Unbeknownst to most Zillow users, the platform began 2021 with some big changes.
Previously, Zillow syndicated listings from the Multiple Listing Service. That meant consumers would see every listing that agents could, excluding off-market and pocket listings. This was across the board, including all sorts of properties for sale and for lease.
Until now, Zillow only had one source of revenue: their premiere agent service. This is a useful tool for realtors both for their own listings and to develop new relationships.
Zillow Changes in 2021
In an unpopular move, Zillow announced it will now charge a weekly fee to realtors and landlords who want to post a listing on Zillow. This change was announced in the Fall of 2020 and has taken effect in January of 2021. This includes Zillow, Trulia, and Hotpads.
What was their reasoning for doing this? Zillow claimed that this move would clean up the cluttered rental market, improve listing accuracy, and offer valuable tools to manage listings. For landlord managed listings, this may be true.
However, for realtors, this is more similar to ransom than a new, helpful service. Our listings are managed through the MLS, and proficient realtors will keep their inventory accurate. As for the tools such as credit checks, tenant applications, and rental payments, those are managed internally and with much more attention to detail than Zillow can offer.
Implications for Malibu
In lower-end markets, this change may be welcome. Although previously free, landlords can now post and manage their listings with greater ease.
But what about Malibu? In our unique area, beachfront leases in summer can be $150,000/month and beyond. Skillful marketing, detailed tenant vetting, complex negotiations, dense contracts and disclosures, and careful wiring instructions are just a few of the services that a well-chosen agent provides.
So far in Malibu, there are less than 20 homes listed for lease through this new portal. This means the consumer is only seeing a fraction of what is actually available. Even if half of all rentals are eventually paid postings, this is still a huge disservice to the renter.
Where to Look
Luckily, Zillow and Trulia are not the only rental platforms. While Redfin only syndicates homes that are for sale, Compass.com syndicates directly from the MLS to show you everything that is listed for rent and for sale.
However, the best way to start your search is with an experienced agent who knows the inventory. They will be able to locate available listings in the right area in addition to off-market options. If they are a Compass agent, they will also be able to put together a Compass Collection that allows you to save, comment, and share rentals that might be a good fit for you.
Ready to Start?
Our team is proud to be a local resource for landlords and tenants alike! Whether it is a luxury beachfront rental or a casual Malibu getaway, our full-service team is here to help. With over $1 billion sold and leased and 35+ years of experience, our clientele are in the best of hands.
To get started, call 310.230.5771 or email russellandtony@compass.com | We look forward to working with you!
