Home Selling in 30338>Question Details

Jodie, Home Seller in 30338

what is the typical commissions charged by agents for rental of a house priced in the 500ks?

Asked by Jodie, 30338 Tue Aug 4, 2009

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6
Best way to think of a rental commission is what percentage of the annual cashflow you are going to receive is a fair share for the agent?

For tenant placement I charge the first months rent and 5% of the cashflow received after year 1. Equally important, if the tenant buys the property from the landlord, then I charge 4% of the sale. These are my rates and are somewhat negotiable depending on circumstance. They are not "Typical" rates but this is what I charge to guarantee undivided attention.

For Listing side: I will charge $500 to take the pictures, install the lockbox, input into database, create flyers, install signage, and assist the landlord with credit checks, Move-in Move-out inspections, and drafting a lease. Paid up front.
Web Reference: http://maxsell.net
0 votes Thank Flag Link Tue Sep 1, 2009
I have leased several homes for Homeowners and I typically charge one months lease rate. I charge the tenant $50 for running credit, rental and criminal history. I have these reports almost immediately after entering all the appropriate information in. I transfer all keys, remotes, etc. and do the walk through with the tenant. I go over transferring all utility service and make sure the tenant knows what is covered in the lease and what is not.

I usually split the commission 50/50 with another agent so everything is completely fair and other agents want to bring potential clients to my rental home. Regardless of the value of the home, 200K or 500K, I tend to stay with the same thought process of one months lease rate.

I specialize in Intown Atlanta Properties so you might run into different scenarios, fee structures, etc. outside the Perimeter.

Hope this helps and good luck to you.
0 votes Thank Flag Link Wed Aug 26, 2009
Jodie -
I want to make a few things clear regarding the previous answers...

I have worked a large number of rentals across the city on both the listing and the tenant side and at the risk of being a little rude, I feel confident that my previous answer and current clarification of it are extremely accurate. I am not anticipating getting your business, just answering a question as that's the beauty of this website. If you like my answers and consider interviewing me for the job of listing your house for rent, great...
If you want to talk about MY specific fees or rates, I am happy to do so with you directly.

A TYPICAL commission to LIST a home for rent is one month's rent. As stated in my initial post, the tenant makes an application which includes a credit report, reviewing employment/income verification as well as rental/ownership history. If you approve the application, a lease is drawn up and agreed to by both parties. Once it is agreed upon, the tenant signs it and remits a security deposit TYPICALLY one month's rent payable to the owner in certified funds - a pet deposit is usually made at this time as well.

The first month's rent is TYPICALLY made out to the broker as payment for services and a predetermined portion (it's in the rental listing agreement) is paid to the co-op agent who brings a tenant.

One cannot scan the listing service to determine what LISTING fees are - only the co-op fee that is being offered to an agent bringing a tenant.

As with ANY real estate transaction, our fee is negotiable. If I were in a really good mood, I could charge you $0 to list and pay out of pocket to a leasing agent - yes, that's the proper term for the tenants' agent.

If have questions about my diligence or knowledge of the Atlanta market, please feel free to read through any of my previous Trulia posts by clicking on my profile. I have been a member since Fall of 2007 and I think my answers will show you the quality of my work and why I actually earn my fees and commissions.

It's been proven time and again that using an agent that knows what they are talking about gets you results and just putting a sign in the yard and an ad in the paper doesn't cut it anymore. Beware too of the safety risks of putting your property on craigslist or other sites and opening your home to people who find you online and want to meet you at the property.

I generally don't repost on my own answers since I try to answer them in full the first time, but I thought it important to clarify and reiterate a few of these points. Ultimately, it is of course your choice of how to handle the transaction and I wish you the best of luck!

Lee
lee@leeadkins.net
Web Reference: http://leeadkins.net
0 votes Thank Flag Link Wed Aug 12, 2009
The previous responses have already addressed the "general" trend. However, you may not know that an agent can search for other rentals in your subdivision or neighborhood area to see what's going on in your specific market. My suggestion would be to find out the range by interviewing agents to list the rental property. Knowing whether the results are on the low end of a couple hundred dollars or on the higher end of one months' rent, you'll be better prepared to discuss what's best in your situation. Hope this helps!
Web Reference: http://www.AskAgentLisa.com
0 votes Thank Flag Link Tue Aug 11, 2009
Anyone who quotes a "standard" rate is being (perhaps unintentionally) misleading. As the Real Estate Commission reminds us, rates are negotiated between the client and the professional.
Your agent can tell you what his or her company charges,, but should not make statements about what other companies charge.
You are certainly free to call other professionals to find a range in the area, and could actually do this in a fairly short time by calling several different companies whose signs you see in the locale of the property.
As a client, it's fine for you to say what you think is a fair rate, and it's fine for the agent you are dealing with to accept your fee, negotiate with you, or decline the business.
Good luck!
0 votes Thank Flag Link Tue Aug 11, 2009
Jodie -

Thanks for your post here on Trulia. The standard rental listing fee is one month's rent and the listing agent generally shares a portion of that with an agent bringing a tenant.

In this price range, it may be possible to get a slight reduction, but in general marketing a higher end home costs more money - you could possibly negotiate a flat fee that's a little less than a full month's rent. You would typically get the security deposit - usually one month's rent - at lease signing and then the tenant would bring one month's rent at move in made out to the broker. Beyond that you can handle monthly rent payments however you prefer.

If you do list the property for rent, I would recommend at least offering 30% of one month to an agent bringing a tenant. I have been doing rentals for years and there's nothing less appealing than driving someone around to high end rentals and then making $200.

If you have any further questions, please feel free to reach out to me directly.

Best of luck to you!

Lee
lee@leeadkins.net
404 966 3247
RE/MAX Greater Atlanta
0 votes Thank Flag Link Wed Aug 5, 2009
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