Home : Blogs : Eileen Landau, ABR, CRS, e-PRO : Move UP to Naperville Blog #2

A true Rental Story

As many of you know, or are finding out, rentals have become a big part of our business.

So, after doing all the work of finding a rental home for your clients; taking them thru the credit part; collecting certified funds and doing a final walk thru of the property...when do you think you should be paid?

When you give the credit report?

When you give the certified funds?

When you turn over the keys?

At possession?

A month after possession?

Having just done a rental at the end of May, I'm still waiting to be paid! And, it just doesn't seem correct. When we go to a closing in Illinois we receive our commission. So, why should we have to wait on a rental?

Our company is seriously thinking about setting up some consistent regulations regarding rentals. And, I just wish other companies would do the same, as it's unfair to the agents not to get paid (in my opinion) at possession.

What is your company's policy?

How often are you doing rentals now?

Any other ideas?

Posted by Eileen Landau, ABR, CRS, e-PRO on 06/25/2008 09:53 AM

Comments (9)

rental policies, getting paid for a rental, naperville real estate, move up to naperville blog

This post has been included in Illinois Information Du Page County, IL Information Naperville, IL Information

9 Comments on A true Rental Story

JUN

2008

Well, in my opinion, that'd be an improvement! here it's impossible to even get paid! Very few offer compensation, and most landlords will just move on to the next phone call when the agent asks to be compensated. Here, I've found it's best to give the client a list of places to try and let them go at it - If I won't be paid, I don't want to waste a lot of my time, and if I ask to be paid, I actually jeopardize their chances of getting the place!

It's horrible. I'm doing one right now that I'm only doing because it's a short lease and they are signing the B.A. agreement for me to find them a home afterwards and it's enough money off that possibility to make it possibly worth the lease hassle.

doesn't help that here there's no good way to find leases. They're not MLS'd, so I'm reduced to calling property management folks to see what's available, driving the streets, and reading the paper!

I'm not sure how it's done in IL, but here in VA there is no guarantee for compensation unless it is written into a contract, or at least signed, agreed to by the parties, in writing. However, if it is agreed to, in writing, you should get paid once the first rent payment is paid and the tenant has gained possession of the property. At that point, your broker should receive the compensation and, therefore, pay you the agreed split.

In VA, the VAR has a lease that is made available to licensees; however, the problem the VAR continues to have is that the lease never is not fully up-to-date. Therefore, if someone is going to partake in the ins-and-outs of property management, at least here in VA, they (and their broker) need to keep up with the ever-changing landlord-tenant law themselves.

Eileen,

I had a buyer client who ended up renting instead. It took the property manager over a month to send a commission check to my broker. The client was a referral to me on top of it, the commission was low, I will clear $71.00 from it. The client was very nice, but in the end I spent more than that on gasoline showing them homes. Hopefully they will buy from me in the future when their lease is up.

Interesting...

In our part of Illinois, rentals can be put into our MLS. In fact, many owners and investors have their property on for both sale and rent. So, rentals follow the same guidelines, and compensation is placed on the rental forms.

I spoke with one agent who said that he decided that he would pay out half of one month's rent to the agent/agency that brought him a qualified tenant. It worked for him as he rented the property (which had been for sale for over a year) in days.

Sherree...if rentals in your area do not appear in MLS, then I'd just have to a) have the tenant pay me or b) explain that you do real estate as a business not a charitable deduction.

Phil...Illinois passed a law several years ago that you had to have a Property Management license to manage property. I managed properties back in the '70's, '80's and '90's. Got all of them sold by 2000.

Rich...I know exactly how you feel. The people who rented from me, moved into my sub-division and will be buying a home from me next year. And, I'll be seeing and talking to them weekly!!

Eileen - Around here, the monies all go to the landlord and then we wait for the landlord to pay us - sounds like you have the same situation.

What I've done when representing tenants, is have all the funds paid to my office, then my office will cut checks to me, the listing agent's broker and the landlord (the landlord's check has the commissions deducted). Listing agents balk at this, until they realize they are getting their check immediately. Then they ask me how they can implement this in their own office...

Don,

turns out that the owners are out of the country! And, as the other agency doesn't have a good way of handling their rentals, they're now waiting for the owner's check to clear.

Ideally, in working with rentals, you want the security deposit in certified funds, made out to the owner. But, you want the first month's rent also in certified funds made out to either your broker or the listing agency's broker. Then the broker cuts the check from his escrow account.

I can only receive funds from my broker...so, it's going to be interesting. I suspect that the listing brokerage will cut a check to my broker.

Eileen,

I used to live in Naperville. I know that it is a wonderful place to live. I am a former Lucent employee now living in Frederick Md.

Hi Rich,

Yes...I remember when Lucent had 11,000 employees working on Warrenville Road. Several clients and friends worked there. Now, I think that there's just a small number of people left. Several of the buildings have been rented out to other companies.

And, downtown Naperville is so much fun. We had relatives in for my daughter's wedding and they all praised the downtown area. Great restaurants and shops. Come back and visit.

Eileen

AUG

2008

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