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. Renting in {Location_Name} may not be the same level of commitment as buying, but it is still a commitment; and it is important to make the best possible choice. Signing on the dotted line means that you are committing to a property for a defined period of time. Before you sign a rental agreement it is important to consider all your options. You need to decide whether the property meets your requirements. Is it within your budget? Is it big enough? Is it in the right area? And does it offer you the lifestyle that you are looking for? These are all questions that you need to answer before you sign a lease. A lease is more flexible than buying, but it is important to remember that you are still committing to renting the property for a certain time period. It is best to look at a number of properties in {Location_Name} and consider all your options before making a final decision. However, the sheer number of properties out there may make the process quite daunting. A good Rental Agent can help you narrow down your choices, so that you are able to choose the property that best suits your needs. [Learn more.] For more information or to set up an appointment call Stuart at (703)765-0300.
