In this market, how usual is it for the landlord to pay renter's commission when renting out their property?

Asked by Wpease, New Jersey Sat Apr 18, 2009

An acquaintance just rented a house and did not have to pay the realtor. But local ads seem to ask the renter to pay. Isnt that a bit contrary to norm, or at least since this market isnt the norm and houses arent selling, isnt it usual for the opposite? thanks,

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Tej Bhatnagar, Agent, Livingston, NJ
Thu Jul 23, 2009
Hi Wpease,
In this area it is more common for the tenant to pay the realtor commission. When the landlord does pay the commission, I make my clients more aware as to why? Has it been listed for a long time? Why hasn't anyone rented it as of yet? Is there anything wrong in the neighborhood, home, etc. Are there a lot of rentals in the area that aren't renting and the landlord is adding this as an incentive? These are some things to consider.
Hope that helps.
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Helene Jeane…, Agent, Metuchen, NJ
Wed Mar 14, 2012
Most landlords in my area will ask the tenant to pay the fee. Notice I specify "my area." Real Estate is LOCAL. Practices may differ not just from state to state but between towns or counties. I always negotiate for my clients.
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Myra Gouger, Agent, Las Vegas, NV
Fri Jan 7, 2011
I can't speak for New Jersey where you are, but I would have to say it would be seriously unusual for the landlord NOT to pay the renter's agent's commission. The commission for the renter's agent is normally and usually paid by the homeowner.
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Jeanne Feeni…, Agent, Basking Ridge, NJ
Fri Jan 7, 2011
Hi there, much depends on the competing listings - but what I see is that often the landlord will begin with commission being paid by the tenant and then possibly be willing to negotiate when a lease is presented, or change the terms to enhance the listing in an effort to move the rental. If doesn't hurt to try to push back - if you are a strong tenant offering good terms, then the landlord may be willing to negotiate commission to 50/50 split or perhaps even paying it entirely.

Jeanne Feenick
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Charles Blum…, Home Owner, Wayne, NJ
Thu Jan 6, 2011
I have been in real estate property management for over 30 years. Throughout the entire time, it has been customary that the tenant pay the commisssion on residential properties in this area. However, in todays environment, there are landlords (including myself) who will pay the commission to the broker
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Jeanne Feeni…, Agent, Basking Ridge, NJ
Mon Apr 20, 2009
Hi Wpease, I see a combination in my market - generally landlords will begin by pushing the commission to the buyer side, but over time, be more open to negotiating this point with a split. There is no question but that landlord picking up commission is a strong incentive to tenants considering options. Think about the initial expenses for the tenant -- at signing, they are writing checks to cover first months rent, security deposit usually equal to a month and a half's rent...then add to it the commission equal to one month's rent if tenant pays full commission - that's a mountain of money to money.

If your goal is to rent quickly, offer to pay commission in whole or in part and your property should rent quickly. I just listed a home for rent in Berkeley Heights, commission to be paid by tenant, and we've had three calls in the first two days on the market. Rentals continue to move well and if you are in a desirable community - and Morristown is for sure - then you should be fine either way.

Good luck and best....
Jeannie Feenick
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John Sacktig, Agent, New Jersey, NJ
Sun Apr 19, 2009
I only take rental listings where the landlord pays commision, that is common in Central NJ.

The rentals that stay on the market forever are the tenant pays / tenant splits commission rentals.
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Kenneth Verb…, Agent, PRINCETON, NJ
Sat Apr 18, 2009
Central Jersey area I cover typical for landlord to pay. North Jersey I have seen it split where land lord pays listing agent and renting agent is paid by tenant.
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Chris Coccia, Agent, East Hanover, NJ
Sat Apr 18, 2009

I am a local realtor from East Hanover. I deal with rentals in and around the Morristown area and it is really a mixture of both the tenant and/or the landlord paying the fee. Most of the time it is market driven negotiating point. If the product is good, the unit is in good condition and it is priced fairly - you may be more inclined to pay the fee. The landlord is more motivated to pay the fee when there is some issue or he is more motivated to get the place rented quickly.

If you need a list of available units and you would like us to give you some options where the landlord pays please feel free to call my office

Coccia Real Estate Group

Chris Coccia
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