I just received this:
I am a student interested in the field of real estate. I understand that a real estate agent makes money on the sale of a property based upon a percentage of the final sale price. I was wondering how a real estate agent makes money on a lease of a rental property?
Thanks for the help, Jim
A landlord lists his property with a real estate agent for a number of reasons. The landlord benefits from the agent's experience and connections, but also because the agent has access to the MLS (or Multiple Listing Service) and other venues for promoting the rental property.
There are many ways that a rental listing can be charged, but most usually the landlord agrees to pay a portion of the first month's rent to the listing agent. The more the rent, the higher the commission paid. Landlords are generally happy to pay this because a listing agent saves them time and money (as compared to ads in the paper plus dealing with calls from unqualified renters).
If the renter has his own agent, the listing agent will pay a predetermined portion of the commission to the selling agent (as the renter's agent is called). Please let me know if this helps.
Stay Within Your Budget
The first step for any renter is to establish a realistic budget. Without a budget you will not be able to make an informed decision about the type of property in {Location_Name} that you are able to afford, and you may eventually find yourself struggling to pay your rent.
When drawing up a budget you need to consider your fixed costs. These are payments that must be made monthly and they cannot be altered. You need to subtract your fixed costs from your monthly income. These could include car insurance, travel costs, school fees, and debt repayments. Then, you should also subtract your living expenses such as food, entertainment, and medical bills. Once you have subtracted all these costs, you will be able to determine the amount that you have available to spend on rent per month. It is important to be realistic when you draw up your monthly expenses; and it is a good idea to include an additional amount to be set aside for emergencies, savings, and unexpected expenses. Once you have a clear idea of your rental budget, you may then start looking for a property that suits both your lifestyle requirements and is within your budget. This is a good time to contact a Rental Agent. Rental Agents have access to all the available rentals. They can ensure that you get good value for money; and best of all, they cost the renter nothing.
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For more information or to set up an appointment call Stuart at
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