| Oct 13, 2017

Hiring a real estate agent to handle the logistics of renting out your property can be a smart move—one that many homeowners make. An agent can create a listing for you, help you check out applicants, and generally manage other aspects of renting so you don’t have to. But before you sign a contract with an agent, you’ll want to figure out how much it will cost so you still come out ahead. Do the math!

Let’s take a look at how much it costs to rent out your home through an agent.

Real estate agent fees associated with rentals

The amount your agent will charge you depends on the list of responsibilities and the rate they plan on charging you.

“There is no set commission,” says Beverley Hourlier, a Realtor® with Hilltop Chateau Realty in San Diego. But there are some common guidelines.

“I usually charge half of the monthly rent if I am just helping to lease,” Hourlier says. She adds that some agents charge a “lease up” fee, which is half the rent plus costs like running a credit report, plus a property management fee.

“If I property manage, then I charge 10% of the monthly lease,” Hourlier says. Keep in mind, property management is a little outside the wheelhouse of most real estate agents. If that’s what you’re looking for, you might want to hire a company separately. Some property management companies will find your tenant for an additional fee.

Although there isn’t a set commission for real estate agents involved in rentals, a common range is around the cost of one month’s rent.

“My charge to all of my rental clients is one month’s rent, which will be split between my broker and the renting broker,” says Juan Vazquez, a Realtor with RSVP Homes Realty in Hollywood, FL.

John Klein, a Realtor in Coral Springs, FL, also says a commission of 10% of the monthly lease or one month’s rent is standard.

With those ballpark figures in mind, make sure you and your real estate agent make a list of services they’ll provide to get your home rented out. That way you’ll know what their fees cover. If an experienced Realtor can bring you a responsible renter who can pay more, it could be well worth the fee.

If you need help with property management, tenant management services, or looking into a property investment – contact CMG Toronto today. The best property management company in Toronto.


Need help? Contact the best property management company in Toronto.

Adriana Velez is a food, wellness, and home writer . Her work has been featured in Healthyish, Prevention.com, Lifehacker, She Knows, and CafeMom.

Source: https://www.realtor.com/advice/rent/how-much-will-it-cost-me-to-rent-my-house-through-a-realtor/ | 10.26.2017


By Colleen Kane | Oct 12, 2017

You, holing up in an illegal rental? Never!

At least, that’s what I thought before I was kicked out of my own illegal rental when I was, oh, about eight months pregnant. Worst of all, I had no idea my cellar apartment was illegal. That’s a horror story for another time, but it has a universal takeaway: Knowing what’s legal in your rental market can save you a boatload of trouble in the long run.

Laws differ by location, so you can protect yourself by researching the building and its local ordinances. One starting point is simply to Google the building’s address (with quotation marks around it for best results), which might turn up reports of prior or outstanding violations. If you’re suspicious about something, it’s also worth checking your local department of buildings or building safety, which will have the certificate for your building (in my city, it’s viewable online).

If you need help with property management, tenant management services, or looking into a property investment – contact CMG Toronto today. The best property management company in Toronto.

So before you move into a rental, if you suspect something’s up, here are some features that are red flags.

1. You’re renting a basement, cellar, or attic

Basement apartments might seem sweet, but watch out—as I learned in my cellar fiasco, unusual often means illegal.

In New York City, in fact, basements are the most common form of an illegal apartment, and cellars and attics may not be far behind. (What’s the difference between “basement” and “cellar” for lower-level spaces? A basement rises at least 50% above street level, while a cellar has the majority of its space below street level, and different laws can apply to each.)

To be declared legal, a basement, cellar, or attic apartment has to meet criteria like having a minimum ceiling height (in New York, it’s 7 feet) and being zoned as living space. So if the space is mostly below street level, if its ceiling seems suspiciously low, or if its windows are tiny, definitely do more research on whether this space is legal to rent as a residence.

2. You’re renting a loft or converted warehouse

Love the industrial vibe of living in a loft or converted warehouse space? You’d better check local zoning ordinances and codes. Many of these former factories weren’t legally converted to residential units, or they aren’t up to snuff in terms of safety and fire codes. So, ask the landlord for a residential Certificate of Occupancy, and beware of lofts where typical residential amenities like bathrooms, plumbing, and electrical seem hacked into the layout in a way that seems less than safe. As the deadly Ghost Ship fire proved, some warehouse conversions are done without regard to fire codes. If living spaces seem crammed in a haphazard manner, if electrical wires are exposed, or if paths to exit are scarce, look elsewhere.

3. You’re renting an in-law suite

In-law suites, also called secondary units, are the common name for self-contained suites in private homes, with a separate entrance, kitchen, and bath. But if you’re considering paying rent to live in such a suite in a stranger’s home, proceed with great caution.

“What we typically find is that in-law suites were never permitted as such, making them illegal apartments,” says Robert Pellegrini, president of the PK Boston law firm. He explains that when homeowners add a new residential unit, they often don’t know they need to get permits for this second dwelling—even if a family member is moving in. So if you’re considering such a unit, make sure to ask to see permits. They may also be required to provide other features such as a separate electric meters and a parking spot.

