What is the commission for renting an apartment and how many times is it paid in 2021?

What is a commission when renting an apartment?

In order to understand how the rental system through intermediaries works and what its advantages and disadvantages are, let’s look at the essence of commission payments to realtors and what does the term commission when renting apartments mean?
A commission is a monetary fee for the amount of work completed, a reward for a person who spent his time and used his practical skills in finding a suitable option for renting an apartment or office space. It is paid to the realtor, that is, the intermediary in concluding the lease agreement.

The commission is paid for the work of the intermediary, which, as a rule, consists of performing several important functions:

• searching for an apartment using databases or using the personal information of an intermediary, suitable rental options;
• direct communication with the tenant and the landlord to conclude a deal and enter the necessary requirements of both parties into the draft agreement;
• discussion of a specific proposal with the tenant of all the stated characteristics of the rented premises;
• negotiations on the transaction price, searching for the optimal monetary solution that will suit both parties in terms of terms and conditions;
• drawing up the final text of the lease agreement and its signing by the parties;
• checking the data in the contract, verifying the contract by a notary (if the parties wish) and completing the transaction after moving into the apartment.

An intermediary realtor professionally assesses the condition of the apartment and the possibility of using it for rent at a specific market price. He objectively approaches the formation of the market price, balancing between maximum personal benefit and the reality of concluding a deal in a specific situation.

Before concluding a transaction, the realtor is responsible for ensuring that the parties comply with the good faith of the agreement and the truthfulness of the information transmitted, and its compliance with the stated requirements.

Acting as a buffer between the client-tenant and the client-owner, the intermediary in the rental transaction remains an independent expert, a person who is interested in completing the agreement and fair observance of the rights of both parties. The longer-term the cooperation and the higher the assessment of the realtor’s work, the greater the chances of expanding the client base and increasing personal income.

That is why such real estate specialists are interested in solving all customer requests on both sides and in finding a compromise solution in terms of price and quality.

At the same time, the realtor will purposefully look for the optimal solution in the shortest possible time, trying to increase the number of clients in the shortest possible time.

To summarize, let's try to answer the question of what does commission mean when renting an apartment and why is this payment more profitable than personal participation in the search for real estate?

First of all, the commission is financial compensation for the work performed and an attempt to find the best possible solution with the help of professionals in the real estate market.

Payment for such services is a fair reward for the time spent renting housing and searching for housing according to the individual requests and requirements of a particular tenant.

Difference from pledge

Deposit and commission are two different concepts. They are sometimes confused, but they have a serious difference that significantly distinguishes the two payments made when renting real estate:

• security deposit is an amount of at least one month's rent that is paid to the landlord;
• The realtor's commission is the intermediary's salary, a fee for the work he has done.

The reason that these two payments are confused is most likely because they are usually paid immediately, in a lump sum, and are divided only between the recipient of the benefit of the lease.

The payment of the total amount is usually made to the realtor himself. It is he who is responsible for dividing payments and transferring the security deposit to the landlord. In some cases, the amount remains with the intermediary, who controls the transaction and conducts settlements between the parties independently.

The tenant himself can split the payments by sending the amount for the realtor's services directly to his account and paying the security deposit personally or to the account of the owner of the real estate.

What is an advance

Another type of consolidation of the business relationship between the landlord and the tenant is the transfer of an advance payment for the use of real estate.

An advance payment is similar to a security deposit, but may differ in size and timing of payment. The advance may, by agreement of the parties, become a separate payment or be included in the amount of the security deposit.

But, as a rule, it consists of the cost of rent over several months, rather than for one security period, which is usually calculated as a calendar month.

To understand the essence of this type of monetary obligation, let us describe the real situation. The landlord agreed to the recipient's conditions for renting the apartment, both in terms of price and terms.

But an important obstacle remains - the landlord requires payment of 50% of the annual rent in one payment. This amount is unaffordable for the tenant and it seemed that the deal was falling apart and would not be completed.

