How Is the Agents Commission Calculated for a Luxury Rental?

It can be beneficial to have a separate agent for the rental of your property, especially if the agent specializes in renting high-end properties. This is because the agent will be more familiar with the market for rentals in your area and will be able to market the property effectively to potential tenants. As for the commission, it is generally up to you to decide how much you want to pay the agent. You could consider offering a flat fee for their services or a percentage of the rent collected. It is also common to negotiate the terms of the commission with the agent before they begin working with you. As for the length of the lease, it is also up to you to decide. Some people prefer to have a shorter lease, such as six months, so that they can reassess the rental market and potentially get a higher rent. Others may prefer a longer lease, such as one year, for the stability and security it provides. Ultimately, the decision will depend on your personal preferences and what you think will be best for your property.

Your calculations of having a separate agent list the property for rental sound on point and certainly a valid one.

You make excellent points about having another agent do the rental listing.

Positive site, where did u think of the data on this posting? I'm satisfied I found it however, sick be inquiring soon to discover what extra posts you incorporate.
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Your listing agent would be the first person to inquire with about adding a "for lease" to the current listing for sale. I know many agents, myself included, who offer property for sale and for lease congruently. Your Realtor, like myself and others, will have a policy for what fees are involved with leasing the property. If when you speak to your Realtor about adding for lease to the listing, your Realtor might not handle lease listings. Some Realtors prefer not to enter into the world of leasing. If that's the case he/she will have recommendations for you, and will refer you to a colleague who will provide you the same top level service your current Realtor provides. I would bet you will find out that your Realtor values the business relationship you have with each other and is much more concerned with your well being than with brokerage fees for leasing your property. Your Realtor wants what's best for YOU, so go to him/her with all your real estate needs.

It can be calculated by the number of Luxury properties you have at the time. If it's a one owner investment property. I'll do a flst fee, but if it's a comoany with many luxury homes it depends on what they're looking for. It slso depends on if property management is needed as well. Must of the luxury homes I lease out I provide property management for the owners. All luxury deals add up for sure.

Have a great week and I love referrals
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Janna,

The listing agent selling your property should be able to help you with renting it as well. If you're concerned about commissions then have that honest conversation with the realtor. If you're bringing good business to the table, then the realtor will want to listen to your concerns and come to a mutual agreement.

Janna,

Commissions are completely negotiable under Federal antitrust laws. Brokerages negotiate wildly different commission rates, some high, and some quite low. Just bear in mind the level of service you receive at the various levels. Just as there are different commission plans, there can also be great differences between the type of product you receive.

The Texas Real Estate Commission has rules that establish a fiduciary relationship between real estate agents and brokers and their clients: "A real estate broker or salesperson, while acting as an agent for another, is a fiduciary." The rules go on to make clear that "...the primary duty of the real estate agent is to represent the interests of the agent's client...[and] the real estate agent [shall] place no personal interest above that of the agent's client." (§531.1) All that to say, your listing agent has a duty to do what's right for you, even if it may mean less money for themselves.

I'd encourage you to start with an honest conversation directly with your agent and address any questions you have about their experience or interest in listing your home for lease. If you still have doubts, a phone call to the broker can go a long way to help ensure you're receiving the service you're entitled to.

Grant Rothberg
Rothberg Realty Group w/Keller Williams Houston Preferred
832-657-6420
grant@rothbergrealtygroup.com

Hello Janna,
First of all everything is negotiable in Real Estate. I would highly advise you to discuss with your current listing agent as well as their Broker if you have not already. When you listed the property, you would have signed a listing contract with the agent. You would want to review that contract and discuss the options with that agent. As far as the worth of the compensation, your current agent has most likely made a substantial investment in marketing your property. If they were to list it as a rental, they would still receive some compensation in the event it rented before selling, where as if you were to rent with another agent they would be out of any investment they made, not to mention it may be possible that you would be in breach of your existing agreement.