Rental Commission Calculator
Table of contents
How much do realtors charge to find a rental?How to use this rental commission calculator?How do I calculate the residential real estate commission?FAQsWhether 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 will vary depending on what kind of real estate agency you hire and on the type of property. 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 to charge one month's rent for finding a tenant. If the monthly rent is $600, you will receive exactly this amount.
How to use this rental commission calculator?
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.
Want to understand how this tools works? Let's discuss how to perform these calculations by hand.
How do I calculate the residential real estate commission?
To calculate the rental commission, follow these steps:
- Determine the annual rent for the property. For instance, $12,000 a year.
- Divide this value by 12 to obtain the monthly rent:
$12000 / 12 = $1000 - Decide on the commission. For example, you can 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!
🔎 Remember that the monthly rent 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.
What is the rental commission?
The rental commission is the amount of money paid to a realtor for bringing in a tenant. We often express rental commissions as a percentage of the annual rent or the number of monthly rents.
Who pays the rental commission?
In most markets, it is the owner of the property who pays the rental commission. However, sometimes the rental commission is split 50-50 between the landlord and the tenant. It all depends on the contract – if you're a landlord, give it some thought!