paid: they either get paid by a percentage of each month’s rent or get paid at a flat rate. What an apartment locator receives if paid by percentage depends on how much the property charges for rent. A flat rate, on the other hand, would be a fixed amount an apartment locator receives regardless of how low or how high the rent that the property charges are.
Another factor that determines how much you earn would the kind of broker sponsorship you choose. You would need to license under a broker to be an apartment locator. Real estate brokers would take a percentage of your commission. The amount they receive would then depend on the broker sponsoring format.
In the traditional setup, you work for an apartment locator firm. Typically, working for firms like these would give you around 25% of the commission from the leads that they provide you. To earn this, you have a quota of leads to work on. If you choose to be an independent contractor, you do all the legwork, but in return, get all of the commission. In this format, you look for your own leads but you’d still be under a brokering sponsor.
Lastly, your commission would also vary from area to area and market to market. For example, Let’s say you primarily work in Uptown Dallas where the average for a 1-bedroom apartment would be $1000. If the average rates are 100% from a 1-bedroom apartment, then you earn a $1000 commission.
Ultimately, how much you earn depends on what you do as an apartment locator. Those who work for bigger firms earn around $20k to $80k yearly, while those who work independently earn just as much as they work. You could probably earn around $12k in a month with only 10 clients if you work often in a high-value market.
Real Estate Profession
It might be confusing when you face the terms Real Estate Agent, Real Estate Broker, and Realtor. You might be thinking “Don’t they all sell a property or something?” Here’s what makes them different from each other:
Real Estate Agent Vs. Real Estate Broker
Real estate agents are licensed professionals who help people buy, sell, and rent properties. They make the gears of a real estate transaction work by bringing buyers and sellers. After closing a deal, they get a commission which is a percentage of the property’s value. On the other hand, a real estate broker is a real estate agent who continues their education to receive a state real estate broker license. This license enables them to work independently, start a brokerage of their own, or hire real estate agents to work for them.
Realtor Vs. Real Estate Agent
A realtor is a real estate professional who is a member of the National Association of Realtors. Memberships to the NAR are open to appraisers, residential and commercial real estate brokers, salespeople, and property managers. Members must adhere to a Code of Ethics established by the NAR. Real estate agents may choose to join the NAR and may find it beneficial because of the NAR’s good reputation which can help attract more clients. Ultimately, the difference between them is determined by the certifications that they hold.
Part-time or Full-Time
With all that said, you may now be wondering about whether apartment locating can be done part-time or full-time. You may be considering this profession depending on whether or not it could pay your bills and be a steady source of income. Choosing to work part-time or full-time entirely depends on you. All things considered, working either of them is a good way of starting your real estate career.