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Real Estate

How much commission does a realtor make on rental property ?

If you’re looking to rent a property, you may be wondering how much it will cost you to work with a real estate agent. In this blog, we’ll explore how much commission a realtor typically makes on rental property, who pays the realtor fees, and whether it’s worth it to work with an agent when renting a house. Additionally, we will discuss the benefits of working with a real estate agent, such as their expertise in the rental market and their ability to negotiate lease terms on your behalf. We will also provide tips on how to find a reputable agent and how to prepare for your rental search.

I. How Much Commission Does a Realtor Make on Rental Property?

  1. Commission Rates for Rental Property

The commission rates for rental property vary depending on the location and type of property. Generally, realtors earn a commission of around 10% of the first year’s rent for residential properties, but this can vary. It’s important to discuss commission rates with your realtor before signing any agreements.

  1. Factors That Affect Commission Rates

Several factors can affect the commission rates for rental property, including the location, type of property, and market conditions. In some cases, realtors may be willing to negotiate their commission rates, especially in a competitive market. It is important for property owners to do their research and compare commission rates from different realtors before choosing one. Additionally, offering incentives such as a longer contract or exclusive listing may also help in negotiating a lower commission rate.

  1. Other Fees to Consider

In addition to the commission rates, there may be other fees to consider when renting a property through a real estate agent. These can include application fees, credit check fees, and administrative fees. It is important to ask the agent for a breakdown of all fees before signing any rental agreement. Some fees may be negotiable, so it’s worth asking if there is any room for flexibility.

II. Who Pays the Realtor Fees?

  1. The landlord pays the fees.

In most cases, the landlord is responsible for paying the realtor’s fees for rental property. This is because the landlord is the one who is benefiting from the services provided by the realtor. However, in some cases, the tenant may be responsible for paying a portion of the realtor’s fees if they have hired a realtor to help them find a rental property and the landlord is not offering to pay the full fee. It is important for tenants to clarify this with their realtor and potential landlords before signing a lease agreement.

  1. Tenant May Pay Fees in Some Cases

In some cases, the tenant may be responsible for paying the realtor’s fees. This is more common in markets with high demand, where tenants may need to compete for rental properties. Landlords in such markets may pass on the realtor fees to tenants to reduce their own expenses. However, it’s important for tenants to carefully review their lease agreement and negotiate with their landlord before agreeing to pay any additional fees.

III. Is It Worth Working with a Realtor When Renting a House?

  1. Benefits of Working with a Realtor 

Working with a real estate agent when renting a house can have several benefits. For example, a realtor can help you find properties that meet your needs, negotiate with the landlord, and handle the paperwork and legal aspects of the rental agreement. Additionally, a real estate agent can provide valuable insights into the local rental market, including average rental prices and popular neighborhoods, to help you make an informed decision when choosing a rental property. They can also assist with scheduling property viewings and answering any questions you may have about the rental process.

  1. Drawbacks of Working with a Realtor

While there are benefits to working with a realtor when renting a house, there are also potential drawbacks. One of the main concerns is the cost of realtor fees, which can add up quickly. Additionally, some tenants may feel that their realtor is not fully representing their interests and may prioritize the landlord’s needs over theirs. It’s important for tenants to carefully consider their options and research potential realtors before deciding to work with one.

  1. Tips for Finding a Reputable Realtor

To find a reputable realtor, start by asking for referrals from friends and family who have recently rented a property. You can also search for realtors online and read reviews from past clients. When meeting with a realtor, ask about their experience and qualifications, and make sure they are licensed and registered with a professional real estate organization. It’s also important to feel comfortable with your realtor and to communicate clearly about your needs and expectations.

IV. How to Prepare for Your Rental Search

  1. Determine Your Budget and Needs

Before starting your rental search, it’s important to determine your budget and needs. Consider factors such as the location, type of property, and amenities you require. This will help you narrow down your search and avoid wasting time looking at properties that don’t meet your criteria.

  1. Gather Required Documents

To apply for a rental property, you will typically need to provide several documents, including proof of income, credit reports, and references. It’s important to gather these documents in advance to streamline the rental application process.

  1. Schedule Property Viewings

Once you’ve narrowed down your search, schedule property viewings with your realtor. It’s important to view each property in person to get a sense of the space and to ask any questions you may have.

  1. Negotiate Lease Terms

If you find a property you like, your realtor can help you negotiate lease terms with the landlord. This may include discussing the rental price, lease duration, and any additional fees or charges.


Renting a property through a realtor can be a helpful option for tenants who are looking for guidance and expertise in the rental market. While there are costs associated with working with a realtor, the benefits can include finding properties that meet your needs, negotiating lease terms, and handling paperwork and legal aspects of the rental agreement. By understanding the commission rates and other fees associated with working with a realtor, as well as tips for finding a reputable agent and preparing for your rental search, you can make an informed decision about whether to work with a realtor when renting a house.