How do Real Estate Agents Make Money on Rentals | Pro Ways

You should consider how real estate brokers profit from rents if you’re considering purchasing a home. Real estate brokers may generate money by buying property for rental purposes. As a result, we’ve written this article to inform you. Let’s find out how do real estate agents make money on rentals.

There’s a lot of demand for rental houses right now. Many real estate brokers have built a consistent career by working with customers prepared to sell their homes lower than their actual market worth. The information on how real estate agents make money on rentals will provide you with some guidance on how this can be a good move.

If you’re thinking about buying real estate, go to a real estate agent who has a track record of profiting from rental properties. Look for an agency that has several rental homes available.

They should feature homes in every major city throughout the United States. This will step up your chances of getting a rental. If a realtor does not own the house, they should list it with another agency.

How do Real Estate Agents Make Money on Rentals?

How do Real Estate Agents Make Money on Rentals

Even if you own the property and want to rent it out yourself, you will need to spread the word about it. Putting up adverts in your local newspaper is a great method, to begin with. The majority of individuals searching for a place to reside will want the services of an agent.

People are willing to spend top bucks to have someone show them what they want. This is a highly competitive market, and everyone will hire an agent to save a few dollars. Realtors earn money by receiving commissions depending on the property’s sale price.

These commission checks are deposited directly into the agent’s bank account. Others get directed to the property’s actual owner. It doesn’t matter since the homeowner is paying you to manage the property. The more rental units you get for your home and the greater the commission check you receive, you will earn more revenue.

When you manage more properties, you will make more money. You will make extra profits if you opt for a more significant amount of assets. Aside from that, real estate brokers make money in the following ways:

  • When exhibiting a house to prospective buyers, they use rentals.
  • They get compensated for their property assessment.
  • They get compensated for arranging lease agreements with the landlord and the renters.
  • When the property gets sold, the owners return the keys.

More steps involved

You could wish to have the agents visit your house with an excellent photographer to look at the home when you approach them. They should know how to capture high-quality images of the property you desire and place the camera so that it doesn’t intrude on the homeowner’s privacy.

It would help thoroughly evaluate the home to know if it is perfect for your family. It’s critical that a prospective buyer feels at ease in your property.

The realtor will arrange for the house to be seen by potential buyers after it gets set up. The homeowner will need to vacate the property, and the agents will be liable for any advertising. If you want to sell your asset, you need to find a means to market it.

You may market your house for sale in a variety of ways. Signs may get placed around town and fliers in grocery shops, postcards in mailboxes, and even postings on the internet.

You will, of course, need to rent the home after the showings. You can do it yourself or contact a professional agent to do it for you. If you own the property and want to rent it out yourself, you’ll need a certain level of credit. This amount of credit should be three to four times your yearly salary at the very least.

Rentals are not profitable for credit cards or loans. A landlord loan will serve you more efficiently and save you huge money.

How can Renters Save Money on Real Estate Fees?

How do Real Estate Agents Make Money on Rentals

When there are more available rental units than tenants looking for a house, the landlord is often the one who pays the realtor in return for finding a tenant. Tenants should, however, always guarantee that they will not get charged for the realtor’s services.

During your realtor search, make it clear to prospective realtors that you do not want to pay a commission.

After signing the agreement permitting the agent to serve the tenant, the realtor, and the tenant work together to select a property that ticks as many boxes as possible on the tenant’s list of desires and requirements.

The realtor will assist the renter in avoiding any potential problems and guiding them through the application and screening process. Property that the realtor shows you will come with an owner willing to pay the agent’s fees.

When should renters consider using realtors?

A renter may profit from employing a realtor for the following reasons:

  • When a tenant has a specific need (i.e., it must be within their budget, be in a specified neighborhood/area, etc.).
  • It happens when a tenant is on a tight schedule.
  • When a tenant is coping with an over-saturated rental market with insufficient or few high-quality sites.
  • The vacancy rate in large cities may be near nil, and the finest apartments sell out in days or hours.
  • Realtors would negotiate the bad situations and provide the tenant with a property that meets their needs.

Relocating might be an excellent reason to utilize a realtor to locate a rental space since they know more about the region and market than the prospective tenant.

The realtor would also be knowledgeable about the legislation in the area. They’d be allowed to inform tenants when things like security deposits and evictions aren’t lawful.

A competent realtor also has contacts and knowledge, so they are more likely to know unlisted homes and bargain on their behalf. So, indeed, realtors can assist tenants in a variety of scenarios! Given these considerations, the realtor’s charge is well worth the investment.

When hiring realtors may not be beneficial to renters

If there are a lot of rental apartments available in a specific location, a tenant could be better off spending the time to look them up online. On websites like Zillow, they can compare pricing, amenities, places, and discounts. Usually, landlords with no trouble finding renters have no desire to pay realtor fees. This is valid if alternative applicants do not have to pay such expenses.

The landlord would also be adamant about not negotiating the rent amount. They must pay the realtor or perform the service for free in this situation!

Frequently Asked Questions

How do real estate agents make money on rentals?

Many real estate brokers profit by charging a fee of one month’s rent for locating a renter. The agent’s broker usually receives the tenant’s starting rent and security deposit. He deducts his commission from those funds and pays the remainder to the landlord.

What is the rental property commission?

The money provided to a brokerage for introducing a customer who signs a lease is known as the rental commission. Rental commissions sometimes get represented as a percentage of the yearly rent or months of rent. The typical rental commission is between 5% and 15%. In most markets, the rental commission gets paid by the landlord.

Is it possible to manage my rental property?

Yes. Although you may do it yourself, some landlords prefer to employ cleaners on a contract basis. Given the current epidemic and the necessity for comprehensive cleaning between renters, hiring specialists to conduct a more thorough job is good. 

What is the best way for renters to locate a rental real estate agent?

Using websites like to identify brokers that service the region you want to find a unit or close is a beautiful place to start. You may read their bio or phone them to see if they’d like to assist you in finding a rental home.

Tenants may also ask their friends, relatives, and colleagues to refer them to a realtor who has received positive feedback. If the realtor you meet does not specialize in rental homes, they are likely to know someone who does.

Do realtors earn more money when they sell than when they buy?

No. Realtors are compensated on a commission basis, which is often 5 to 6% of the selling price of a house. The principal broker and the buyer’s agent are generally responsible for this. Fees are usually deducted from the sale profits, whereas purchasers typically do not pay the agent who serves them.


In conclusion, research has shown that the real estate niche provides tremendous earning potential for many people. And if you are thinking of getting in, the above highlight how real estate agents make money on rentals will aid you immensely.

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