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 if 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
Generally, an agent will charge 8-10% of the lease term... meaning if it were a 12 month lease, then the commission would be, say 10% of the total rent that would be collected for the 12 month period.... Best example... $1500/month rental on 12 months is $18000. A 10% commission would equal $1800. Agents would handle all showings, screenings, applications, credit, reference and employment checks, etc and generally qualify the applicant and if all looked good, then present a quality package to you ready for your sign off. If you are looking for a leasing agent, I have a lot of experience and I would be happy to assist you.
The compensation paid to handle a rental as a listing agent includes the portion provided for the leasing agent as well. In other words, the agent representing the landlord gets 50%, and the agent representing the tenant gets 50%. In most cases , 100% is paid by the landlord. A good quality listing agent receives 8-10% of the total amount of 1 year's lease, of which 50% goes to the leasing agent. So, on a $1,000 per month lease, the total lease for 1 year is $12,000. 10% of that amount is $1200, $600 of which goes to the listing agent and $600 goes to the leasing agent. The listing agent markets the property, advertises, and shows the property to prospective tenants, and runs credit checks and investigates the prospective tenant. A good rental listing agent earns every penny!
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My primary question is, what do you mean by 'handle a rental'?
Do you mean list it in the MLS? Is your agent going to do all the property management for the property once it is leased?
In that area of LA the most common commission rate paid is between 5% and 6% of the first years lease amount. The total commission is typically split with the agent whose client rents the place. If you charge $2500 per month for the rent, times 12 months, times 6%, you would pay a commission of $1,800.
You can also offer a flat fee as commission - say, $1,200, or any other amount you can negotiate with your agent.
Hope that helps -