Tough call. I think I'd want to know more about why they moved out personally. If the reason if frivolous, I'd keep the commission. I figure, why should you take a loss because they are flaky? Further, ethically I think I have a duty to help them understand the meaning of a written contract :)

Brendan Murphy
Broker, CRS, GRI, ePro
Raving Real Estate
Laramie, WY 82070

I had this happen to me. But it happened the day before the tenant moved in. I did not return the commission. I had found the tenant a house, negotiated the rent, did the credit check with the landlord and had a signed rental contract. The tenant was supposed to move in 6 weeks later. A few days before, they decided they didn't want the place. The landlord returned the security deposit but only because the tenant threatened to actually move in and have to be evicted. This was the first time this person was being a landlord, so they didn't want trouble.

Steve, you earned your commission when you did the deal...I don't think you need to return your commission. You cannot guarantee your tenant/clients - we never know what is going to happen!

The best thing to do in this situation is whatever your heart tells you!

Best of luck!

Thanks for everyones response. To be more clear. I represented the tenant, not the landlord. I can also, tell you that I will never work with that tenant again.

I agree with Rebecca. The meager commission is probably yours to keep. Choose your battles - do you want to keep the client? If so, credit him that amount until you get a new tenant.

I would say, if you want to keep the client..then YES return the meager commission. Find a new tenant and get paid then. You may be entitled legally to keep it, but they've already had the hassle of losing a tenant due to no fault of their own and now they also have to pay an agent twice to rent the place? Come on.

Hi Steve,

My guess would be No refund. I believe Commission is considered "earned" once the funds are disbursed (all money is distributed) and the transaction is complete (the tenant took possession of the property). At this point the issue is should be between the landlord and the tenant. It no longer concerns the brokers.

But the best answer is that you should alert your Broker right away, he or she will let you know how to proceed.

I hope this informatuion is helpful.

Sincerely,
Danelle Feigenbaum
Associate Broker/Realtor
Century21 Abrams, Hutchinson & Associates

Steve, unless it was written into the contract that the tenant must occupy the unit for x amount of days or months, the commission is yours. You did your job. You found a tenant. But that is a sticky situation and you didn't know that the tenant would bail out. Hopefully a lease was signed. Good luck