Renting a property on your own can certainly represent savings, although in return you risk falling into real estate fraud or simply taking a long time to find the ideal tenant. Finding the right plaster companies can help you receive quality services at a competitive cost.
One of the biggest concerns of people is that the cost of hiring a real estate agent to manage the rental of their property is very high, a belief that has been fueled in large part by misinformation and that is actually unfounded.
Therefore, to help you in your decision, we tell you here how much a real estate agent charges for renting your property.
How does a real estate agent get paid?
What does a real estate agent do when renting a property?
How much does a real estate agent charge to rent your property?
How Does A Real Estate Agent Get Paid?
To find out how much a real estate agent charges for rental commission, you must first know in broad strokes how an agent or a real estate consultant works.
The real estate agent profession is surrounded by myths and popular beliefs that are mostly not correct. For example, many people believe that real estate agencies pay affiliated consultants a fixed salary.
This is not so, in reality, the income of a real estate agent depends entirely on their results and the services they offer. That is, through these, he will receive the payment of fees. Due to this, each commission varies according to the type of operation. These commissions in turn can be fixed or depend on the value of the operation.
What Does A Real Estate Agent Do When Renting A Property?
The advantage of having a reliable real estate agent is that you can entrust practically all matters related to the rental of your property, thus taking a lot of pressure off yourself.
Whether you are away from your property due to being in another city or state, or you simply do not have time to take care of yourself, the agent will take care of all these activities:
They have the appropriate means and channels to give visibility to your ad. Many times the agents are associated with professional photographers and/or designers to give the best visual impression of your property in the advertisements, in addition, if they belong to an agency, they can include your property in their catalogs.
Search for potential tenants
They establish contact with people who are interested in the property, show the property, and investigate their background, references, and economic solvency. As an owner, in the end, you receive only the strongest and most serious proposals to give your approval or continue with the search.
Once the potential tenant is approved, all the corresponding legal procedures are carried out, including the drafting of the contract, negotiation of clauses, and its validation before a notary public. In this process, you are informed at all times of what is happening, and in the end, you only have to show up to sign the corresponding documents.
Manage rent payments
This is an optional task, but it can be very useful if you are far from your property or have more than one rental property. The agent can collect the monthly rent for you and only notify you on the date the payment is made, making an electronic transfer to your bank account. This way, you can stop worrying about forgetting to charge the tenant. Take into account that this service, being optional, implies an extra cost in case you request it.
So How Much Does A Real Estate Agent Charge To Rent Your Property?
Technically and by definition, the collection of fees is free, that is, each professional can set the rate they want. However, there is some consensus in this sector to determine how much a real estate agent charges for rental commission:
For finding a tenant: Generally, the commission for this is one month’s rent.
For managing the collection of rents: a percentage of the monthly rent is generally charged, which does not exceed 10 percent.
For renewing the lease: there may be two options, charge a fixed fee predetermined by the real estate agency or a commission, usually a certain percentage of one month’s rent, also predetermined by the agency.
Take into account that the fees of real estate agents are not regulated by any authority, as in the case of public notaries, for example. But the rates that we present to you can serve as a reference when you are going to rent your property for the first time.
Also, it is important to know that the agent collects his commission until the lease is signed. It is best to explore your possibilities and approach several agencies to compare their rates and determine which one best fits your budget. Counseling is usually free.