Rental Basics in Los Angeles>Question Details

Paula, Home Owner in Los Angeles, CA

I have a home in zipcode 90064 I want to rent out. What is the typical Leasing fee charged for finding tenant?

Asked by Paula, Los Angeles, CA Mon Jun 4, 2012

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17
Hi Paula, I specialize in your area. The rental market is hot... 6 % of the total years lease and it comes out of the deposit... I will place you on all the leading rental websites!!! You will have tons of action, i screen all tenants for you, with credit reports,and the such... Ultimately it is your choice...I am leasing a house on the Venice Canals, now and the first day i had 5 phone calls following showings....

Kind Regards

Madelaine Kolisnyk, Realtor
Power Brokers International
310.869.1712
DRE#01377862
madelainekproperties@gmail.com
http://www.MadelaineK.com
1 vote Thank Flag Link Tue Jun 5, 2012
Hello Paula,

Typically there is a 5%-6% commission fee for the 1st annual term. I specialize in sales and leasing in Cheviot Hills (90064) and the neighboring communities. You may recognize me from some of my advertisements, local listings and bus benches. Please feel free to contact me to discuss your options in further detail.

Thank you,


Cory Holtzman, Exel Properties
(310)663-6011
cory@coryholtzman.com
1 vote Thank Flag Link Mon Jun 4, 2012
Typically 5 to 6% of the first years rent.
1 vote Thank Flag Link Mon Jun 4, 2012
My office charges normally a commission of 6% of the total contracted lease period, usually one year (12 months x the monthly contracted lease amount). This commission is shared with a cooperating broker/agent when an agent other than the listing agent for your property brings in a client and closes the deal.

So if the agreed rent at acceptance of the lease is $1000 a month for 12 months, the commission would be 6% of $12,000 or $720.00. The listing is posted to the MLS; a sign posted on the property if requested; perhaps a Craig's List ad with the agent's information; Westside Rentals with the agent's information. My listings are automatically placed on Realtor.com and Trulia. From these sources, the agent's phone begins to ring.

Currently I am the listing agent on a condo for lease in NoHo. In the last ten days, I have held one open house and held seven private showings. The agent procures the Application to Rent, receives payment from potential renter to run a credit check through the brokerage. This information is forwarded to you. You as the lessor are relieved of the initial contacts, but are at all times kept apprised of any and all potential lessees.
The follow-up on references and rental history, et cetera, is the responsibility of the lessor as is the final decision as to the tenant. Hope this is helpful to you.
Kathy Taylor, Coldwell Banker
323-229-4091
kathy@hollywoodrealtorgal.com
1 vote Thank Flag Link Mon Jun 4, 2012
Commission on a lease should be no less than 6% and worth every penny.

Think about it, If you rent your home in 90064 at an estimated $2,500 pr month or $30,000 for a year, your agent will receive a commission of $1,800.00, of which they pay their Real Estate Brokerage firm about 30% or $540.00, this does not include any advertising they may utilize to rent your property, (an LA Times ad cost $90 per weekend). Therefore, your listing agent will receive $1,260.00, less advertising costs, not a great deal of money for several weeks or maybe months of time and effort.

However if another agent, beside the listing agent, brings the tenant, your agent must share his or her commissions by 50% which means your agent will then receive $630.00... less advertising costs, gas and the time to show your property...

Be kind to you agent... respect them if they are willing to take your listing for so little money.
1 vote Thank Flag Link Mon Jun 4, 2012
Hello Paula,
I do a lot of leasing and would be pleased if you considered me for your home. As part of the listing, I place the property in the MLS, add yard sign, make flyers, handle all showings in person at a moments notice, advertise in local print and vast online exposure. With any interested parties, we run credit, check references, employment, criminal records and once we have a well assembled package, I will present it to you. I handle all aspects of getting your property marketed and leased and you can go about your business until I have a ready to go tenant ready for you to, ok.

The fee for leasing with "quality" brokers generally is 8-10% based on the lease term. This covers both our fee and the tenants agents fee. For easy math sake... lets say your rental is 2500/mo and we lease the property for 12 months. Then we would take the 2500/month X 12 months (lease term) which equals $30,000 rental income for the year. @ 10%, the fee is $3000. $1500 for listing side and $1500 for tenants agent.

We can discuss this further in person if you like. I would be happy to assist you.
Sincerely,
Richard "RJ" Kas (SFR, SRES)
"Representing the finest properties from Los Angeles worldwide"
KAS Properties - Coldwell Banker Previews International - Beverly Hills South
166 N. Canon Dr, Beverly Hills, CA 90210
310.859-5334 office - 310.488.9826 mobile - 310-273-0690 fax ATT: RJ
RichardKas@gmail.com - http://www.RJforLA.com - DRE: 01352771
Sellers Buyers Investors Leasing Consulting
1 vote Thank Flag Link Mon Jun 4, 2012
Hi Paula, if you need my help with anything, pricing, or anything just let me know....

Happy to help...

Madelaine Kolisnyk, Realtor
Power Brokers International
310.869.1712
#01377862
0 votes Thank Flag Link Sun Jun 10, 2012
To list your property out for lease, the normal commission is 6-10%, this gets paid out of the deposit. For instance, if your property was $5000 per month with a $10,000 Deposit. A one year lease would be at 10% , $5000 X 12 Months=$60,000 $60,000 X 10%=$6000 Commission due for a one year lease. The tenant would be paying for their 1st months rents of $5000 plus deposit of $10,000 for a total of $15,000 move in costs.
$15.000 -$6,000=$9,000 due to the owner
This is just an example but it shows you have to easily calculate what it will cost to lease your property. There is typically no fee is for some reason your property doesn't lease.