The realtor offers a solution that suits both parties, assessing the real capabilities of the tenant and the needs of the landlord. He acts as a guarantor of the parties’ good faith and offers, instead of the full amount, to make an advance, for example, for a quarter.

This is a completely appropriate payout amount. Plus, the parties agree on monthly rent with a half-month increase for each payment. Such an accelerated compromise calculation will allow you to transfer the amount due within a few months. That is, an advance saves the deal, and everyone benefits.

An advance payment when renting a home guarantees the tenant’s interest in paying for the use of the property. A preliminary agreement between the parties places all the emphasis in the contract and will allow you to quickly get what each party expects. As a rule, the advance payment is not returned upon further implementation of the transaction. This money is included in the payment for each month of rent until the amount is paid in full.

However, these payments and the specific version of the agreement between the parties may differ significantly. Real situations are always unique and finding a compromise between the parties is the realtor’s task.

What is included in the agent minimum?

The standard range of services to support real estate transactions includes:

Responsibility for the services provided lies with the realtor only if an agreement is concluded. Separate clauses of the contractual obligations define the range of his responsibilities. At this moment you need to decide what to pay the realtor for. ,

accompanying the transaction.

Who should pay?

As a rule, when renting an apartment, the tenant pays the agent's fee, but this applies to living space in the middle and low price category.

The owner pays for the rental of luxury real estate, since finding a client for expensive apartments is often difficult. In addition, for many owners of expensive apartments, renting out is a business.

Sometimes the commission can be divided between two interested parties, the owner and the tenant, by mutual agreement.

We offer you a sample contract for the provision of real estate services for the search for residential premises for rent: Download.

Types of commission

Commission can be paid to the agency in two ways:

• Employer. The most common scheme is when the commission for intermediary services is paid by the future tenant of the premises. In this case, the owner of the property does not pay anything. Payment of commissions is made directly upon conclusion of the contract. The client pays a commission for the selection of an apartment carried out by the agency, the showing, the prepared lease agreement;
• The owner. This option is most often used by owners who want to rent out their property as quickly as possible. In this case, the owners enter into an agreement with intermediaries and pay them a commission in the amount that the realtors would have received from the employer if they had chosen the first method. Thus, having received a reward from the owner of the property, the agency puts his apartment up for rent, indicating that it is rented out without a commission for the tenant. Such a move allows you to generate increased interest in the property and rent it out as quickly as possible. This method is beneficial for all parties, since it allows the owner to resolve the issue as soon as possible, the agency to make a quick profit, and the employer to save money. The low popularity of this option for paying a commission is due to the fact that in most cases, owners still prefer to lose time but save money.

Commission amount

What does a commission of 50 mean when renting an apartment?

This is a payment to a realtor or agent for work under an agency agreement, usually the fee varies from 50 to 100% of the monthly rent of the apartment.

The cost of intermediary services often depends on two factors:

1. Number of agents involved in apartment selection. If an agent works together with a realtor from another agency, then they can request 100% of the amount of the apartment. They split the reward in half.
2. Liquidity of living space. The more favorable the price-quality ratio of an apartment, the greater the demand for it, the higher the commission may be.

Read the article, illegally renting out an apartment without paying taxes, what this means for the owner, here.

How to return a deposit for renting an apartment if there is no damage?

If the owner refers to a lack of money, you can warn about going to court or to the tax authorities.

If there is no answer, you should draw up an act of return of the property, and then send it to him by registered mail, and at the same time go to court with the necessary documents. Experts recommend taking photos of the property and the general condition of the apartment.

When going to court, you need to understand that only part of the amount can be returned in this way, since depreciation costs will be deducted from the amount of the deposit.

Is it possible to avoid commission?

Trying to save money, citizens want to find housing without an intermediary. As much as possible? It was noted earlier that finding a suitable option is difficult.

Apartments that are rented for a long time are difficult to find. They are located in special databases, to which only realtors have access. These databases do not contain direct phone numbers of owners.

As an option, you can try specialized sites on which owners post their advertisements, but no one can guarantee that these are not scammers.

