Is there any rule of thumb that how much I should pay commission for housing agent for searching me a rental apartment ? Is it divied between tenant and landlord ?
Is there any rule of thumb that how much I should pay commission for housing agent for searching me a rental apartment ? Is it divied between tenant and landlord ?
Normally it's half of the rental price. I wouldn't pay more than 50%
To be clear the normal starting position is half of one month's rent by the tenant, and half of one month's rent by the landlord. Sometimes you can negotiate this down a bit.
My friend is thinking to rent a place now. But the landlord is asking a bit too much and wont budge. So the agent is offering to slash their commission from $8000 to $2000 to compensate. I guess for the agent, $2000 is better than nothing if my friend walks. Plus they still rip off the the full $8000 from the LL side.
As a counter-offer, your friend should offer the agent $2000 extra for every $1000 they get off the rent.
Thats a good suggestion. But stubborn landlord. I think the agent has tried their best to get the rent down, and the commission discount must be their last ditch attempt before they throw in the towel on this particular negotiation.
Agents offer little value and they shouldn't be called 'agents' anyway as they disappear after they get their commission.
The standard is half months rent to the agent if you're looking for a flat. It's a months rent if you're looking for a whole house as it is very difficult to find. Well, at least that's what my agent charged me.
Thanks for all responses. I managed to negotiate it a bit less than half month, so I quess it's then quite reasonable.