8 Surefire Ways for Realtors to Earn Passive Supplemental Income

Success doesn’t come easily to real estate agents—especially since 87% of realtors fail and quit in the first five years. You might see an incredible streak of successful deals in some months and struggle with a seemingly endless dry spell the rest of the year. The uncertainty of the market is scary—even for the best of realtors. 

But a practical way to fight this uncertainty, be prepared for bad markets, and secure your financial freedom is to generate passive income. A passive income stream gives you a stable cash flow as opposed to the feast-or-famine dynamic of a realtor’s job. 

What’s more, these supplemental income sources can maximize your earnings, build strong relationships with your clients and partners, and take you closer to your financial goals sooner. 

So, if you’re looking to unlock a passive income source, this guide will walk you through eight actionable ways. We’ll also cover the best ways to multiply your income—without all the heavy lifting—using Jetstream. 

Here’s what we’ll talk about:

1. How can a realtor make extra income? 
2. How can realtors get paid when they’re not working?

How can a realtor make extra income? 

You’ll find a lot of advice on how to start earning passive income along with your real estate job to make some extra cash. But the real challenge lies in putting this advice into action.

We’ve done the legwork on your behalf to give you eight of the most practical passive supplemental income sources with an easy roadmap to get started. Let’s look at these eight methods in a sequence of most passive to least passive:

1. Master the skill of rental arbitrage 

Rental arbitrage is the practice of taking a property on lease for a long term, then renting it out for shorter periods on platforms like Airbnb and VRBO. 

So, you essentially pay a small sum to lease the property and take on the burden of vacancy but end up making a profit by renting it for short stays. The difference between your lease’s monthly fee and your earnings from the short-term rental becomes your passive income. 

Rental arbitrage cuts down the hassle of a considerable capital investment, closing costs, and taxes involved in buying a property. 

Here are a few handy tips for finding the perfect property for a rental arbitrage:

• Assess the demand for short-term rentals in your chosen market to define the arbitrage potential for the property
• Understand the local rules and regulations for running a short-term rental in your area
• Analyze the fluctuations in demand—if the market fluctuates frequently, your profits will too

You need to do some research before leasing property for rental arbitrage.
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The only tricky part of leasing and letting a property is managing it well. Without the right systems to deliver a seamless guest experience, you might run your business into the ground. 

Thankfully, partnering with Jetstream can save you the trouble of doing operational work and maximize guest delight for your STR. Jetstream works as your virtual property manager to effectively communicate with guests, plan and schedule cleaning jobs, offer keyless check-in and check-out, automate several workflows, and do a lot more heavy lifting. 

2. Set up a white-label vacation rental management company

Starting a vacation rental management company gives realtors the chance to create a passive income stream with the potential to snowball into a thriving business. Unlike rental arbitrage, you would manage vacation rentals on the owners’ behalf and earn profits, while working part-time. 

Think of this as an opportunity to use your network and work with past clients to manage vacation rentals without upfront costs. The best part is that you can quickly scale this business to handle as many properties as possible and maximize your earnings

Jetstream can make things easy for you if you’re planning to start such a venture. Jetstream’s advanced technology and service teams will take care of everything, from booking website creation and marketing your property to listing optimization and guest communication.

Jetstream wins back your time to manage a vacation rental, unlocking a source of passive income. 

3. Invest in your own cash flow property

An underrated way for realtors to generate passive income is by strategically investing in their own properties. Leverage the house hacking technique to maximize your earnings from your home. 

With house hacking, you can earn extra by renting out spare rooms, basements, or garages. This rental income can generate enough passive earnings to offset the mortgage for your property or go into your bank for an added financial cover.

You can practice house hacking with any of these five popular methods.
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Here’s how you can strategically invest in your own property and boost your monthly cash flow, aside from your day job:

• Look for a good neighborhood with decent demand and find a property that matches renters’ expectations
• Do some due diligence to understand the property’s lifetime monetary potential for long-term results 
• Carefully choose your financing options to avoid taking on any significant risks 
• Verify potential tenants through background verification to minimize the possibility of fraud or mishap 

Before renting the property, identify your ideal tenant and make necessary modifications to meet their needs. This will increase your chances of getting the right price without too much negotiation. 

4. Try your hand at real estate wholesaling

If you’ve built a solid network within the industry and have a knack for selling, real estate wholesaling can be another lucrative great side hustle for you. 

As a real estate wholesaler, you will get into a contract with a seller looking to sell their property and find a real estate investor interested in buying it. Your role is to sell the property at a higher price than the seller’s asking price, and this difference becomes your profit.

Wholesaling can earn massive profits if you find the right buyers and convince them to sign a deal.
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To succeed as a wholesaler, you need a systemized workflow that yields results every time. Use these handy tips to ace real estate wholesaling:

• Prepare thoroughly to cover every detail about the property and answer any question a buyer might ask 
• Sharpen your persuasion skills to deliver a convincing pitch and get the upper hand in negotiations 
• Focus on building a level of mutual understanding with the buyers instead of pushing them toward the deal
• Prioritize empathy and rapport over manipulation and assertion to close the deal faster

Homeowners in distressed situations looking to sell their property quickly can make an excellent deal for you. You can get a lower asking price for such properties and sell them for a bigger amount to increase your profit value. 