There are quite a lot of cases when a person comes and pays money. Then it turns out that the apartment was rented by a completely different person who did not have the right to conclude a lease agreement. And it is impossible to find the culprit.

But if a person is lucky enough to contact the owner of the apartment, a lease agreement must be concluded. It must contain essential terms on the subject of the contract with full characteristics of the rented apartment, as well as a clause on payment: cash or non-cash, term, procedure, periods, etc.

It is also better to specify the lease term, although this condition is not essential; the contract without it will be valid. If the apartment rental lasts more than a year, the period is specified, then the document must be registered with Rosreestr.

Rental rules

The tenant must remember that when renting an apartment, he takes responsibility for the property provided. Thus, the transaction imposes obligations not only on the landlord, but also on the tenant. The rules for renting an apartment are quite simple; they can be formulated in five points.

Set your priorities. What is more critical for you - proximity to the center, low price or developed infrastructure. This will help you choose the most suitable apartment option and not waste energy looking through dozens of options throughout the city.

Choose trusted sources of information. Advertisements on the fence are no longer relevant. It’s better to pay attention to the “Reverify Apartments” project, which in 2.5 years has won the trust of tenants throughout Ukraine. This way you will protect yourself from scammers.

Be careful when viewing. Try to notice the details, the condition of the furniture, plumbing and household appliances. This is necessary so that the owner cannot subsequently accuse you of damaging property.

Check all documents. It is very important that you have the sole owner of the property. And if there are other owners in the documents, so that they write consent or a power of attorney. Another way to check is to search for an apartment using the real estate registry. This way you can find out for yourself whether the data provided by the owner is true.

Protect yourself with a contract. This is the main rule of renting an apartment, which can protect you later from sudden price increases or even eviction.

How to understand the numbers 50-100?

For reference: The average fee for agency intermediary services is 50-100% of the rent for one month.

Its size is influenced by the number of agents searching for a suitable apartment. If two agents work, the commission is equal to a month's rent. If the agent works alone, then the remuneration may be equal to half of this amount.

There is another important factor that determines the size of the commission - the value of the property itself.

Depending on it, the commission can be:

1. Downward. This type occurs if a potential tenant has modest requests for living conditions, and the main thing for him is to quickly move into an apartment, usually a secondary one. Since such tenants do not have a large amount of money, and when concluding a rental agreement, they will have to immediately pay the monthly rent , and commission. The latter may not be so great.
2. Increasing. This type of commission is used if the client is very demanding in terms of housing, in terms of high quality, good location, and the cost of renting the property. In addition, an increased commission for renting out an apartment will have to be paid by the owner of luxury real estate who wants to rent it out at an expensive price to a suitable tenant.

What is an advance?

Advance payment is a preliminary payment that allows you to secure the property you like.

Often people find a suitable option for their future rental that meets all the necessary requirements.

This includes price, location, living conditions and other characteristics of the property .

But it is not always possible to complete a transaction in the near future. For example, there is no financial opportunity to pay the first month’s rent or pay a commission to the agency.

If the ad contains a deposit in addition to the commission amount

Most likely, we are talking about an apartment with high-quality renovation, equipped with furniture and household appliances. Wanting to protect himself from possible damage, the owner of the apartment takes a deposit, usually equal to the amount of rent for a month.

A situation where the advertisement indicates a deposit and a commission for renting an apartment is a sign to the tenant that he will have to pay triple the cost of the apartment at once: rent for a month, the same amount as payment for the agent’s services, and the same amount to give to the owner of the apartment in the form of a deposit.

Sometimes, if the deposit amount is large, the owner provides an installment plan for 2-3 months. The deposit is returned at the end of the rental period, provided that no damage was caused to the apartment during use.

The rental agreement must detail the condition of the apartment at the time of transfer to the tenant. If there are any defects in finishing, furniture, or equipment, they must be recorded in writing. A detailed inventory of property is required.

