Landlord Paid Realtor Fees

Member since 2021 · 22 posts · 8 votes

Hi BP, What are folks seeing Realtors charge for marketing and tenant vetting for a property in Massachusetts?

I've seen 1 months rent. This seems high, as in the past the listing and tenant agents split the 1 month fee... Let me know what you're seeing out there. And are most of you marketing units on your own with this change? Thanks!

Chris

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John UnderwoodPro Member

Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes

5mo

That seems typical to me. PM's usually charge 1 month rent to do showings and get a qualified tenant to your property. They may have to drive over for multiple showings, some are no shows.

It is definitely work to find your next qualified tenant.

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
5mo
That seems typical to me. PM's usually charge 1 month rent to do showings and get a qualified tenant to your property. They may have to drive over for multiple showings, some are no shows.
It is definitely work to find your next qualified tenant.
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Henry Lazerow
Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
5mo
It is market specific. In Chicago pretty much everyone charges 1 month and if they charge less you need be very cautious as they likely are not cooperating with other agents. In some lower class midwest areas with lots of turnover I have heard managers charging 1/2 month and they pretty much just market it themselves without cooperating other realtors. You often see the worst agents doing rentals, I have even seen these realtors post the photos side ways lol that level of stupidity so be careful who you pick. Rentals are actually a ton of work and takes an expert to help recommend who to pick. I open my rental listings up to the 200+ agents at my brokerage to market like their own and also co-op all other agents.
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Ethan Piani-HohmannBusiness Member
Realtor · Watertown, MA · Member since 2021 · 20 posts · 6 votes
5mo
One month landlord paid is the new normal in Greater Boston. The split fee model is dead post NAR settlement.

The real answer is it is only worth it if the company actually does the job. Most do not. Half the agents in this market think marketing means uploading 6 blurry iPhone photos to MLS and praying. That is why one month feels insane to landlords, they are paying full price for a discount product.

Below are some photos of what our marketing looks like for a current high end Greater Boston listing.

We built a full property website, not just an MLS dump. That is the kind of work that pulls qualified applicants instead of tire kickers, and it is the difference between earning a month and stealing one.

MA is one of the worst states in the country to have a bad tenant. Evictions run 4 to 9 months in Eastern Housing Court, security deposit slip ups can trigger triple damages, and an outdated lease will sink you. The whole job of the leasing agent is risk management on the front end. Real marketing to attract the right pool, screening that goes past a credit pull, and a lease that is current with MA law.

Do all that and one month is cheap. Skip any of it and you are 100 percent overpaying at any price.
[email protected]781-879-0863
PH Realty Group (PHRG)544 Reviews
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Stephen Delahoussaye
Real Estate Broker · Nashville, TN · Member since 2022 · 163 posts · 87 votes
5mo
Chris, one month is standard in most markets and honestly it is the cheapest line item in your budget if the PM actually earns it.
We manage 23 doors in Nashville and charge one month's rent as a leasing fee. Here is what that actually covers on our end: professional photos and a syndicated listing across Zillow, Apartments.com, and our local MLS. Coordinated showings where we ran 14 for one unit last month before finding the right fit. Full screening with credit, background, income verification, and rental history calls. A lease that is current with state landlord tenant law. And a documented move in walkthrough with timestamped photos.
The real question is not whether one month is too much. It is whether the company charging it actually does all of that or just throws it on Craigslist and waits. I have seen PMs in our market charge the same fee and do a fraction of the work, and the owner pays for it on the back end with bad tenants, turnover costs, and legal exposure.
In Massachusetts specifically you have some of the strictest tenant protection laws in the country. A PM who understands Eastern Housing Court procedures and gets the lease right on day one is saving you way more than one month's rent down the road.
Two numbers to ask any PM you are evaluating: average days on market for a vacant unit and their eviction rate over the last 12 months. Those tell you everything about whether that leasing fee is actually buying you a quality placement or just a warm body in the unit.
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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
5mo
Quote from @Chris R.:

Hi BP, What are folks seeing Realtors charge for marketing and tenant vetting for a property in Massachusetts?

I've seen 1 months rent. This seems high, as in the past the listing and tenant agents split the 1 month fee... Let me know what you're seeing out there. And are most of you marketing units on your own with this change? Thanks!

Chris

Go ahead and do it yourself if you think it's so easy!
Just be sure to accurately track:
Cost of any pro photographer you hire
Your time to drive their and take pics you you DIY the pics
Your time to edit said pics
Your time to post the ad on Zillow and wherever else
Your time taking all the calls and responding to all online inquiries
Your time scheduling and doing showings, including prospects that no-show
Your time collecting applications and app fees
Your time chasing applicants for missing documents
Your time processing said applications and docs
Your time creating a lease
Your time chasing approved applicants that suddenly changed their minds about MoveIn Date or just disappear
Your time getting lease signed and collecting all funds
Your time doing MoveIn walk thru checklist with new tenant
How much time do you really think all this takes?
[email protected]248-209-6824
Logical Property Management4.9465 Reviews
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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
5mo
From what I've seen on BP, 1 month's rent is normal. I pay a flat fee to my PM which makes more sense to me as it takes the same amount of work to rent a place that rents for $800 as $2000.
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Lakita Woodson
Property Manager · Atlanta · Member since 2015 · 53 posts · 28 votes
5mo
Hi Chris,
I have multi-units in Philly but live in Georgia, I have never paid a realtor. I prefer to have all my cashflow. Do you really need a realtor?
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Alan AsriantsBusiness Member
Real Estate Agent · Philadelphia, PA · Member since 2019 · 1k+ posts · 1k+ votes
5mo
Hey Chris, I'm a Realtor in the Philadelphia area. I charge a minimum of one month's rent to get a unit rented out. This includes marketing the property, screening tenants, and writing the lease. While it might seem like a lot, the truth is that renting out an apartment as a Realtor can be more challenging than selling a home. Here's why: when I'm selling a property, the end buyer — who they are and how they take care of the home — no longer concerns my client, so my goal is to get the deal to the finish line smoothly. The added pressure of whether or not the Buyer takes care of the property or pays their mortgage is not a qualifying criteria. A rental, on the other hand, requires me to qualify the tenant on a long-term basis. That's more challenging, because the last thing I want is to rent the property to someone who won't pay or won't take care of the home. This attention to detail takes time and experience. I even go the extra step by doing current property walkthroughs if necessary. You wouldn't believe how many people waste your time when you're marketing a property for rent — many hours go into finding a solid tenant. For a fee of one month's rent, it's more than worth it, especially for someone who hasn't done this before. hope this helps
[email protected]267-767-0111
Alan Asriants - New Century Real Estate 592 Reviews
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