Reasonable fee for tenant screening

[Jerry Rubinow]

I have a tenant that I'm letting out of her lease early - she is one of three people collectively renting a house. In exchange, she is going to locate a replacement that is acceptable to the other tenants and will pass a tenant screening.

Initially I was going to have the realtor I used for initially finding and screening the current tenants to screen this new person. That realtor said the fee for screening would be a third of a months rent, which I'd pass on to the exiting tenant.

The tenant feels this amount is excessive and asked if it would be acceptable for her to locate a different local realtor to do the screening, assuming another would change a substantially lower fee.

So my questions are:

1. What kind of things does a screening typically consist of?

2. Is $600 or $700 an excessive fee to charge?

3. Do I have any obligation to have the original realtor do the screening?

4. What kind of things are essential to include on a screening?

Thanks,

Jerry

[Marina Shlomov]

Tenant screening costs anywhere from $35 to $55 per person should include a credit report, criminal background check, eviction check,  and in some cases prospects are run through a terrorist and a child abuser data bases. Therefore giving you enough information to make an education decision regarding the prospective tenant. We additionally call the previous landlords and current jobs to make sure that the prospect pays rent on time, is not disruptive and will follow your rules.

Tenant placement fees, which is what your realtor is seems to be asking for would not be appropriate in your case as they would not be the ones finding a tenant for you. The price your realtor is asking for is exorbitant for tenant screening and inappropriate for placement.

It seems your realtor is trying to grossly overcharge you. 

You are not obligated to use the same realtor as before and it seems you should be careful with this one.

Hope I helped. Good luck.

Marina