4. Utilities are included

Great! How can you go wrong with free utilities? Here’s how: If everyone living in the building is on one gas meter, the building may not be zoned for separate dwellings. It’s a possible sign that the landlord is hoping to hide illegal rental units. Similarly, if you’re told you can’t have mail delivered to the apartment’s address, it may be an attempt to hide you, the less-than-legal renter.

But this is not always the case. “Often, it is less costly for landlords to simply include the utilities rather than remeter and/or separate the utilities,” points out Pellegrini. So go ahead and ask the landlord for documentation on the number of dwellings allowed in the building to make sure everything’s on the up and up.

5. There aren’t enough windows or exits

If you’re renting a bedroom in a larger apartment with other people, make sure that “bedroom” is legit. To officially qualify as a bedroom, in addition to a door, rooms must have a window, but there is some wiggle space here. For instance, a skylight counts as a window in some locations, and the window need not be facing the great outdoors; even a window facing another interior room with a window could pass muster. There also needs to be another exit from the dwelling other than your main entrance.

“If there are no other doors, the landlord must provide a fire escape,” says Pellegrini. “Failing this, there is no way you can rent there.”

Laws differ by location, but in New York, you might have a wrought-iron, balcony-style fire escape or emergency stairwells. Newer buildings may even have evacuation elevators.The old adage to never take an elevator in case of a fire may no longer apply across the board.


Colleen Kane has written for Fortune, Money, and other publications and websites.

Need help? Contact the best property management company in Toronto.


Source: https://www.realtor.com/advice/rent/illegal-rentals/ | 10.12.2017

 | Aug 24, 2017

If you’re familiar with the struggle that is finding an apartment online, the idea of a real estate agent who can help you in your search might sound like a godsend. We all know real estate agents help people buy a home, but did you know they can also help people find properties to rent?

A real estate agent can save you the hassle of tracking down landlords and property managers from Craigslist, especially in bigger cities, though the services they provide (and the fees they charge) vary by location. Here’s what you need to know.

Real estate agents and rentals

What a real estate agent does to help you find a rental depends on the location—whether it’s a large city or a small town—and the agent. Sometimes the agent will guide your search from the very start, helping you find the right neighborhood, apartment size, and price range, then go with you to open houses. More likely though, you’ll already have a lot of that information decided, and the agent will send you listings that might be of interest to you.

No matter what, once you’ve decided on a rental and have been approved by the landlord or management company, your agent should help you read and understand your lease.

“Most tenants can find a place without a real estate agent, but they forget to seek out someone who can help them understand what they’re signing when they sign a lease,” says Dillar Schwartz, a Realtor® in Austin, TX.

Your lease has all kinds of vital information in it, including what repairs you’ll be responsible for, the penalties for late rent, and even the terms for breaking the lease. You want to be sure you’re not signing anything that puts you in a bad position financially or violates your rights as a tenant.

Where you’re looking to live makes a difference

In cities such as New York or San Francisco with huge populations of renters, it’s common to use a real estate agent to find a rental property, and there are entire agencies that specialize in doing just that. In some cities, it’s more common for agencies that focus on rentals to be called “apartment locators,” but they provide essentially the same service.

In places where rentals are not as common, you might find that apartments, townhouses, and condos are more commonly handled by the complex’s management company. People renting out their homes in primarily owner-occupied suburban areas, especially those with HOAs, will often use real estate agents to help find renters who meet the neighborhood association’s requirements.

How do you find a real estate agent who deals with rentals?

“One place to start is realtor.com®, and do a search for rentals in the area you wish to live in, then contact the agents that represent those properties,” says Teri Andrews Murch, a Realtor in Auburn, CA.

Personal referrals are also a great way to find someone. Ask friends for the names of reliable real estate agents they have worked with. Even if those agents don’t work with rentals, they probably have a colleague they can connect you with who does. It’s important to find someone you trust, since that person will be helping you find your new home.

How much are real estate agent fees for rentals?

Broker fees are another thing that vary widely by location. In many places, the landlord pays the real estate agent to help find a desirable tenant. Apartment locator services are almost always paid by the landlord. In more competitive rental markets, the tenant will often be responsible for the real estate agent fee, sometimes called a “broker fee.” In fact, even if you find the listing on your own, some rentals will require you to pay a fee to the landlord’s broker for listing the property.

Fees can be as low as $50 to $75 for a credit check or application, but more common rates are one month’s rent or 15% of the annual rent on the apartment.

Before you start to work with an agent, make sure you ask what fees you will be responsible for paying.

Need help? Contact the best property management company in Toronto.


Audrey Ference has written for The Billfold, The Hairpin, The Toast, Slate, Salon, and others. She lives in Austin, TX.

Follow @audreyferenceSource: https://www.realtor.com/advice/rent/are-there-realtors-out-there-who-help-find-apartments-how-would-they-earn-commission-on-these-types-of-properties/