Payment procedure

The transfer of monetary reward must be made after the following conditions are met:

1. Study of documents confirming ownership ,
2. Reconciliation of receipts for utility bills (it is important to ensure that there are no rent arrears at the time of concluding the contract),
3. Obtaining keys from an object.

The amount of the commission paid must appear in the rental agreement prepared by the agency for the parties.

What is a safe transaction on Avito

Avito is a platform for making money via the Internet and more. With the help of Avito, people can sell and buy any product at different prices. In order to protect people from fraud, the creators of the service introduced a secure transaction on their resource.

What is a safe transaction on Avito? These are the service rules that were introduced to protect users from losing money and fraudulent schemes.

The rules will help you sell and buy goods on Avito without any problems. Everyone will benefit - the seller and the buyer. Below we will look at how a secure trade works.

How to competently transfer collateral to protect your interests

The transfer of collateral usually follows a standard procedure. The tenant independently or with the help of an agent finds an apartment that suits him, meets the owner and inspects the premises.

He can then make an advance (not to be confused with a deposit!) to confirm his intention to conclude a deal.

This way he receives a guarantee that the chosen apartment will not be rented out to someone else. As soon as the rental agreement is signed, he transfers the owner the amount of rent for 1 month, which is a deposit.

The detailed step-by-step algorithm looks like this:

• On the day of signing the documents, the parties meet to sign the documents. If the transaction was carried out through a realtor, he will handle the registration;
• The tenant is invited to once again carefully inspect the premises, the operation of all household appliances and equipment, and check the meter readings;
• After this, an act of acceptance and transfer of the premises is formed. This document was created to describe in detail the condition of the apartment being leased. If there are problems, emphasis should be placed on them;
• The parties sign an agreement, the tenant transfers a deposit and the monthly rental price. If there is a realtor in the transaction, it is also time to pay a commission for intermediary services. The fact of transfer of funds is best certified by a receipt; it will serve as proof.

When the lease expires and the tenant decides to move out, the landlord gives the deposit back to him. For his part, the tenant leaves the house in excellent condition, with working appliances and intact furniture.

Features of signing a rental agreement

The rental agreement for residential premises is concluded between the tenant and the owner and is called the “Tenancy Agreement”, as required by Russian legislation. Its signing takes place in the presence of a realtor, who acts as a kind of witness that the rental transaction of residential real estate has taken place.

The contract must contain mandatory information, the absence of which in the text may render it invalid. Such information should include:

• information about the residential premises being rented, which includes address, total area, number of rooms;
• details of the document establishing the owner’s right to register ownership of the rented living space;
• Full name, passport details and other identification details of both parties;
• the amount of the monthly rent;
• the procedure for making payments for rent and paying for utilities;
• obligations and rights of the parties;
• contract time.

Dangerous ploy: they lure you into an auction

When demand for an apartment exceeds supply, an auction is held between those wishing to rent it. For example, when students come to the city before the school year in August and look for inexpensive housing to rent.

An agent lists an apartment at a low price in order to quickly find more potential tenants. Schedules viewings for everyone at the same time and starts bidding right during viewing. Clients are asked to name their price and sold to the highest bidder. So the price of an apartment is raised by several thousand rubles.

The largest auction I participated in was of 15 people. The largest I've heard of is out of 50.

Dangerous ploy: They advertise an apartment without the owner’s consent

This is how photographs are obtained. The agent calls the owner who is renting out the apartment and says that he has a client and wants to look at the apartment this evening. Sometimes they say that there is a client, but first the agent will look at the apartment without him - supposedly to make sure that the apartment is suitable and not to show the client unsuitable options.

Already at the apartment, the agent says that he needs to take a photo to show the client. Or this is what a fake client says and argues that he wants to show his mother, wife or husband for advice. This is how the agent gets photographs. He advertises the apartment and waits for calls from real employers. When the client appears, he calls the owner and again asks for a viewing.

Counterparties

You involve a friend or acquaintance who plays the role of an intermediary, calls the agencies that rent out the apartments you are interested in and offers to share the commission, because... he will bring a client. As soon as one of the realtors agrees, you go with a friend-“agent”, look at the apartment, if you like it, sign an agreement.

