How much fee to pay listing agent for SFH rental?

Question

I have a few SFH properties for rental at Houston. My listing agent asks for 50% of one month rental for himself and 50% for renter agent. The house rents are 2000-2500. Does the number make sense?

Wayne Brooks · Answer

One month’s rent is a typical fee for finding a renter.

Jesus Roman · Answer

Hey @Henrietta Zhao! One months rent if very typical here in Houston unless negotiated other wise with the brokerage firm directly. That is also correct, half of the first months rent goes to listing agent and the other goes to the agent representing the tenant.

Thomas Brett Gilbert · Answer

1st month's rent.

Dave Chapa · Answer

Yes, the numbers make sense.

I negotiated one month on my SFH, and 1/2 on my MF, with my PM.

Cameron Tope · Answer

As stated above, one months fee for leasing is standard. While we have negotiated monthly PM fees, leasing fees are fairly set in stone due to splitting with the tenant agent.

A good leasing agent is worth their weight in gold to reduce vacancy and avoid problem tenants.

Best of luck!

Drew Sygit · Answer

Be careul of those mixing apples & oranges above.

You asked what is a typical Placement Fee. It's usally one month of rent assuming you are a DIY landlord.

Everyone above that stated they pay less than that, also mentioned they have a PMC.

Yes, it is not uncommon for a PMC to charge a monthly management fee and less than a month of rent for a Placement Fee.

Whatever you do, don't let an agent just doing a placement for you also handle applicant approvals! That's like lett the fox guard the henhouse.

Bruce C. · Answer

My agent (who also acts as pm on our duplex) charges 1/2 month rent

Chris Lennon · Answer

Every market is different, but the documentation is your safe guard. If you are self managing and the agent is just listing your property for you, you should have a "Listing Agreement" which outlines the terms conditions and compensation you will be paying the agent. It should be fully executed and signed by both you and the agent. If you are using a property management company you should have something called a "Residential Property Management Agreement". It is the document you signed with your property management company to actively manage your rental property. The action of active management includes advertising and listing the property, screening and placing tenants, as well as collecting the rent and handling maintenance calls. Many are now flat rate services or are included in the monthly fee as a percentage. The management company should have reviewed and disclosed all the costs of their services with you prior to signing the agreement. My recommendation is carefully review the document. Place a call to a few other property management companies in Houston and ask them what their listing service entails and what they charge. Property management is a very competitive space. Your current companies fees seem high based on what I see available online in the Huston area, I would recommend shopping around for a more reasonable and forthright company.

Billy Daniel · Answer

Is it a one time fee or do you have to pay monthly as well?  Seems like a pretty large drain on your cash flow.  Things are different in every area, but where I am we pay no upfront fees.  Only a monthly percentage of occupied properties.

How much fee to pay listing agent for SFH rental?

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