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Realtors fees on a rental

Realtors fees on a rental

Old Jul 8th 2011, 9:14 am
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Default Realtors fees on a rental

Hi All,

I am going over to Columbus, OH next week for a house hunting trip. We will be assisted by a relocation agent and a realtor. Our relo agent has told me that I 'probably' will be liable for the realtors costs, which will be around a months rent, in addition to the standard months rent deposit. This seems pretty odd to me, given that I would expect the owner to pay the realtors fees, as typically happens over here.
Just wondering if this was general practice in the USA - the agent did say that this is the way the market has gone recently due to there being a shortage of rental houses, etc.

Thanks!
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Old Jul 8th 2011, 10:38 am
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Default Re: Realtors fees on a rental

Originally Posted by simon_pieman View Post
Hi All,

I am going over to Columbus, OH next week for a house hunting trip. We will be assisted by a relocation agent and a realtor. Our relo agent has told me that I 'probably' will be liable for the realtors costs, which will be around a months rent, in addition to the standard months rent deposit. This seems pretty odd to me, given that I would expect the owner to pay the realtors fees, as typically happens over here.
Just wondering if this was general practice in the USA - the agent did say that this is the way the market has gone recently due to there being a shortage of rental houses, etc.

Thanks!
In my experience it is the "owner" of the property who pays the realtors fees you just have to give a deposit plus first months rent in advance - whatever your arrangement is. You will have a contract so it should be clear. However I see you have a "relocation agent" as well so maybe he means you also have to pay his fees as well....
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Old Jul 8th 2011, 2:24 pm
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Default Re: Realtors fees on a rental

I saw this in New York City, but I've never encountered it anywhere else. And even in NYC there are many options to avoid it, by using no-fee finders (who only charge the owner) or just by using Craigslist.

I realise that might be difficult if you aren't familiar with the area.

I suppose it comes down to the old thing of money or time... if you have the time, you can do it cheaper, or you pay for someone to do it for you.
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Old Jul 8th 2011, 3:16 pm
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Default Re: Realtors fees on a rental

In some states/areas you are responsible for the first and last month's rent or the first month's rent and a security deposit and for the agent, if it is realtor and not the management company renting out the apartment, at least one month's rent.

It is a renter's market ... fewer rentals available then the demand. So as the renter, if you want the place, you pay the fee.

Residing outside of Manhattan itself, I can tell you that it applies to the suburbs of NYC as well.

Originally Posted by simon_pieman View Post
Hi All,

I am going over to Columbus, OH next week for a house hunting trip. We will be assisted by a relocation agent and a realtor. Our relo agent has told me that I 'probably' will be liable for the realtors costs, which will be around a months rent, in addition to the standard months rent deposit. This seems pretty odd to me, given that I would expect the owner to pay the realtors fees, as typically happens over here.
Just wondering if this was general practice in the USA - the agent did say that this is the way the market has gone recently due to there being a shortage of rental houses, etc.

Thanks!

Last edited by Rete; Jul 8th 2011 at 3:19 pm.
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Old Jul 8th 2011, 4:05 pm
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Default Re: Realtors fees on a rental

Originally Posted by simon_pieman View Post
Just wondering if this was general practice in the USA
It certainly isn't unheard of but, like most things in the US, it varies from place to place and is almost certainly negotiable - at least to some extent.

If you are using a realtor (or any other professional for that matter) you should have a written agreement with them that spells out up front exactly what you can expect from them and what you are going to have to pay.
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Old Jul 8th 2011, 4:26 pm
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Default Re: Realtors fees on a rental

We didn't pay any realtor's fees, just a security deposit on both places we rented.
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Old Jul 8th 2011, 4:27 pm
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Default Re: Realtors fees on a rental

Originally Posted by Sheepdip View Post
We didn't pay any realtor's fees, just a security deposit on both places we rented.
You're in SC not Ohio ;-) Did you use a realtor or go through the management company of the complex unit?
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Old Jul 8th 2011, 5:03 pm
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Default Re: Realtors fees on a rental

Everything is negotiable. All depends on the local market.

In Boston, you can expect to pay up to 3 months worth of rent as a fee, way out in the burbs it can be half a months rent as a fee. One month is standard.

Plus the first/last months rent, up front, along with 1-3 months worth of rent as a returnable deposit. All up front.

Sometimes the landlord will pay the fee, sometimes not, sometimes it'll get split between you.

If you're moving here for a job, you really should have negotiated this fee as part of the relocation package.
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Old Jul 8th 2011, 5:12 pm
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Default Re: Realtors fees on a rental

Originally Posted by Rete View Post
You're in SC not Ohio ;-)
I know, it's great isn't it
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Old Jul 8th 2011, 5:59 pm
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Default Re: Realtors fees on a rental

Originally Posted by Bob View Post
Everything is negotiable. All depends on the local market.

In Boston, you can expect to pay up to 3 months worth of rent as a fee, way out in the burbs it can be half a months rent as a fee. One month is standard.

