No one here is suggesting any rate, because to do so might be interpreted as price-fixing. We don't engage in that. Rates are negotiable.
In looking at pay versus effort, would it be fair and reasonable to pay a Realtor $50 to drive to several houses over several days if the rent negotiated is $2,000 per month? First off, no Realtor in her/his right mind is going to take the effort to show a house that doesn't even pay for gas.
Many cheap brokers list their $600/month rentals with a 25% of one month commission to the Realtor. Realtors don't bother showing those, either. The sad news is that the listing broker keeps the other 25% basically just for listing it. These $150 commission properties sit empty for months sometimes.
So, what is fair to pay someone who spends 15-30 hours showing properties and has gasoline to pay for, too, and has to share with his broker? On $1,000 rentals, $500 will usually get a Realtor's attention. But on $4,000 rentals, will $1000 get their attention, too?
In other states commissions of 10% of the value of the entire lease are not uncommon. So, on a $24,000 2-year lease, $2,400 is typical, even though one month's rent is only $1000. An owner who chintzes on commissions is like the Lexus driver who stiffs the valet parking guy -- what kind of service can he expect?
A quick scan of the MLS will show commissions offered ranging from a flat $200 to 25% or 50% of a month's rent. Other values do show up but less often. Property managers often charge these fees to give the Realtor bringing the renter, plus a slice for themselves. So, a listed property owner, based on a quick scan, may pay from $400 to 100% of a month's rent.
There is no standard or price schedule set by anyone.... more