In a rapidly evolving real estate market, Multiple Listing Services (MLSs) face a pivotal moment. Amid industry-wide challenges, such as commission lawsuits and post-pandemic housing market shifts, MLSs must embrace reinvention. As Eben Moran of Stellar MLS aptly stated on RentSpree’s It’s Closing Time podcast, the future lies in collaboration: “How can we come together to make the industry better overall? … Sit and talk to [competitors] and work through stuff, and come up with great ideas.” This ethos of partnership and innovation must guide MLSs in re-establishing their relevance and value, particularly by focusing on the untapped potential of rental data and tools.
The case for collaboration
A recent survey by the WAV Group indicated that more than half of respondents believe MLSs are less valuable to real estate professionals since recent commission changes were instated. This underscores the need for MLSs to focus on their core mission: empowering agents and brokers to succeed. Collaboration among MLSs—through data-sharing agreements and the adoption of uniform best practices—will enhance their ability to serve professionals across borders, providing agents and brokers with seamless access to comprehensive, high-quality data.
Collaborative efforts could also address longstanding pain points in rental transactions. The MLS can lead the charge by empowering agents and brokers with a universal process to handle some of the key rental responsibilities. This includes providing a uniform screening process that puts all agents, regardless of brokerage, on the same page. With all agents utilizing the most optimal process, they can easily do business no matter which side of the transactions they’re on. The result will be increased efficiency, reduced liability from agents who may not handle rentals often, and better client experiences. MLSs should establish and share baseline best practices. Of course there may be slight regional differences in data fields, but the fundamental rental fields should not differ so drastically. By cleaning up rental fields, more agents will add their rentals to the MLS, and the rental data will be easier to use and more accessible.
Embracing rental data as a growth opportunity
Rental properties represent a massive and growing segment of the housing market, with approximately 44 million rental units in the U.S. today— well ahead of the 25.6 million recorded in 1975. Notably, individual “mom-and-pop” landlords own almost half of these dwellings, many of which are single-family homes. These landlords often rely on real estate agents to fill vacancies, offering a vital opportunity for MLSs to bridge the gap between rentals and sales and to add valuable services for their members.
For agents, handling rentals is more than a transaction—it’s a gateway to cultivating long-term relationships. Renters may evolve into homebuyers, while landlords could become repeat clients through property acquisitions or sales. By providing useful and timely rental tools and data, MLSs can help agents seize these opportunities, creating a mutually beneficial situation that ultimately will foster growth.
Reinventing MLS tools and policies
To remain competitive, MLS platforms must evolve beyond basic listing management to offer advanced capabilities, including:
- Data analytics: Enabling agents to identify market trends and guide client decisions.
- Sophisticated search functionalities: Helping agents and clients find properties that align with specific needs.
- Rental screening tools: Establishing uniform processes for tenant screening and rental applications, reducing liability and improving efficiency.
- Integration with CRMs and third-party platforms: Simplifying workflows and enhancing lead management.
- Universal rental listing standards: Creating consistent fields and requirements across MLSs to ensure data quality and usability.
The way forward
With 2024 drawing to a close and the start of a new year around the corner, MLSs are at a crossroads. In order to thrive going forward, they must focus on collaboration, innovation, and take advantage of the largely untapped potential of the rental market. By addressing the everyday pain points of agents and brokers, MLSs can reassert their value and relevance in an ever-changing industry.
As Stellar’s Moran put it, “If it doesn’t serve the agent, it’s no good.” The future depends on working together to stay relevant. For MLSs, this means fostering partnerships, standardizing practices, and providing tools that empower professionals to succeed.
By Michael Lucarelli is the CEO of RentSpree
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.
To contact the editor responsible for this piece: [email protected].
