Do I have to pay my leasing agent?

Question

I hired a leasing agent to help me to find tenants. But he is not doing a great job. I am considering to do it by myself. However, I signed a Lease Listing Agreement with him with an expiry date by the end of Jan. If by any  chance I find a tenant by myself before end of Jan, but not through the leasing agent, do I still have to pay for the leasing agent?

Andrew B. · Answer

If he isn't doing a good job, ask him to terminate the agreement. If he refuses, talk to his broker. It is better to end the agreement now, instead of waiting until you have a problem.

Scott M. · Answer

Based off of the information provided no one here can say.  You said you signed an agreement but make no mention of what the compensation part of the contract says.  if it says you are to pay them no matter if they place a tenant or not then yes, you do have to pay him.  If it says you pay them only after placing a tenant then maybe not.  What does the termination section of the contract say?

Not enough info for someone to give you a good answer.

For everyone reading always great to read the contract prior and understand what happens when things go sideways.  Never assume it will be great, so what happens when you need to terminate.

Nathan Gesner · Answer

Any time you sign a contract, make sure there's no fee due if they fail to perform. If they're not doing their job, you shouldn't have to pay them a dime. If you feel they've done some work, but not the complete job, negotiate paying them a portion for the work they have done, then terminate the agreement.

Jon R. · Answer

I suspect that should be in any document you may have signed with them. Read everything carefully. You may not owe them anything if you find a tenant before they do, or, your agreement might say you owe them no matter what unless they cannot find a tenant by X date. Perhaps there is a cancelation fee that is lower than the placement fee?

You might want to discuss your displeasure with the agent, these people are in the customer service business, if you find they are difficult to work with you need to fire them.