So, how much do realtors charge to find a rental?

Finding the perfect rental property in today’s competitive markets is like a marathon. Difficult. It’s a good idea to use the services of an experienced realtor. But, how much do realtors charge to find a rental? And, who pays the realtor’s fees? Don’t worry, we will look at their fee structure, the value they bring, and what to expect if you’re planning to work with a realtor. 

Let’s face it, gone are the days when a landlord and tenant could operate by simply using for-sale signs and online listings. Today, hiring a realtor or real estate agent is a smart choice.

Why should you work with a realtor?

In competitive markets, finding a rental on your own can feel like hunting for a needle in a haystack. Realtors can help you navigate these challenges by identifying available rentals before they hit the market. This is especially valuable in high-demand areas where listings vanish quickly. For example, in San Francisco, securing a rental often involves beating out dozens of other applicants. A realtor’s network and expertise can give you a significant edge.

Moreover, hiring a realtor to find a rental can make the process much smoother. They’ll do the legwork. This saves time, especially when you are juggling multiple listings.

Here’s what a good realtor offers:

• Market knowledge: Realtors are deeply familiar with the local market and can help you find rentals that fit your needs and budget.
• Access to listings: Realtors often have access to exclusive rental listings that may not be available online.
• Streamlined process: From scheduling tours to handling paperwork, they simplify the process.
• Background checks: Realtors coordinate background and credit checks, saving you time and hassle.

Who pays the realtor to find a tenant/rental property?

The burning question for many prospective tenants is: who pays the realtor’s fee? The answer depends on the rental market and the specific agreement. Let’s explore some scenarios.

• Tenant-paid fees: In competitive markets like San Francisco or Boston, tenants often cover the realtor fee. They pay a commission to the realtor for assistance in securing a home. 
• Landlord-paid fees: Property managers or landlords with multiple properties sometimes pay the fees to attract more renters, especially in less competitive areas. They aim to use the services of a realtor to facilitate the home rental process as quickly and efficiently as possible. 
• Shared fees: In rare cases, the fee is split between the landlord and the tenant.

How much do realtors charge to find a rental?

The cost of working with a realtor to find a rental property varies depending on the local market. The exact fee structure can differ, but here’s the basic breakdown:

• A percentage of the rent: The most common fee realtors charge is a percentage of the annual rent, usually 10–15%. For example, if your annual rent is $36,000, you might pay $3,600 to $5,400 in fees.
• One month’s rent: Many agents charge a flat fee equivalent to one month’s rent to secure a renter. Generally, the brokerage collects the first month’s rent, security deposit, and other fees. It uses these funds to cover the agent’s commission, with the remaining balance going to the landlord.
• Flat fee: Some realtors offer a flat fee ranging from $500 to $2,000. This can be helpful if you’re working in a market where rents are very high, and you’d prefer not to base the fee payment on the rent amount.

Read more: How to sell a property without a real estate agent

What do a real estate agent’s fees include for the landlord?

A realtor’s fees include a range of services, such as marketing the housing unit, providing guidance to landlords on suitable rental rates, discussing necessary apartment improvements to attract renters, coordinating property showings, and managing the applications and deposit checks from prospective tenants.

Additionally, the realtor conducts thorough checks on applicants’ credit scores, references, and employment/income sources. Upon tenant acceptance, the real estate agent engages in negotiations regarding rent amounts and lease terms. They then prepare and facilitate the signing of lease documents.

What do a real estate agent’s fees include for renters?

Realtors can streamline the rental process by scheduling property viewings, handling negotiations with landlords, and guiding renters through the paperwork and lease agreements. Their expertise can help renters make informed decisions about the neighborhoods and local amenities. In a nutshell, a good realtor can help a renter save time, reduce stress, and increase the likelihood of finding the perfect rental property.

What are the alternatives to paying realtor fees?

If the idea of paying a month’s rent or a hefty flat fee gives you jitters, consider these alternatives:

• Work directly with property managers: Many rental properties are managed by property managers who do not charge prospective tenants a fee.
• Get help on online platforms: Websites like Zillow, Apartments.com, or Craigslist can help you find rentals without the added cost of a realtor.
• Negotiate the fees: In some cases, landlords may be willing to cover part or all of the realtor fees, especially in slower rental markets.

Bottom line: How much do realtors charge to find a rental

While hiring a realtor to find a rental property comes with a cost, it can be a game-changer for prospective tenants navigating competitive markets. From saving time to accessing hidden gems, the value of their services often outweighs the price tag, particularly in high-demand areas.

Before committing, make sure to clarify who pays the realtor fee, review the fee structure, and weigh the benefits against your budget. After all, finding the perfect rental should be as stress-free (and fun!) as possible.

Ready to take the plunge and work with a realtor? It might just be the shortcut you need to your dream rental!

Read more: Should I sell my home or keep it as a rental?

Written by Ramona Sinha. January 21, 2024

Ramona is the Senior Content Writer for Kukun. This experienced blogger uses simple and succinct words to decipher the complex phenomenon called life. She has written articles covering a broad range of topics, such as real estate, lending and mortgage, finance, business, taxation, home designs, home improvement projects, decor concepts, and more. An avid traveler, she’s a digital nomad at heart and an animal lover from the depth of her soul.