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leasingcoppe…, Home Buyer in Coppell, TX

how much to pay a residential leasing agent if they bring a renter to a lease by owner?

Asked by leasingcoppell, Coppell, TX Thu Jul 10, 2008

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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.
Web Reference: http://www.SumnerRealty.com
1 vote Thank Flag Link Sat Jul 19, 2008
I agree with Cory. That is the going rate. Is you have an agent that represents you, they will do background check and credit checks on potential renters.

I'll be glad to help if you need. My husband and I manage many properties for out of state clients as well as out of the country.

Naima
214-289-8555
naima@sumner-realty.com
1 vote Thank Flag Link Thu Jul 10, 2008
It is true, the "going rate" is 50%. However in real estate, EVERYTHING is negotiable.

Usually if the tenant renews for another year, a bonus is paid to the property manager.

Good luck!

Dominick
0 votes Thank Flag Link Sun Jul 13, 2008
0 votes Thank Flag Link Sun Jul 13, 2008
Great, thank!. One more question, assuming we do a 2 yr lease. does the comission change? What about any renewals after the original lease?
0 votes Thank Flag Link Fri Jul 11, 2008
50% of one months rent if you are handling the marketing yourself, and they are only brining you the tenant. If they market typically we charge one month's rent and split with the second agent if there is one. I live in Coppell and can help you if you need it.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Fri Jul 11, 2008
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
50% of one month's rent is pretty typical.
0 votes Thank Flag Link Thu Jul 10, 2008
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