How does realtor get paid rental

We've bought property through a realtor before, so we're pretty confident in how that works. I'm not sure though how the realtor would get compensated when looking for rentals? Do we pay them a fee for their services?

Or do they get some kind of finders fee from the landlord? Real estate agents are generally paid by the seller for a house sale, and by the landlord for a rental situation. Landlords go to agents to use their services to list the property, find new tenants, and in some cases even manage the property afterwards.

Generally the listing agent submits the property to the big listing services, and the showing agents search those services to find properties to show their clients. Agents who list properties will often also post them to general search sites and Craigslist. This way, more prospective tenants can see the property, including those who are searching without an agent. This knowledge is important to have when you are looking for a place. Your agent will only show you properties listed by other agents, not properties listed by the owner, because then they'd get no commission.

Openly communicate with potential realtors during your realtor hunt that you are not looking to pay commission. In these kinds of lease transactions, after signing the agreement allowing the agent to represent the tenant, the realtor and tenant work together to find a property that checks off as many boxes on the tenants wants and needs list as possible. The realtor will help guide the tenant around any pitfalls along the way and breeze through the application process and screening process.

In big cities, the vacancy rate can be near zero and the best units go fast- within days or hours. Realtors would have the know-how to navigate through the tumultuous conditions to get the renter a unit that pleases them.

Sometimes relocating can be a good reason to use a realtor to find a space to rent, they will know more about the area and market than the future renter would. The realtor would also know about local laws. They would be able to tell renters when security deposits and evictions are illegal. A good realtor also has connections and expertise, so they are more likely to know about unlisted properties and would be able to negotiate.

So, yes, there are many situations in which realtors can help renters! Given these factors, the fee paid to the realtor is worth the investment. If there are many units available for rent in an area, a renter might be better off putting in the time to research rental units online. They can compare prices, amenities, locations, and deals themselves on sites like Zillow, HAR, Trulia, Rent, and other sites.

Landlords who have no problem getting applicants that want to rent their properties have no interest in paying realtor fees if they have other applicants without those fees. The landlord also will not want to negotiate the rent price. In this case, they have to pay the realtor, or the realtor is doing this work for free! Before agreeing to pay the rental commission, verify that this is the custom in your area. A real estate management company is not a real estate broker. Management companies handle the day-to-day operations of renting properties, the repairs, complaints, collecting rent and finding tenants.

They charge the landlord a percentage of the monthly rent to perform these duties, usually 10 percent. The tenant does not pay these fees. Many cities have companies that produce lists of rental properties available. Some realtors can also charge the landlord a commission based on the yearly amount collected. Disclaimer: Answers provided are just opinions and should not be accepted as advice. Related Questions. Are tenants responsible for cleaning carpets?

On May 17, How can a renter determine if an apartment or condo has flooded. On Jun 07, What do you look for in a property management company? On May 02, Property Management or Realtor? On Mar 21, View more Questions. Related Blog Posts in Property Management. Find a Pro. Search Real Estate Professionals. Your question. Add a little more detail optional. Choose a category. Make sure your question follows the community guidelines. In order to post answers, you must be at least a silver level consumer.

Your Detail:. Sign up for the Real Insight to receive informative articles, local market statistics and helpful information tailored to you.