Got a lease agent, but I got the lead earlier - what's next?

Got a lease agent, but I got the lead earlier - what's next?

Member since 2019 · 40 posts · 15 votes

Hi BP community, 

I recently purchased a three-flat with one vacant unit. At the beginning I thought I will do all the marketing and showings myself and therefore I listed it on Zillow and a few other websites. A few days before closing I only had one interested lead and I decided to get a lease agent to help me with marketing and showings given I'll be busy at my full-time job and won't have a lot of time to show the unit. The lease agent signed with has a standard 1 month rent fee for finding me a tenant and I signed the standard Chicago rental listing agreement. 

The interesting part is that the lead I got from Zillow actually showed up (I did the tour as it was the day I was signing with the leasing agent), they liked the apartment and decided to apply (the agent did the application process and the background check), with all the checks it looks like we are honoring the lease to these folks. 

The question I have, what is the common practice in this case related to the lease agent fees. Am I still technically liable to pay the 1st month fee? I'm willing to compensate the agent for the work and time he spent, but I just feel the 1 month lease fee is not justified in this case (he did show the property to one of the applicants, he brought a photographer on site, but there is no need to list the property now and the lead came from my old posting). Would it be fair to try to negotiate a discount on the fee? Have folks seen similar situations? 

Thank you!

0Reply
30 views

Most Popular Reply

Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
6y

On majority of my leasing contracts it states if seller finds their own tenant they don't owe me anything I like to do it like that as avoids situations like this and if owner leases it I really don't deserve a commission. Not every contract says this so read your contract it should spell out whether you have to pay them a commission or not. 

See this reply in the discussion

4 Replies

Jump to latestLatest
  • Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    6y

    On majority of my leasing contracts it states if seller finds their own tenant they don't owe me anything I like to do it like that as avoids situations like this and if owner leases it I really don't deserve a commission. Not every contract says this so read your contract it should spell out whether you have to pay them a commission or not. 

  • Member since 2019 · 40 posts · 15 votes
    6y
    Originally posted by @Henry Lazerow:

    On majority of my leasing contracts it states if seller finds their own tenant they don't owe me anything I like to do it like that as avoids situations like this and if owner leases it I really don't deserve a commission. Not every contract says this so read your contract it should spell out whether you have to pay them a commission or not. 

    Thanks Henry! My agreement doesn't spell anything related to this situation, so I guess it will be up to me and the agent to negotiate it.   

  • Dan NelsonBusiness Member
    Real Estate Broker · Chicago and Kansas City · Member since 2016 · 99 posts · 92 votes
    6y

    Generally they will understand the situation.  If you just pay it and not ask, they will happily accept it.  I suggest you say something positive such as "I want to compensate you for your time even though you didn't actually find the tenant or show the property to him.  What do you think is fair?"

  • Investor · Chicago, IL · Member since 2017 · 40 posts · 33 votes
    6y

    The time to negotiate is before you ask the agent to do all of the background checks and lease signing.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.