5. Start a value-packed real estate blog 

Monetizing your industry knowledge is another gateway to passive income. It’s a fairly straightforward process—pack all your expertise and insights into an attractive real estate blog that generates good traffic, then earn money passively by:

• Selling subscriptions for exclusive content on your blog or email
• Using affiliate and referral links to products that bring you a commission 
• Allowing sponsored content on your blog for others to promote their services
• Including ads on your website 

On top of generating passive income, real estate blogging can also help you:

• Establish and enhance your authority as a realtor
• Offer reliable information to win your target audience’s trust
• Create ample buzz and generate leads for better business

Take a page out of Paige Martin’s blog for some inspiration to start your blog. Her website covers many aspects of her business and has an active blog to share updates and information about her target market, Houston. 

Paige Martin’s blog is a mix of insights for buyers and renters in the Houston market.

6. Offer real estate photography services

You’ve been showing and selling properties for so long that chances are, you’ve developed a flair for real estate photography. If this sounds like you—even if you’re not confident about doing it professionally, real estate photography can be a great source of passive income, especially since you already have a basic understanding of buyer expectations. 

Plus, getting started as a real estate photographer isn’t complicated either. You have to primarily focus on honing your photography skills and learning the ins and outs of photography guidelines, then it’s an easy road ahead. 

Here’s what you need to get started:

• Professional equipment like a full-frame camera, wide-angle lens, light stands, and remote triggers
• An understanding of practical tricks to take good photos, like the use of flash, camera angles, and equipment setup
• A process and timeline for the photo shoot
• A pricing structure that matches your skills and time commitment 
• A social media profile or portfolio to showcase your work and get clients

Once you master the basics of the job, you can upgrade your equipment and offer advanced add-on services like 360-degree property tours and aerial photography. The better your service package and quality, the higher profits you can generate.

A visualization of the average rates for real estate photography in different US states.
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7. Join an affiliate marketing program 

As a realtor, you always meet new people and expand your network. Now, imagine tapping into this ever-growing network to sell things as an affiliate partner for any company—it promises a massive potential to earn passively.  

Several companies run affiliate programs for real estate agents to participate and earn. Become an affiliate for the brands you believe in and get a decent sum in your bank for every sale you make. Let’s look at some popular affiliate programs you can consider:

• Buildim: a SaaS product to help investors and owners manage properties themselves; every user you get earns you a 25% recurring commission. 
• Foreclosure: a membership platform for interested buyers to get regular updates about available properties; every member you get earns 25% commissions. 
• HomeAway: a specialized platform for vacation rentals; every homeowner you get earns you $20. 

You can choose from tens of affiliate marketing programs available for realtors. Remember to pick brands that align with your ideas to make your pitch more authentic and increase conversions.

8. Take up side gigs for home staging

Home staging can be a great way to earn some extra bucks if you’re into interior decor or have an eye for design. Staging is the process of setting up an open house with the right furniture to show potential buyers how it’d look with their own furniture. Staging is also a crucial step before the property’s photoshoot. 

As a home stager, you’ll source and arrange the furniture to give the property a complete facelift that convinces the visitors to sign the deal. You can charge as per your skill level, and how versed you are with the process to deliver the expected results. 

How can realtors get paid when they’re not working? 

Realtors can earn money beyond their full-time job in two ways: through a side hustle and a passive income stream. Let’s take a broader look at both these categories to understand the difference better:

Real estate side hustle 

A side hustle is a gig you take up beyond your primary job to earn side income. Most options discussed in this guide are side hustles where you have to do extra work to make more money. Starting a real estate blog, doing house hacking, and wholesaling are some of the realtors’ most popular side hustles. 

Passive income for real estate agents

Passive income is a way to generate extra earnings without getting involved in any gigs. Realtors can generate passive income through rental arbitrage or running their own STR management business. They can also do more creative things like starting a podcast, or YouTube channel, though they might not be as profitable for you as the former ideas.

In all cases, a service like Jetstream can do most of the management work on your behalf and produce extra income on auto-pilot. This white-label, all-in-one solution takes care of all the work on the backend while you use your time for more important things. 

Multiply your earnings with passive income 

The real estate industry is not for everyone. Market fluctuations and slowdowns can severely impact your income without prior warning. Creating a source of passive income can protect you from these uncertainties and keep you financially stress-free even in difficult times. 

Managing a short-term rental is arguably the most profitable of all the options available to you. With a service like Jetstream to do all the work on the backend, it’s hassle-free too! 

Frequently asked questions about supplemental income for real estate agents

What is the highest paid type of real estate agent?

A commercial real estate agent makes the highest amount, earning a six-figure pay. According to a Real Estate Express survey, the average salary of a commercial real estate agent is $91,208—higher than all other types of agents.

What are some benefits of working as a real estate agent?

Here are a few benefits of working as a real estate agent:

• Follow a be-your-own-boss schedule
• No cap on your income 
• Enjoy greater mobility in your career
• Massive potential for growth with the right clients
• Avenues to earn passive income easily 
  

What are some common ways to make money as a real estate agent?

Here’s how you can earn money as a real estate agent:

• Conduct short sales 
• Offer services as a broker
• Work as an agent for the buyer
• Post listings on behalf of sellers
• Manage property for the owner