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I am landlord and I have rented to tenant who was represented by his agent. Now renewal is coming due. Is it ok to ask tenant to cut the agent and sign a new contract with me directly? This way I don't have to pay his agent 50% of the 1st month rent. I don't make much at all if I pay 50% first month rent.
Am I obligated to go with his agent? I was going to propose two options 1) rent with direct with me (example $1500) and 2) increase rent so commission is adjusted in the tenan's rent ($1,562)
Guess most people responding here don't understand rental commissions? Landlord is responsible for paying both the landlords agent (if any) and the tenant's agent. Usually, it is 30 percent of a month's rent to each representing agent.
For renewals, you are not obligated to pay - what was the agent's contribution here? Usually, by the time renewal comes up, you're dealing with the tenants directly and can get the leasing agreement done 1x1. BTW, why does the tenant still have an agent?
I am landlord and I have rented to tenant who was represented by his agent. Now renewal is coming due. Is it ok to ask tenant to cut the agent and sign a new contract with me directly? This way I don't have to pay his agent 50% of the 1st month rent. I don't make much at all if I pay 50% first month rent.
Am I obligated to go with his agent? I was going to propose two options 1) rent with direct with me (example $1500) and 2) increase rent so commission is adjusted in the tenan's rent ($1,562)
question is why would you increase the rent that the person been happy paying.. are you jacking it up 100$ each time it renews? If you want to keep good renters and they are happy, take the hit on the first month rent and move on.. I am renting and every time my lease is up, it goes up.. services never changes, matter fact getting worst. One thing as a renter hates, is somebody jacking up the rent because you want to.. jack up my rent 100 bucks better be some lawn mowing going on or something... thats my 2cents.
The commission is to find the tenant. That job isn't needed anymore so screw the agent. In the future self advertise and refuse to pay commissions; it is too easy to advertise yourself there is no need to pay an agent fee.
The answer is that you paid a real estate agent a commission because s/he brought you a tenant; that's over now and you can deal directly with your tenant. I am also a Texas LL.
question is why would you increase the rent that the person been happy paying.. are you jacking it up 100$ each time it renews? If you want to keep good renters and they are happy, take the hit on the first month rent and move on.. I am renting and every time my lease is up, it goes up.. services never changes, matter fact getting worst. One thing as a renter hates, is somebody jacking up the rent because you want to.. jack up my rent 100 bucks better be some lawn mowing going on or something... thats my 2cents.
The two things that force rent increases are property taxes and insurance premiums. And cost of living goes up as well. I'm sure you paid way less for a gallon of milk a few years ago than what you pay now?
Unless you signed something explicitly promising the agent a commission upon renewal, it doesn't make any sense to pay a commission to a broker for bringing you a tenant when you've got the same tenant on a renewal.
We have used brokers in the past to get new tenants but there has never been any expectation that they would get paid upon renewal. I guess they could give you access to their documents (like their lease) and charge you for it but you want to be getting your own "versions" of that stuff ASAP.
Realtors are great at bringing people in. No good reason to use them on a renewal though.
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