This is simple. You go online find 15 properties that you like. Most are all different listing agents, some are "cooperating brokers". The selling agent or listing agent has offered to pay cooperating brokers a commission to bring any willing tenant.
You call the 'buyers' broker or in this case a tenants rep. You ask that person about the property you are interested in, he or she shows you the unit, gives you helpful advise, writes your offer, responds to your counter offer if necessary, and finally negotiates a final price. This doesn't include the amount of time it takes to collect your deposits, etc.. ! Why do you assume agents do this for free? More importantly why do you care if the the owner has agreed to cooperate with other brokers and is paying for all of this.

The retainer is so that if in any part of this process you just decide to use another agent, try to go around the agent working for you, or have the agent you contact assist you with other properties. No one likes a client that 'sleeps around'...;)

Yvette,

I completely understand your point of view....I feel there are lots of agents out there that shouldn't be... And I am not saying charging a rental retainer fee is right or wrong-- just consider this..

If you are going for a job interview, when the job description is laid out in front of you, you make a decision whether you want to work for that amount of money or not. That's what those agents are doing. Plain and simple.

If you don't like the idea of paying the retainer fee--then don't. There are a lots of agents out there who don't charge one.

I have also heard of agents charging retainers for buyer's too, so you're not necessarily being charged a retainer just because you are a renter.

Good Luck.

Ok Lorie,
Explain to me why I should pay $500 retainer fee and what that would consist of? It doesn't cost $100 in gas to drive someone around to look at a few properties. It doesn't take hours to send listings of properties for rent. You the realtor dictate on whether or not to drive a client around to look at properties. It would be a insult to have someone come from out of town and tell them "Oh, I am sorry but it cost so much in gas to drive you around to look at properties , you will have to find your own way to find and look at these properties!" You wouldn't have a client! What you give to a job is what you get back! You mutter and mutter about how much you spent in gas to take a client to look at properties then see what you get back in return. I would rather have a happy client(homeowner) if I was a listing agent, or a happy client (renter). You get out of it what you put into it. There are many realtors out there that work really hard to find properties for their clients and then you have those that don't and want to try to take advantage of a client. Anyway, enough said!:(

Like I have stated before, if I was buying a home, a realtor would not ask for a retainer fee. So why should it matter if I am renting a home? I believe that there are real and true realtors that actually care enough about their clients that it shouldn't matter how many homes they take them to or what kind of paperwork is involved a long as they meet the needs of their clients. By charging a fee, that is saying to a renter or buyer that I am only $ to you. That isn't right. Sure you may have burned gas,etc.on taking a client to look at properties but that is all part of the job. The true reward is meeting the needs of the clients because if you are good at what you do you shouldn't or wouldn't charge a fee. I think some of you realtors that are trying to profit off a client for whatever buck you can get need to go back to realestate school and be more educated in learning what the job is all about. So what if you only make a certain percentage from a rental, but the more clients you have the larger your profit is from renting the property that a homeowner may have. Not all realtors are in it to take, take, take from a potential buyer or renter. This makes me sad to think that many of you realtors are not in it for the interest or their clients only the all mighty dollar!:(

Yvette, I do not believe that the agent is charging you $500 to pull listings. Listings are available on the internet for all to search although our listing service provides the most up to date information. You mentioned that you can pull your own listings and you need an agent to provide advise...and that she had not driven your around yet.

That advise does not come free... don't you think that her expertise that you want her to share with you should be compensated?

A retainer fee is just that... a fee paid to retain a professional so that she can do all the things you would like her to.

.....ditto, Lorie. We provide a valuable service, and if we don't acknowledge it, then how can we expect the public to do so? I am sure if a client went into work one day and the boss said "we are asking you to work for free today" , the statement would not be accepted without and argument! There are some of us for whom service is palced above all, but we must pay the price of staying is bsiness in order to provide that service.

Cleints have a choice, they DO NOT have to settle for paying a retainer, but those that ask for one must be very confident in the level of service they are providing.

I am sure most people have not taken a look at the "co", i.e. the compensation field in the listings of rental lately. It used to be that there was an automatic 50% of the monthly rental paid the the non-listing agent.....lately, it is sometimes as low as $100.00 on a property renting for $1000.00 per month. For example, the agent's broker charges a transaction fee of $100.00 to process the transaction. If you do the math, it is easy to see why one may want to charge a retainer in order to assist you.

Additionally, some "clients" have no loyalty to an agent showing property to them (you may not be one of them). So that agent pulls and identifies listings, shares valuable information, makes calls on a client's behalf AND drives them around to show properties and ends up with NOTHING. Our services are valuable, and someitmes we must take steps to make sure everyone understands this. Doctors will not look at a patient until they have been assured they will be paid, attorneys put you on the clock and takes cases on retainer when they are almost sure they will be paid. Unfortunately, agents must now find a way to assure they can stay in business. I do not know the specifics of your situation, but I am almost sure that agent is exercising her right as a professional to transact business in a manner that will ensure profitability, since it is the only way we can stay in business.

