Marc, Home Owner in Miami-dade County, FL

what is the broker fee for rental?

Asked by Marc, Miami-dade County, FL Tue Jul 23, 2013

I am trying to rent my condo in downtown Miami. what is the broker fee for rental? who pays for it? Is there a renewal fee if tenant renews the lease after the first year?

Help the community by answering this question:


Fees are negotiable from 1 month rent to 10% of annual gross rent.
However, lesser incentive to agents means less showings, so most landlords choose to pay 10%.
The main thing when renting is to prepare the place for rent - cleaning, fixing and staging, if possible.
Also very important - to market your condo in downtown Miami very aggressively on the internet - so when picking your agent ask questions re. their marketing plan. More pictures, a video on UTube, showcasing on most popular real estate sites (Big 4)...

The renewal fee is also negotiable. It is built into the standard listing agreement, so if you don't want to pay for the 2nd year - you got to remove it in the listing agreement.

To save more money - why not rent for 2 years, instead of 1 year? This way it's no vacancy period, no commissions to agents, no paint job after tenants move out etc. Many people would love to rent for 2 years. You'd need to hire an attorney to prepare the 2 year lease though, as real estate agents are not allowed to fill out 2 year leases - only 1 year. The cost should be around $350 for the attorney to do the lease - unless there are a lot of add-ons to the standard lease form (this takes more time to do).

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
0 votes Thank Flag Link Wed Jul 24, 2013
Ann Ryan is the only one out of this entire thread of people who has not violated the law.


The fee is something that you will need to negotiate with the broker who will represent you and list your property. While there are certain commonalities among broker offices in terms of what they all charge, no realtor can (or should) tell you "most realtors charge x". That is against the law.

Also, whoever lists and promotes your property should do it with the same emphasis, regardless of what commission level you agree on. A higher split might attract more realtors who lurk on the MLS, but the truth of the matter is that the MLS is just one tool to promote... A good realtor who is working for you should use all necessary means to attract possible tenants and/or realtors. And most of these other tools do not have to disclose fee for cooperating broker... Therefore, the argument about the fee for the other broker is invalid.

i hope this aides you in choosing the right broker. Good luck to you.
2 votes Thank Flag Link Sun Jul 28, 2013
Marc, I am going to obey the law, and not discuss commissions, however, the most important thing is to find a good tenant. You want someone with no criminal history, a steady source of income, and a likelihood to stick around for several years. Make sure you invest the time and energy in finding the RIGHT tenant.
2 votes Thank Flag Link Wed Jul 24, 2013
Yes, Mack - companies CAN have a name with their commission as part of it.....they also CAN advertise their commissions as part of their marketing campaign, that's perfectly the anti trust law's purpose is to increase and encourage competition... not limit it.

Advertising a company's business plan/commission is totally different from having competitors engage in discussions and statements on public forums, like this, in regard to what they think others are charging as a "normal rate".

What cannot be done, and, yes, can be seen as illegal, is this open discussion among agents from different companies, especially where the terms "usual, customary, typical, common or standard are used to describe any commission.
And, you certainly don't want to be seen stating: "EVERYONE gets this XXX %"!!!!

This may inadvertently influence another Broker to charge more or less if they see others claiming a particular % is the area "standard".
There's that potential "price fixing" offense - considered to be a "per se" offense....where you really can't say: "Oh judge, I didn't mean it" have no defense........ and fines can be very high.

For those who care - go it.......or, do what I did - take a continuing education course on this very will be very informative.
1 vote Thank Flag Link Mon Jul 29, 2013
The level of ignorance among agents when to comes to understanding (and violating) the Federal Anti Trust laws is very disheartening!

Ana Levy is correct .
Agents should NEVER discuss commissions among themselves, or in a public forum. Words that should never be used in regard to commissions are:

customary..... standard..... usual...... or expected......and to say: "everyone charges this or that"... is simply illegal"!!!

"ALL commissions are negotiable" is the only proper and LEGAL response one should offer.
I suggest those of you who are clueless about this speak to your Brokers (hopefully, they know the laws), or call your state RE Commission or local board office and ask someone who is knowledgeable for clarification.

To help get you started - Here is an excerpt from an online article on this very topic:

"Anti trust laws prohibit agents from discussing commission percentages in public. Commissions are negotiable.
Agents within a brokerage firm are allowed to set their own commissions based upon their business models and market value of services. This may vary from company to company.
Discussing commissions openly is a violation of the Sherman Anti Trust act since we are among mixed (different) companies."

Any comments that state, or even imply, there is a standard commission can be seen as an attempt at PRICE fixing, even if there was no intent to do so!

