Is it common to pay a RENEWAL commission to the R.E. agent that originally listed the property to RENT.

Asked by Bgd, Mount Laurel, NJ Wed Feb 1, 2012

I understand that whatever I agree to in the Listing Agreement is binding. I just want to know what is the usual / common practice. If so, is it usually a full month's rent?

Help the community by answering this question:

+ web reference
Web reference:

Answers

9
allan erps,A…, Agent, Pearl River, NY
Fri Feb 3, 2012
In my area there is no such thing. You can rent for a month or 10 years and pay only one fee. I find the "renewal fee" to be extreme and should have been discussed/disclosed at the lease signing.
0 votes
Jeanne Feeni…, Agent, Basking Ridge, NJ
Fri Feb 3, 2012
I handle it the same way Diane does and I think that is very fair. Be sure your agreeement specifies what you are comfortable with.

Best,
Jeanne Feenick
Unwavering Commitment to Service, Unsurpassed Results
0 votes
Diane Glander, Agent, Spring Lake, NJ
Thu Feb 2, 2012
It is common practice. Some agents enforce it more than others. Being a landlord myself, I believe that landlords should pay once and I tell my landlords this: You've paid me for bringing you a tenant. If you decide to renew the lease on your own, I won't come back and ask you for a renewal commission for the next year. However there are 2 exceptions: if the tenants agent wants to be paid and if you ask me for help with the renewal.
Web Reference:  http://www.dianeglander.com
0 votes
My NC Homes…, Agent, Chapel Hill, NC
Thu Feb 2, 2012
Typically the agreements you refer to do require you to pay a renewal commission if the agent procurred the tenant. One months rent is about 8.5% which actually sounds reasonable. I've know these rates to be as high as 12.5%.

Take a look at your paperwork to see exactly what's written.
0 votes
Jeanne Feeni…, Agent, Basking Ridge, NJ
Thu Feb 2, 2012
Some brokerages build that right into their listing agreements. And on the other side of the equation, some brokers encourage agents to push for this as renting agents. My personal view is that if I have to make my money this way, then I should find another line of work. But you are wise to bring it into the discussion and come to an agreement with your agent and ask her to cover the point with the renting agent. What I find is that if offer to excuse commission if the lease is renewed, the other agent generally follows course. But if it isn't discussed, it may well be in the lease.

Good luck to you!
Jeanne Feenick
Unwavering Commitment to Service
0 votes
Jody Pagliuso, Agent, Medford, NJ
Thu Feb 2, 2012
Hello,

Some agents do ask for it, and some agents do not.

If I can help you with any other questions, please feel free to contact me.

Thank you,

Jody Pagliuso
0 votes
Wayne Odenbr…, Agent, Mountain Lakes, NJ
Wed Feb 1, 2012
Some Agents will, others will not ask foir it. I have never asked for one unless I am involved in drawing up the new lease paperwork
0 votes
John Sacktig, Agent, New Jersey, NJ
Wed Feb 1, 2012
Yes, it is common for there to be a renewal fee. and it is int he listing contract and the usually the lease.

I do place a 1 month rent commission on a renewal, as the landlord wants new leases drafted and and contracts signed..
0 votes
What a complete waste. Why would a landlord pay a realtor to RENEW a lease. Making a few tweaks to the contract takes no more than 20 mins. Complete rip-off to charge a renewal!!
Flag Tue Dec 8, 2015
Don Tepper, Agent, Burke, VA
Wed Feb 1, 2012
Sorry, but I'd spent 10 minutes answering your earlier question on this topic . . . and when I tried to post the answer, you'd deleted it.

Live and learn.
0 votes
There are several reasons why a landlord would pay a realtor to RENEW a lease.
1. If the property was listed on the MLS and it states Renewable in the listing, that's a reason. This would be considered a Renewal Commission.
2. If the landlord had the listing agent relist the property with the intention on renting to a new tenant and expected to pay a commission, then paying a commission would happen regardless.
3. If the tenants agent finds them another place to move to then the listing agents newly acquired tenant may have to go through a new screening and approval by association if one is required, which takes time. So at this point the landlord is at an expense for not only Cost of rent (getting the place rent ready), but there is Loss of rent (cost associated with the days not rented). At this point it would be cheaper just to pay the Renewal Commission.
Flag Sun Aug 28, 2016
Search Advice
Search
Ask our community a question

Email me when…

Learn more