Good luck in your search and I hope you are able to meet your objectives.

Sandy Martin
New Century Realty Group
404-284-3997

Greek to me, I've not heard of this but I don't handle rentals. I do know that a retainer fee has been introduced into listing agreements and I think that's appropriate.

Hank

I just think $500 is a bit steep to try to charge someone when the agent isn't the listing agent. Not only that, pulling up listings I could do myself for free. So why would I want to pay someone to do something for where if I or a friend of mine was to do it would be free. I thought that the non-listing agent was there to help the "client" find a rental but were paid through the owner or the listing agent. No one has driven me anywhere. Just trying to get assistance in relocating back to the area and finding a rental that is best for me. I thought by seeking a realtor for advice and help I would get it. I guess asking for help comes with a price now adays!

Yvette, you would not owe the $500 if you did not enter into a written agreement with the agent which entitles him or her to the $500.00.

Rentals and purchase properties are very different in their compensation. A rental commission is usually equal to one months rent to the listing agent of which they offer a few hundred dollars at best to the leasing agent (the agent that brings the tenant) where on a property listed for sale there is a percentage of the sales price and the listing agent agrees to share the commission 50/50 or in some cases they even offer the buyers agent more than 50/50 as part of their marketing package to the seller. Rentals are not really profitable for the listing agent and are even less profitable for the leasing agent (the agent representing the tenants interest). In fact, many rental fees do not even cover the expense of the gas to show the rentals much less an agents time.

Many consumers do not realize the expenses that Realtors front before they ever earn a commission which include but are not limited to the percentage of each transaction owed to our broker, the percentage owed of each transaction to the listing service, lockbox keys which provide our clients access, transportation (gas and maintenance), etc. Not to mention time invested!

So if an agent only receives $200 as a coop fee on a rental from the listing agent and $50 went to gas, $100 went to the listing service which is required on all rentals, and a split to the broker the agent is maybe left with $20. So basically the agent has worked for free and I do not believe that there is a person in America that wants to work for free. We can all volunteer in our free time but we must also make a living. This agent asked for the retainer fee so that she is somewhat compensated for her time and her expertise.

Now you can choose not to work with this agent and find another... perhaps an agent that does not charge a retainer but the bottom line is you need to choose an agent that you are comfortable with and that is going to do right by you. And the representation that a great agent provides is worth the $500 retainer because they are going to save you time, money, and heartache down the road. If you are not comfortable with this agent you need to interview others.

Keep in mind that this agent is entitled to the commission on any properties she or her has already shown you.

I haven't heard of that either, Yvette, and I have worked with renters for a long time. It doesn't really surprise me, though, that agents are asking for money to assist with rentals. The listing agent on a rental will sometimes only offer a small "finders fee" to the agent bringing in a buyer. Depending on the price point of the rental this can start at around $80. Peanuts really.

When an agent has spent a lot of time researching rental properties in a given area and taking a renter around in their car (on say a weeknight or weekend...taking them away from time with their families), $80 or even $200 might not fill the bill.

Also, with renters, it's not as clear to us Realtors if they are going to be able to quality TO rent. With a buyer, you get a pre-qualification letter from their lender stating what they can afford to spend. With a renter, you don't find out until they have found a property and filled completed the credit background check. At that point, you've already done all of the things stated above, and may come to find out that they have a terrible credit history and no one is going to rent to them.

I have never charged a retainer fee for a rental. I've never charged one to a buyer, but I have heard of it being done.

If I were you, I wouldn't sign anything that says that you need to pay the Realtor $500 to find you a rental property...unless it states that it will be returned to you in full within a week of move in. That gives the agent time to get a check from the listing agent, turn it into his/her company, get it back with his/her cut taken out and mailed to you.

$500 seems very steep to me. I guess it would depend on what price point you're looking at, but I would say maybe closer to $200.

I might suggest that instead of a retainer fee, you have the Realtor run their own credit check on your ahead of time to make them feel more confident in your ability to be a qualified renter. It will probably cost you a non-refundable $50 or $60...but if they find you a place quick enough after receiving that report, they may be able to get the owner and selling agent to use that report in lieu of running a their own.

Good Luck Yvette!

Jodi Smith
Atlanta Real Estate Agent
Keller Williams Realty Consultants – Roswell, Georgia
678-763-6025
jodismith@kw.com
Tweet Me: http://twitter.com/JodiRSmith

A retainer fee is normally something lawyers charge as an upfront fee to start helping you. What is the fee you have to pay? Normally you can expect these fees to be in the $1,000s.