The “agent” friend then receives half the commission from the real estate agent and so you save 50% of the commission, but the friend will have to thank you for the trouble!

If in numbers, then at a rental price of 20,000 rubles, the commission is from 10,000 rubles, i.e. your savings from 5000 rubles. Nuances of the scheme: quite troublesome; your friend needs to understand the specifics of the work of a real estate agent for rent and not make a mistake that he is not a real broker.

How to rent an apartment without an agency and not pay a commission?

Having learned how much money they have to give to the agency, tenants often refuse their services. If a person does not want to draw up an agreement and pay a commission to a realtor, he can try to find an apartment to rent on his own.

This will save money, but will force you to face a number of difficulties. Today there are a number of ways to use agency services without paying for them.

To avoid paying a commission in favor of an intermediary, a person can:

• try to gain access to the organization’s database and independently find a suitable option, and then contact the property owner;
• come to view the apartment with an agent and arrange a meeting with the owner of the property later, and then directly conclude the deal;
• send a dummy for inspection, and subsequently contact the property owner yourself.

Such methods are deception. It is better to act with integrity and pay the commission. This will save significant time.

To complete the transaction, a deposit may be required - an insurance amount that the tenant must provide to the owner of the property as a guarantee of his integrity.

The commission for renting and renting out real estate is a payment for the services of a real estate agency. Cash is provided for assistance in selecting suitable housing and concluding an agreement with the property owner.

Using the services of a realtor will allow you to quickly find the apartment you need, but will lead to the need for additional costs. Their size depends on the rental fee.

Documents upon registration

When paying a commission to a realtor, it is worth drawing up an agreement with the agency . Carefully study what you have been given to sign before giving away money. It may happen that the owner is a fake .

If you paid a commission to a realtor, and then for some reason the owner suddenly terminated the contract or turned out not to be the owner at all, you will not be able to get the money back.

If the contract specifies a specific commission amount, and it is signed by you and the agent, then in the event of force majeure, you can demand a refund of the paid commission from the agency. Perhaps even through the courts. Reputable agencies always formalize the payment of commission as expected; this can also become some guarantee of the purity of the transaction .

Do not rush to enter into contracts and pay commissions to private agents , this can lead to trouble.

Is it possible to get my money back if there are problems?

The answer to this question is negative. The agency is responsible only for those services that it provided to the client.

Thus, if the realtor has fully completed his tasks, then it will not be possible to return the paid commission (if problems arise between the tenant and the landlord) for an apartment rented through an intermediary.

At the same time, under a rental agreement, claims can be brought against the other party in court.

Thus, involving a real estate agency in the procedure for renting (renting) an apartment can significantly speed up and simplify this process. At the same time, it is very important to choose a reliable and conscientious realtor.

Is it possible to do without the help of real estate specialists?

When looking for an apartment, many do without the services of a realtor, turning directly to the owners.

A transaction without an agent does not involve a commission. However, recently there have been fewer and fewer advertisements from direct owners, as they prefer to use the services of intermediaries.

Is it possible to rent an apartment with the help of an agent, but not pay a commission, and do without it? Theoretically, this is possible, but in relation to the realtor it will not be entirely ethical.

The option is as follows: while showing an apartment with an agent, the tenant can secretly agree with the owner to conclude an agreement without an intermediary. If he agrees, they can meet on the appointed day and sign the papers without paying the agent who brought them together a commission.

Landlord reviews

Landlords themselves are also interested in avoiding scammers or careless tenants. Judging by the reviews, they prefer to seek help from agencies, where they can present their list of requirements for future tenants. Homeowners also say that they most often prefer to enter into an agreement, while many residents do not want to bear responsibility. In the reviews of landlords about the peculiarities of renting housing, one can note a wave of indignation over the fact that many tenants do not comply with the rules of renting housing that were specified in the contract, which leads to conflicts.