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I am looking to adopt a new company policy on rental commissions for my business, and I would like to know what the agents in other areas are receiving as commissions.
In other words, when I was in NYC, the renter paid the realtor a commission of 15% of the ANNUAL rent for the agent to find them a rental. Also, I charged a one month fee for furnished short term rentals over 3 months, 1/2 month fee less than that, also paid by either the renter or their company who was relocating them.
I realize this is high commissions because it is NYC - but now I have a real estate business in Charleston, SC and it's crazy that rental commissions are only like $100 paid by the owner! Showing rentals certainly doesn't make sense, but now the rental market is getting hotter - I think there is a value attached for that if a client decides to rent vs buy, or an owner wants to find a qualified tenant.
I am curious what other real estate companies charge to either find a rental for a client, or rent a home for a client, and who pays the commissions....
Thanks so much for helping put this data together!!
My company charges the owner/landlord one month's rent to find them a tenant. Of that, 25% of the one month's rent goes to the tenant's agent. And, of course, all of these commissions get split with the agent's broker. Most agents in my office refuse to handle them (other than for friends/family and former clients) and they get passed off to new agents.
This is typical for Northern VA. My broker gives me full comission for rentals. There are exceptions ...
Quote:
Originally Posted by lindy112
My company charges the owner/landlord one month's rent to find them a tenant. Of that, 25% of the one month's rent goes to the tenant's agent. And, of course, all of these commissions get split with the agent's broker. Most agents in my office refuse to handle them (other than for friends/family and former clients) and they get passed off to new agents.
In suburban Philadelphia, one month's rent is split between the agents. As stated before, it's why so many agents don't like to work with rentals. Although, I have had referrals, which is THE only reason I might ever take another one on. Craigslist often has more options where the landlord gets the tenant directly, at least in our area.
In my market - which is Northwest Indiana but considered part of metro Chicago - most rentals pay 1/2 month's rent.
After the broker split & fees, I'd say the average take for a agent who puts a tenant in a rental is probably around $400.
(Rentals aren't big in our MLS - in fact, even as an agent who owns multiple income properties, I've NEVER put one of our rentals into the MLS - and I have my own brokerage. I can find a renter quicker with a sign in the yard or on Craigslist and not have to pay anyone out.)
My company charges the owner/landlord one month's rent to find them a tenant. Of that, 25% of the one month's rent goes to the tenant's agent. And, of course, all of these commissions get split with the agent's broker. Most agents in my office refuse to handle them (other than for friends/family and former clients) and they get passed off to new agents.
THis is why most of the agents in my company, when they do a rental, ask for cash. The broker knows, by the way.
In Maryland, the total commission is generally one months rent with each broker getting half then doling it out to the agent via whatever commission split they are on.
Generally I walk away with a few hundred dollars for what amounts to a relatively small amount of work on a modestly priced rental. Granted in Baltimore we have enough turn over for rentals that one could make a pretty decent living just doing that.
In Houston, it's one month's rent that gets split between the tenants agent and the listing agent. I'm not a realtor yet, but I'm keeping a close eye on everything I can as I plan to get my license. Seems like it's hard to find realtors that want to deal with rentals in the Houston area, too. But looking at the transaction I just went through with our rental (we're moving this month, renting for a year before we buy) it seems to me like relatively small amount of work for a decent amount of money. I would estimate that our agent put in about 3-4 hours of work including driving to and from the properties, pulling up listings, paperwork, etc. I'm not sure what he has to share with his broker, but half the rent was $850. That's $212/hour! Even if he has to give half of that to his broker, that's still pretty good money. Is this not typical?
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