Seeking Advice on Tenant Placement for New Duplex and Managing Commission Expectation

[Daniel M.]

I'm seeking some insight and advice on navigating a situation with a duplex we are closing on in a few days; one unit is vacant, and the other is occupied. Our friend and real estate agent, instrumental in this acquisition, recommends a family interested in a month-to-month rental of the vacant unit, beginning shortly after closing. This family is currently searching for a home, and our agent, who also represents them, has generously offered to waive any commission for connecting us.

After outlining our standard tenant qualifications—which encompass application requirements, income verification, rental history, credit score, background checks, a non-smoker policy, occupancy guidelines, pet policy, application fees, and move-in costs—our agent indicated that the extensive discussions and adherence to these requirements "equals a full commission of one month's rent."

We face a dilemma as we embark on this venture with a clear business perspective, committed to implementing best practices in property management from the start, including engaging professional property managers. My questions to the community are:

• How can we tactfully navigate this situation?
• How do we align commission expectations with our agent while ensuring our business adheres to its established guidelines?
• Your advice on facilitating tenant placement and fostering professional relationships in such contexts would be greatly appreciated.

Thank you in advance for your guidance!