An agent who finds a tenant for a listed rental split commission with the listing agent just like sales transactions or earn comm from the tenant?

Asked by Deborah Pyburn, Atlanta, GA Wed Oct 2, 2013

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Suzanne MacD…, Agent, Morristown, NJ
Thu Oct 3, 2013
I do a lot of rental work in New Jersey. Most of the landlords I work with will ask the tenant to pay the commission, which is generally split between the listing agent and the tenants agent. The reason is in a relocation situation, the relocation company will pay the commission on behalf of the tenant. However, the commission can be made part of the negotiations. If a tenant makes it worthwhile for the landlord, for example by agreeing to a two year lease, they can often convince the landlord to either pay or split the commission with them. Bottom line is, all commissions are negotiable, including rental commissions.
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Jeanne Feeni…, Agent, Basking Ridge, NJ
Thu Oct 3, 2013
John is spot on - same thing is true in NJ and any market where the rental market is strong. The commission is split between the two brokerages in the transaction but who pays that --- tenant, landlord or both, is a matter of what has been agreed to by the landlord when the listing is taken. It can be changed along the way, and here in NJ it is sometimes negotiated at time the lease is offered.

Good luck to you,
Jeanne Feenick
Unwavering Commitment to Service, Unsurpassed Results
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John Souerbry, Agent, Fairfield, CA
Wed Oct 2, 2013
Rental listing commissions don't always work like sales listings.
In my area the rental market is healthy enough that landlords seldom offer a commission. As a property manager, I've had dozens of agents ask for a commission in return for giving me a strong tenant application, but I've never had to pay one. Our local MLS accepts rental listings and there is a space for publishing a commission for the tenant's agent, but I've always left that blank and stated in the notes that no commission is offered.
If landlords in your area don't offer commissions, it's best to disclose to renters up front that you will work for free if no commission is offered or that you expect them to pay your commission. I know agents who offer rental-finding services for a flat fee that is paid by the tenant when an acceptable rental is found and the client's application is approved.
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Shanna Rogers, Agent, Murrieta, CA
Wed Oct 2, 2013
Hi Deborah,

I'm not sure in your area, but in mine, the commission is listed in the MLS and it is usually paid by the seller.

Shanna Rogers
SR Realty
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