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Updated about 8 years ago on . Most recent reply
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Real Estate Agent Tenant Fee
So I am in the process of turning over my first unit. I have been doing all the advertising myself, meeting people to show the unit, following up about applications. I have just received a couple that has been working with a real estate agent that is interested in renting the unit and are looking to put a deposit down to hold the property. Things seem to be going well. I had a call with the agent to discuss the paper work and the agent asked if I was going to pay their fee. This took me a little by surprise, I was under the impression that if I contracted an agent to find prospective tenants, then it was my responsibility to pay the fee. If the tenant had contracted the agent to find them an apartment, then it was the tenants responsibility to pay the fee. Am I incorrect?
Just a little extra back ground this is in Massachusetts. The tenants just used this agent to sell their house and are doing a short lease while they look for a new house using this agent.
Most Popular Reply
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You do not owe them a fee and under "normal" circumstances as a Realtor, I would have phoned you in advance asking if you were willing to pay a "finder's fee" for my prospective client. Moreover, however, I am embarrassed and appalled as a Realtor that this individual would ask for anything from you since 1) it is a short term rental that you advertised no fee paid and they didn't ask first, and 2) you are doing that person a favor by accepting a short term rental in their clients' time of need and most likely desperation. You are doing the agent a favor in essence.
The more shocking thing about this scenario to me is How greedy can this "agent", I use the term loosely, be when they are making a commission from both the house sale and the new purchase of their client? They should be thanking you instead it seems like.
If you would like to market your rentals on your own in the future and don't want to exclude "agents" or Realtors, you can always add to your advertisements "Agent/Broker protected" in which case you can pay half the listing rate which where I am is typically 30% of first month rent or a flat rate that is comparable.