Rental Commission Calculator
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 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 the type of property you want to rent. Nevertheless, the general rule is that the commission can range from 25% to 150% of one month's rent.
For example, as a realtor, you 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. It all depends on the contract – if you're a landlord, give it some thought!
How to calculate the residential real estate commission?
Now that you know how much realtors charge to find a rental, you can use this rental commission calculator to determine what fee you can expect. Our tool automatically computes the three most widespread commissions, but if you would like to charge differently, you can also input a custom percentage of the yearly rent.
Determine the annual rent for the property. We assume you're renting out an apartment for $12,000 a year.
Divide this value by 12 to obtain the monthly rent:
$12000 / 12 = $1000
Remember, this value is not the profit the landlord will make each month – it doesn't consider 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 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!