Read up on the Sherman Act violation cases and you will see very few actually had to do with a conspiracy to fix prices and more of them had to do with discussing them like some of you are doing here.
1 vote Thank Flag Link Sun Jul 28, 2013
haha Alan - funny! No wonder my head is sore today!
So why didn't you ride in on your white horse and give me a hand? :)
I know, I know - it's a losing battle!
Flag Mon Jul 29, 2013
you go girl! (what is the sound of one's head being banged against a brick wall?)
Flag Mon Jul 29, 2013
Hello Marc, I do quite a good number of rentals and can certainly discuss a commission and renewal commission that will be acceptable to both. Rentals are very scarce and prices rising due to the demand. The higher commission is not going to necessarily increase the chances of getting your property rented but the exposure and the cooperation of the listing Broker you decide to hire.
1 vote Thank Flag Link Sat Jul 27, 2013
Hi Marc!! It is up to the landlord. Some landlords just let it roll into a month to month lease after the first year. It all depends on how you want to handle it.
0 votes Thank Flag Link Mon Jul 29, 2013
Hi Marc!! Commissions are negotiable. Broker's Admin. fees differ between brokers. Generally, the first month rent is considered the commission used to be split between the tenant's agent and the landlord's agent. My broker's admin. fee is $295; just to give you an idea of what you may be paying.
0 votes Thank Flag Link Mon Jul 29, 2013
Tatiana, it's not "against the law" to discuss commissions in public, but it has been determined that price fixing IS an anti-trust violation.

Now, we all know that there is a "standard," although we pretend that there's not. Fannie Mae has basically said that there is, in fact, a standard, and if the commission on a short sale does not exceed six percent, they'll pay it. We say that commissions are "negotiable," but that is not synonymous with "ask for a discount and ye shall receive."

Not only that, but there are companies that have their commission in their name! Oh, my, goodness! How could they!!!
0 votes Thank Flag Link Sun Jul 28, 2013
Thank you for the reference link!
Greatly appreciated.
0 votes Thank Flag Link Sun Jul 28, 2013
my pleasure!
Flag Sun Jul 28, 2013
Ana Levy,
Could you please give me a reference link to illegality or breaking the law in explaining what a broker charges for services and what is the industry standard according to ones experience .I would like to look more into it.
0 votes Thank Flag Link Sun Jul 28, 2013
try reading up on the Sherman anti trust laws - you do need to educate yourself on them!
Agents should never engage in public discussions - or even among themselves - in discussions of commissions as it may be seen as an attempt at price fixing, even if the intent was not there. ALL commissions are negotiable is the only response an agent should have in regard to commissions questions. An agnet shoe NEVER refer to commissions as "standard, customary, usual or expected" - NEVER!
Try reaching out to your Broker or your state RE Commission for clarification.
Flag Sun Jul 28, 2013
I hope you geyt the answer. This is negotiable.
0 votes Thank Flag Link Sat Jul 27, 2013
Everyone charges the same rates, 10% of the yearly rental fee. You can email me if you would like my assistance.

Alberto Baca
The Keyes Company
0 votes Thank Flag Link Tue Jul 23, 2013
you really should delete this answer!
"Everyone charges" you never heard about the anti trust laws!
Flag Sun Jul 28, 2013
Broker charges 10% of the annual amount "rented" unit or one month rent amount which is split 50% to listing broker, 50% to prospective tenants agent . This is the industry standard . We do not charge any renewal fees if tenant decides to stay after 1st year.
Let me know if I could help you list your condo.
Tatiana Kolomiets 305.987.7470
Realtor @ Paz Global inc
Web Reference:
0 votes Thank Flag Link Tue Jul 23, 2013
Hello Marc: Everything is negotiable ... customarily it is 10% of the annual gross rented (not listed) price = 0.5 % for the listing broker - your agent, and 0.5% for the broker representing the tenant, but it can be too a slightly less amount of money ... half (1/2) of one month's rent. Call me at your earliest convenience and we can talk some more about what is truly convenient for you. Cell: (305) 588-4420 Thanks! E!
0 votes Thank Flag Link Tue Jul 23, 2013
I hope you realize that you just said that half a percent goes for each broker...

5% =\= 0.5%

What you meant to say is that half of the 10% is for each broker, which comes to 5% for each...
Flag Mon Jul 29, 2013
At MIA Living we don't charge renters any fees. The landlord pays our fee. You can call us at 305-999-5335 if you need help finding a rental property.
0 votes Thank Flag Link Tue Jul 23, 2013
Hello Marc:

The customary fee is 10% of the yearly rental amount. With regard to the renewal fee, this is based on broker practice.

Iris I Romero
0 votes Thank Flag Link Tue Jul 23, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer