Whether you’re a real estate agent or a private landlord, you are bound to find this rental commission calculator useful. With its help, you will be able to find out what is the commission charged for finding a tenant.
Unlike our real estate commission calculator, this tool determines the commission for renting rather than for selling a property.
If, on the other hand, you are a tenant, you might find this commercial lease calculator quite useful.
How much do realtors charge to find a rental?
The answer to this question will vary depending on what kind of real estate agency you hire, and on the type of property that you want to rent out. Nevertheless, the general rule is that the commission can be anywhere from 25% to even 150% of monthly rent’s worth.
For example, you, as a realtor, can decide that you want to charge one month’s rent for finding a proper tenant. If the monthly rent is $600, you will receive exactly this amount. This fee is usually split 50-50 between the landlord and the tenant. All depends on the contract, though – if you’re a landlord, give it a bit of thought!
How to calculate the residential real estate commission?
Now that you know how much do realtors charge to find a rental, you can use this rental commission calculator to find out what fee you can expect. Our tool automatically computes three most popular commissions, but if you would like to charge differently, you can input a custom percentage of the yearly rent, too.
Determine the annual rent for the property. We can assume that you’re renting out an apartment for $12000 a year.
Divide this value by 12 to obtain the monthly rent:
$12000 / 12 = $1000
Remember that this value is not the profit that the landlord will make each month – it doesn’t take into accounts factors such as operational costs or rent-free months. If you would like to include them in your calculations, take a look at the net effective rent calculator.
Decide on the commission. For example, we can assume that you will demand half a month’s rent as the fee.
Now, all you need to do is calculate the half-month’s rent. Divide the monthly rent by two:
$1000 / 2 = $500
Voilà – you have just calculated your rental commission!