Hello Bigger pockets,
I have a realtor that has presented me with some potential tenants for my property. They are asking for the 1st month's rent as compensation. I've never heard of anyone using a realtor to find a home for rent to be honest, but I was wondering is this a scam and if not is the 1st months rent an expected finders' fee?
@Ralph Torres - I believe this practice is a lot more common in large markets (NYC, SF, London, etc.) and the fee of 1st month's rent sounds correct as well. It is likely not a scam as you should get a signed lease, first month's rent and a deposit before paying the realtor anything.
That being said, we've never had a realtor reach out to us on property in our markets and would not pay fees for one if they did reach out. Our cost to least up a unit is significantly lower than 1 month rent and we do not have issues finding qualified tenants.
If you don't need the leads, then it's probably not worth it. If you're having a hard time getting a unit rented then you may want to pay up upon successful execution of a lease.
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