Charlotte Property Management Weekly: Rent-To-Own- A Great Lead Generator for Traditional Brokerage!

The following is an excerpt from "A Real Estate Agent’s Complete Guide to Representing Rent-To-Own (Lease Option) Tenants" by Brett Furniss (2010)


My companies, BDF Realty, Inc. and Rent-To-Sell Realty, Inc., have been marketing lease options (rent-to-own and rent-to-sell) for years to help our clients meet their real estate and financial goals.


In August of 2009, I was asked by Realtor Magazine to participate in their “Putting Together Lease-To-Own Deals That Pay” (www.BDFRealty.com/FurnissRentToSellWebinar.wmv) webinar. During the webinar, the host asked the presenters what percentage of their company’s revenues came from lease options. The other presenter quickly answered, “100%.” I thought about it and said “15-20%”; afterwards, I felt like a fraud. Why was I asked to participate as a “lease option expert” when 80-85% of my company’s revenues derived from elsewhere?


At the time, I took this to mean the revenue directly attributed to transacting deals for rent-to-own tenant-buyers (who wanted, or had to, rent before buying) and rent-to-sell home owners (who wanted rent-to-own tenants to rent, then buy, their homes). As I thought about it over the next several months, I realized I had nothing to feel guilty about. This is perhaps better understood by looking at my real estate business history:


My Timeline:

2003-2004 I was an investor who bought and lease optioned out my own properties through BDF Realty

2005-8/07 BDF Realty became a rent-to-own company that marketed to lease option tenants. However, 95% of our revenue came from buyer agency commission. The lease option candidates, who thought they would have to rent before buying, qualified to buy immediately!

8/07–12/08 Rent-To-Own home buying waned with the complete uncertainty in the credit markets. Rent-To-Sell became a catalyst to build up our property management business from which we derived most of our revenue.

1/09–Present Property management continues to provide a large part of our revenue. The rent-to-sell program continues to differentiate our property management services, while providing sales listings as well. Rent-To-Own buyer agency (the main focus of this Guide) is now the fastest growing part of our business.


So, the moral is, rent-to-own and rent-to-sell are marketing differentiators for us, but we derive most of our revenue from the traditional sources (buyer agency commission, property management, and listing sales commission).


Bottom line, I believe lease options (rent-to-own and rent-to-sell) are a great way to supplement real estate income while being a tremendous lead source for traditional brokerage.



Brett Furniss is the President & Owner of BDF Realty (“Charlotte’s Most Innovative Property Management & Investment Company”), and Rent-To-Sell Realty (“When You Need a New Solution to Sell Your Home”) which specialize in rent-to-own (lease options) and rent-to-sell homes. For a FREE look into his new book, A Real Estate Agent’s Complete Guide to Representing Rent-To-Own (Lease Option) Tenants: Delight Clients, Fill Vacant Homes, and Earn $2,250 Upfront* (*Minimum!) go to www.RentToOwnAgentGuide.com. You can contact him directly at Brett@BDFRealty.com.