Houston, TX · Member since 2010 · 150 posts · 159 votes
I understand it is typical for commission to be equal to one month rent. Is it an unwritten agreement among realtors to not show houses that pay less? For instance, if commission is 1k but house is listed at 1,600 month.
Property Manager · Michigan Ctr, MI · Member since 2016 · 661 posts · 581 votes
7y
Wade,
Being a licensed real estate agent myself, I don't believe that would be legal written or unwritten. Agents or Sales person can't get together and 'set' a commission across the board. Now it is common practice to charge 1/2 - 1 month's rent for such but, if realtors from different brokerages in the area have gotten together and agree to 'set' a commission so as not to undercut each other and stifle competition - that would be price fixing violates antitrust laws which of course would be illegal. However, don't confuse this with common practice or pure coincidence.
Property Manager · Michigan Ctr, MI · Member since 2016 · 661 posts · 581 votes
7y
Wade,
Being a licensed real estate agent myself, I don't believe that would be legal written or unwritten. Agents or Sales person can't get together and 'set' a commission across the board. Now it is common practice to charge 1/2 - 1 month's rent for such but, if realtors from different brokerages in the area have gotten together and agree to 'set' a commission so as not to undercut each other and stifle competition - that would be price fixing violates antitrust laws which of course would be illegal. However, don't confuse this with common practice or pure coincidence.
To be honest, not really... and let me explain. MOST agents I have come across (I am licensed as well full disclosure) naturally expect 50% commission on any rental (the other 50% going to the listing agent). If you are listing with an agent which I assume you are if it is the MLS, then they will just address this with the listing agent if they actually notice that it is less than 50% commission. Like any industry, real estate has niches and unless the agent is an investor friendly, rental agent then they may not even notice... I can give more insight if you give me the area of town. (It says you are in Houston, but not sure if your properties are there..) I can give insight to Houston, San Antonio and Austin if needed further!
Real Estate Agent · Houston, TX · Member since 2018 · 31 posts · 33 votes
7y
Hello, it is unethical and illegal for an agent to steer a client away from a property just because the commission is not what he or she wants. Yes, it's common for agent to get half a months rent but you can set the terms however you like. I have seen on MLS buyers agent commission $50. Like @Ricardo R. stated it’s illegal for us (including myself, as I’m a licensed Realtor) to gather a group of agents and set “standards on commissions.”