Helping landlords rent their homes for a fee?

Question

With the right paperwork stating that I am not a Realtor, am I legally able when talking with a landlords allowed to offer help finding them a renter for a fee?  When looking for buyers, I come across people looking to buy but can not for whatever reason.  I also come across rentals that I talk with that just are not motivated enough to sell but they still would like to get their property occupied asap.  My question is can I offer the home owner a situation that if I find a renter and they accept the renter I then collect a fee?  If I can do this, how would I go about getting background information from the renter for the homeowner legally and ethically?  Any opinions on weather this is a good or bad idea would be greatly appreciated.  Thanks

Shanita Parker · Answer

I am trying to start a simliar business. I want to advertise rentals for a fee.  I am not for sure if I can do this without a license. Should I charge the tenant or charge the landlord, or should I just charge an ad fee like in the newspaper?

Jon Holdman · Answer

Most states would consider what you're describing as "property management" and that usually requires a real estate license.  Like Don says, you need to research it specifically for your state.  There's usually some state agency that's in charge of real estate licensing.  Unfortunately, it could have a fairly obscure name.  Try finding your state government web site and searching around on that.

Just Don · Answer

Research the law in YOUR state.  In some it is called managing real estate without a license.  Like being a real estae agent without a license.  They regulate things like this to have control over BAD ones!!

LaTonya Thompson · Answer

Hello, there are resources on this site, www.biggerpockets.com which provides information on tenant screening, 
            
            Tenant screening is an essential part of being a landlord. Without proper screening procedures, you can find yourself stuck with potentially nightmare tenants. Using credit checks, background checks, eviction reports, criminal records, and other data, you can filter out those tenants you want nowhere near your property.

Tenant Screening Tools for Landlords

You can use the information above to obtain a tenant check and you can charge the tenant the amount of the tenant check fee to keep from having to absorb the costs yourself. 
            
            You should also make sure that you are dealing with a reputable Landlord, if you are going to be bird dogging for him. I suggest that you get something in writing agreeing that he/she would pay you for the tenant that you place in the home. It can be written up and it doesn't have to be fancy. When creating a contract, all intentions need to be spelled out. In lay terms, the amount you want from him, monthly referral fee for the placed tenant or perhaps a one-time annual lump sum fee for the tenant that you placed. In a monthly scenario, say for instance the Landlord that you are bird dogging for has a rental property that rents for $500 a month but you find a tenant who is willing to pay you $600 a month. You pocket $100 cash per month from the Landlord but be careful as you don't want to get into sub-leasing as you could find yourself responsible for repairs on the property and evicting the tenant if he/she doesn't pay so be sure to spell out in the contract that you will receive a monthly fee for x-amount of dollars and for x-amount of time for the tenant that you placed in the property and also be sure to name the Landlord in the transaction and state that he/she will be responsible for repairs and maintenance on the property. 
            
            You can also go to your local office depot or officemax store and purchase rental applications or you can ask the Landlords for a some. All you need is one application to get started, then you can make your own copies. Making copies from the originals should be a lot cheaper than repurchasing new rental applications.  At any rate, they aren't that much. I think they're about $10 bucks. 
            
            Hope this helps, take care. This is Tonya from Texas wishing you well.