I handle many leases and we pre-qualify all the tenants including running all credit reports, feel free to give me a call and I would love to schedule a time to stop by and take a look at your home. The rental market is RED HOT right now and a great time to get your property onto the market.

Have a wonderful day,
Heather Paul, Realtor
Coldwell Banker
310-923-2334
http://www.HeatherPaulOnline.com
0 votes Thank Flag Link Sun Jun 10, 2012
Dear Paula,
Normally a Realtor will advertise your property for lease,assist in obtaining suitable tenants, handle the contracts and run a credit report on the tenant. The fees for this work are negotiable between you and your Agent. It's a percentage of the yearly lease. If it's more then one year, the Realtor will be paid for all years that the lease is signed for.
I have heard of everything from 10% down depending upon the property and duties involved.
0 votes Thank Flag Link Sat Jun 9, 2012
Hi Paula,

I'm a broker and recommending that you save the money and do it yourself. Having rented the properties I own (even before I got my real estate license), I assure you the process is not that complicated.

The only benefit of working with an agent on a lease is that your listing will get loaded onto the MLS and you won't have to deal with showing your house or signing the lease. If you feel that's worth paying the commission, then by all means go for it. I'd also only use an agent if you have a very expensive house. Prospective tenants looking in the higher price ranges tend to use the MLS for leases over other tools. Also, if you feel overwhelmed about doing a lease agreement yourself, getting an agent might not be a bad idea.

However, if you'd like to save the money, I'd recommend the following:

- Take awesome photos of your place - renters love seeing photos, so go overboard
- Go to WestsideRentals.com and sign up for a landlord account - it's free!
- Go to losangeles.craigslist.com
- Input your listing with marketable facts about your place
- Load your photos
- As the emails come in, have a date/time in mind to show your house so all prospective tenants can see your house at the same time. This is strategic too since it shows your place is in high demand.
- Show your place and have a 1-2 hour window for people to come by
- Print out free applications and credit check authorization forms from Westside Rentals
- You'll have to give both to prospective tenants who ask
- As the forms come in, send it directly to Westside Rentals because...
- They offer free credit report checks too!
- If everything checks out and you've gotten a good vibe from the tenant you've chose, call them up with the good news and sign the lease (tons of PDFs online for California rental agreements)

If you have any other questions, feel free to ask!
0 votes Thank Flag Link Sat Jun 9, 2012
Hello I'm Barbara Mahler with Re/Max Los Feliz:

Our fees are 10% of the annual income, but I can give you a discount of 2% if I rent the property myself.
Feel free to call me when you get a minute. Thanks!
Barbara Mahler 323-906-2623
0 votes Thank Flag Link Thu Jun 7, 2012
Hi Paula,

The rental market is really moving right now, it is a good time to be a landlord. Just to clarify, all commission rates are negotiable and vary by company. Yes advertizing is extremely important but in a competitive rental market with a lease that is priced correctly you will get interested tenants. Proper tenant screening is vital to having a successful rental. Check those references, check those credit scores, get a tenant application! If you would like help in not only finding a tenant but finding the right tenant feel free to contact me.

Sarah Ribnick Kosasky
sarah@areteestates.com
Arete Estates
http://www.areteestates.com
http://www.areteleasing.com
Web Reference: http://www.areteestates.com
0 votes Thank Flag Link Tue Jun 5, 2012
Hi Paula,

I run the leasing department at Wellman Realty Company/ Wellman Property Management, Inc. We have a customizable leasing service depending on your needs. I lease units all over Santa Monica, Mar Vista, West La and the greater Los Angeles area.

Please call me or send me an email if you want me to send you the specifics of my service. I am also happy to meet with you. I live right in that area and I could easily meet for a consultation if my services suit your needs.

All the best,

Jessica M. Acker
Wellman Realty Company
Wellman Property Management, Inc.
http://www.jessica.ismyreagent.com
(310) 828-3132 Office
License # 01894323
0 votes Thank Flag Link Tue Jun 5, 2012
Hi Paul-

We charge 6%. For that you receive tenant applicants that have been pre-screened for employment history, leasing history and credit history. We also conduct a move in move out walk- through so that there are no questions about what was and was not in working order at the time of move-in. You can check us out at
LauraAndJackDavis.com
0 votes Thank Flag Link Mon Jun 4, 2012
The question that you may want to be asking yourself is do you want an agent to simply market to find you a tenant, and screen them (background checks, credit checks, judgment and eviction verification, employment and income verification).

Or if you want a Property Manager who will also take the phone call at 1 am when the toilet runneth over, or the window is stuck open, how about chasing late rents or worse assist you with an eviction should the tenant turn bad?

If you have questions about successfully leasing your real property, that extend beyond just finding a tenant- like which type of insurance should you have and should you require your tenants to have any insurance, or who is liable if the tenants dog bites the neighbor.... Feel free to give me call.

Otherwise, you should expect to pay a listing agent 6-10% of the yearly lease rate.

Best of luck!

Aaron Belliston
323-839-4623
0 votes Thank Flag Link Mon Jun 4, 2012
6% of the annual lease which compensates both listing and leasing agent. A good leasing agent can screen the tenants, draft terms to address your interests and advise re deposits, restrictions,....
0 votes Thank Flag Link Mon Jun 4, 2012
Hello Paula,
I can help you find the right tenant for your home, Typical rate for leasing is 6% of the whole lease amount. I can send you comps and information if you send me your email.
Good Luck
Ellie Salemnia
Elahehsal@yahoo.com
Keller Williams BH
0 votes Thank Flag Link Mon Jun 4, 2012
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