If tenant comes with agent, who pays the Agent?

Question

Hello,

I am renting a house and have listed it on Zillow (not directly on MLS). I have been showing the property around, describing it to potential tentants, etc. I will also be reviewing applications, approving/declining tentants, drafting the rental agreement, etc. Today a potential tenant came in with an agent from Berkshire Hathaway realty, wondering if they were to apply and I select them, who would pay for their agent? I didn't post anywhere about any fees being paid to agents, one of the reasons I am doing all the legwork.

Any information/insight is very much appreciated. Thanks,

John Underwood · Answer

You have no agreement with the agent. If you paid them something it would just you being nice.

The prospective tenant is the one who has an agreement with them.

I baffles me that people can't go look at a house with everything listed online without an agent.

I have a 350k house under contract that I am selling. No agents involved. So I passed the savings to the buyer. People think the seller is paying for this but it likely affects how much the buyer pays for a house.

Theresa Harris · Answer

If the tenant was being shown around by the agent and the tenant hired them, they should pay the agent.  You didn't hire them.

Mike McCarthy · Answer

I’ve had realtors reach out to me directly indicating they had an interested renter and asked if I’d work with them. I usually agree to 1/2 month rent ($600-800). I’m happy to pay if the tenant works out.

But unless it’s pre-coordinated, I wouldn’t get bullied into it or anything.

Bjorn Ahlblad · Answer

@Andres Osorno If the applicant met ALL my criteria including prior LL, employment, credit and background checks. Had the move in fee etc. I would pay the agent. You are under no obligation if you do not take the applicant. The applicants who pass Zillow screening generally don't pass mine by a country mile. So the agent from BH would have to be better than Zillow.

Kenneth Garrett · Answer

@Andres Osorno

Most agents will ask you if you will cooperate with agents.  This means you will pay them.  I offer them $300 if they bring me a qualified tenant and I select them.  Typically it’s one months rent.  You can indicate in your listing agents are reimbursed through the tenant. I think it’s fair to pay them something but you are under no obligation.

Jackie Cramer · Answer

Anytime an Agent tried to pawn off a sus....uh, prospect they have that I allowed to to see the house they were worse than the dregs zi has already denied.

Do not accept any of the Agents vetting, do you own

Cliff H. · Answer

From what I have seen with agents in the northeast, you are properly BOTH paying the agent. And, just like buy/sell, it makes it a dual agency agreement that’s ripe for abuse.

The days of the intermediaries extracting a few from both sides of an agreement are long gone. If an agent shows up with an agent that agent is carting them around to any number of other rentals, so who does that agent really work for? Not you, not exclusive, and if that renter is not interested, do you you think they’ll push for your property? Not a chance. Agents work for the tenant if they accompany the tenant.

Karen F. · Answer

Of course you don't pay the agent!  If a potential buyer comes with a buyer's agent, the buyer pays their own agent.

Adam Martin · Answer

When I first started off I paid one $600 but I will not pay again.  I always have plenty of interest so I just tell them that in order to keep things on a level playing ground I do not pay commissions due to the fact I usually receive plenty of applications and this would put their client at a disadvantage since all things being equal I would be selecting the tenant that didn't come with a fee.  Sometimes they still request a showing but often they don't even bother to show which I'm fine either way with. I also feel like if they are working with an agent they are more likely to be looking to buy soon and I'm hoping to get someone longer term.

If tenant comes with agent, who pays the Agent?

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