Plus the first/last months rent, up front, along with 1-3 months worth of rent as a returnable deposit. All up front.
Having recently moved to Boston, i used an agent to assist me in my first Rental. Got a great 2 bed loads of space. There was a fee for this, however it was picked up by the landlord and not myself. Having scoured Craigslist at loads of options, i decided that i wanted a no fee approach. Reason. I still had to put down a 1 month deposit and 1 month security and 1 month rent prior to moving in. Rent in Boston is not Cheap.

If you check no fees on Craigslist, the agents that advertise under there will not charge you, although they obviously have to charge someone
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Old Jul 8th 2011, 6:38 pm
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Default Re: Realtors fees on a rental

Originally Posted by DavidLemon View Post
Having recently moved to Boston, i used an agent to assist me in my first Rental. Got a great 2 bed loads of space. There was a fee for this, however it was picked up by the landlord and not myself. Having scoured Craigslist at loads of options, i decided that i wanted a no fee approach. Reason. I still had to put down a 1 month deposit and 1 month security and 1 month rent prior to moving in. Rent in Boston is not Cheap.

If you check no fees on Craigslist, the agents that advertise under there will not charge you, although they obviously have to charge someone
Indeed...a friend of the missus who got a nice pad downtown had to pay a 3 month fee, along with a 2 month deposit originally, but negotiated a split in realtor fee before signing...that's a mental sum of cash up front.

The thing to watch out for on craigslist, especially the no fee ones, a few of them can be scams or a waste of time dead listings, who'll then try and punt you to other listings they have instead which do have fees. Can be such arseholes
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Old Jul 8th 2011, 6:55 pm
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Default Re: Realtors fees on a rental

Hi

I have to say this....I have been in US for 10 years, a home owner/landlord and a renter, in NJ and CA and I have only seen home owner pay the reator to rent the place.....

1. Are you being relocated by your company or have YOU hired the relo agent?..if it is your company, you should be letting them know the agent is trying to get you to pay.

2. If YOU have located an agent do this: Ask the agent to show you around the neighborhoods. DO not sign anything unless they ask. They cannot legally take monies from you just to show you around.

3. Before I went to a new place I would: Use this forum to seek out others who already live in the neighborhood. Look at greatschools.org and look for the public schools rated 8-10 to find the best neighborhoods (they usually go hand in hand). Do a lot of research yourself. Once the agent has shown you around, cut them loose and use craigslist.org..here is the link to columbus market....enter the number of beds you need and get a good idea of what you should pay per sq foot in that market....http://columbus.craigslist.org/apa/. If you do not feel comfortable finding a private rental....use a local columbus rental management company instead and check they charge the landlord, not you.

4. If you can do all this yourself..do it. Please do not assume agents/realtors in the USA are working in your best interests...many times they have seen you coming (they will ask...'are you new to USA, are you new to area'...be very wary and be very assertive).

Good luck!
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Old Jul 8th 2011, 7:11 pm
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Default Re: Realtors fees on a rental

Originally Posted by karenmillvalley View Post
4. If you can do all this yourself..do it. Please do not assume agents/realtors in the USA are working in your best interests...many times they have seen you coming (they will ask...'are you new to USA, are you new to area'...be very wary and be very assertive).
That's because they're after easy money.

It is very common, especially in the bigger cities that they charge the renter a fee as they are finding you a place. The landlord probably already has a realtor, who they will pay a fee towards as well.

The thing is to not sign an exclusive type contract with the realtor for just showing you a place because you'd then have to pay them if you found a place privately, or if they have a place on the books which they don't show you, but you find else where and sign for, you'd be on the hook for the fee.

The fee, who pays and how much though does massively depend on the local market. How busy the place is, how much of a rental is on stock v sale and how expensive the areas are, as well as rental turn over.
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Old Jul 9th 2011, 4:15 am
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Default Re: Realtors fees on a rental

Its all what is agreed upon in writing; customarily, agent fees come from landlord but not always as there are exceptions. Typically, if your agent/broker isn't paid via the landlord due to and upon execution of lease etc, you, as client, are responsible for payment for their fees + services.

Originally Posted by karenmillvalley View Post
..
1. Are you being relocated by your company or have YOU hired the relo agent?..if it is your company, you should be letting them know the agent is trying to get you to pay.
- Nothing wrong in life by getting paid by two separate parties... just as long as its all disclosed and agreed upon in writing etc; nothing slight of hand.

2. If YOU have located an agent do this: Ask the agent to show you around the neighborhoods. DO not sign anything unless they ask. They cannot legally take monies from you just to show you around.
- Better yet, hire a taxi instead and go see the sights too .... go to a restaurant and insist the waiter to pay for your meal. Laws about holding/receiving money differ from state to state.

3. Before I went to a new place I would: ......
- Use this forum for just about everything, demand someone's expertise without a thank-you and leave ... hell, just do it all with a shake of a magic 8-Ball.

4. If you can do all this yourself..do it. Please do not assume agents/realtors in the USA are working in your best interests...many times they have seen you coming (they will ask...'are you new to USA, are you new to area'...be very wary and be very assertive).
- Look Behind you!!! Big Brother is watching - Muwahahaha. Throw salt over your shoulder! Please do not assume that agents/realtors in the USA are the same ... there are good and bad people in every industry.

Good luck! - j'agree!
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