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Are You Kidding Me? 20%?

By Ron Barnes

Real Estate Agent with Associate Broker at Berkshire Hathaway Home Services Georgia Properties 256152

July 18, 2012 10:11 PM

I have a client looking for a rental. He's all over the place, but that's another story. This is about my journey through rental listings.

Obviously rental property is at a premium right now if it's priced reasonably, and is in a good school district. What I found yesterday is either shocking, insulting, hilarious, ridiculous, or just plain greedy.

There was a home my client spotted on my search engine. When I pulled up the listing, the commission to the person who brings in the tenant is 20% of the first month rent. That would amount to $210, from which I have to pay my broker and my other expenses. Did I mention it is 50 miles away?

So do you really want to avoid coop agents altogether? You're not doing the landlord any favors, and in my opinion your actions are close to being an ethics violation since you are obviously more interested in what you make than your client's best interests.

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Peter den Boer

Atlanta Communities - Woodstock, GA

MBA,GRI, Associate Broker, Realtor

Welcome to the world of rentals! I have seen 10% from a company we both know well! This is the least attractive area of real estate that I can think of. No wonder people can't get agents to help them rent.

Jul 18, 2012 10:16 PM

Tanja Cisliek

Future Home Realty - Seminole, FL

Real estate with passion and professionalism!

Ron and Peter, I know it does sound like a terribly low commission, but I suspect the agent listing it doesn't get paid a whole bunch of money him- or herself. If too much goes to the Realtors for finding a tenant, we put the Landlords out of business.

The intend with the low commission is probably not for you to show it, but for you to pick up the phone, call the listing agent, register your client and protect them as your client, and then the listing agent is going to show the property for you. I currently have 2 rentals advertised where I offer $100.- to any agent sending me a referral. I don't get enough paid myself that I can offer more. I've reviewed it with the owners, and they know that nobody will put their client in their car and show a condo for rent in order to earn $100.-.

Jul 18, 2012 11:07 PM

Are You Kidding Me? 20%?

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