rent fee from landlord to broker?

Asked by Mama, 07093 Sat Sep 27, 2008

Hi,
i just want to know if i being a landlord put up my place for rent with an realtor what do i pay them? Is there a state requirement for paying anything to the realtor? Does the tenant pay that fee? do i give one month rent or is it a set fee?

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3
Laura Gianno…, Agent, Manahawkin, NJ
Sun Sep 28, 2008
In most cases the landlord pays one month rent (the first) to the broker listing the unit. It is then split with the broker bringing the tenant. As stated previously, a rental listing is just that, a listing. So it is negotiable between the landlord (lister and the broker).
0 votes
Joan Prout, , Basking Ridge, NJ
Sat Sep 27, 2008
Mama,

You need to speak to your listing agent about this. If your sale listing has not been canceled or expired, you can't rent it on your own or change brokers.

Payment to the REALTOR is considered commission. NJ states that all commissions are negotiable. In the area where you live, real estate fees to the real estate agency are often paid by the tenant. However, just as you've found with trying to sell your unit, you need to be aware of the competition you face, both from properties offered for rent by agents and those offered privately. The fee collected on a rental both reimburses the agent for the expense of marketing the property, it is how the agents earn their living. Someone needs to pay it. At the same time, the monthly rent for a large, luxury apartment is quite high. A new tenant usually must come up with the equivalent of 3 - 4 months' rent. (The 1st month's rent, up to 1.5 months as security deposit, and whatever you and the agent agree upon. Also, I'm sure the Galaxy have move-in fees). Your unit will look far more attractive to potential tenants if you cover all or part of those expenses. Also, if you choose to have your agent manage your rental for you, that is a separate fee.

To summarize, all real estate fees in NJ are negotiable, by law. Who pays them is something you should also discuss with the agent and weigh whether expecting the tenant to pay the whole fee will limit the rentability of your unit.

Joan Prout, MBA
Broker Associate
RE/MAX Villa REALTORS
306 Grove Street
Jersey City, NJ 07302
201-946-2700 x310
800-671-0596 x1 (direct)
Joan@JoanProut.com
Web Reference:  http://www.JoanProut.com
0 votes
Gina Chirico, Agent, Fairfield, NJ
Sat Sep 27, 2008
Mama,

If you list your rental with a realtor, a fee must be paid to the broker (usually 50% to the listing broker and 50% to the selling broker). The realtor fee is typically equal to one month's rent although I have seen listings that request 10% of the total lease price, etc. The realtor fee can be paid by the landlord, the tenant or split between both. Keep in mind that if you want the tenant to pay the commission it is a huge sum the tentant must come up with out of pocket (first month's rent, 1 1/2 month security and then the rental fee equal to one month's rent). When I am working with renters, we typcially see the rentals wherein the landlord is paying first before moving to the rest.

So to answer your question, when you list with a realtor, if the place gets rented...the broker gets paid.

Good luck.

Gina Chirico, Sales Associate
Prudential NJ Properties
973-715-1158 cell
973-992-6363
GinaChirico@PruNewJersey.com
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