What Are Rental Agent Fees and Are They Worth It?

April 27, 2022
rental agent fees are they worth it?

Every landlord wants the best deal or services at the lowest cost possible. And one of the costs incurred when involving professionals is the rental agent fees. But, should the commission be the only issue to focus on? There are usually other factors that you should open your eyes to.

For example, the time factor is an essential element in your life and how you use it. The case might be you are not experienced in dealing with tenants or have any real estate background. That means you will waste time in the trial-and-error phase. 

It’s better to rely on the agent’s services and incur the real estate agent rental fees than waste your days chasing tenants. Focus on picking out a reputable and experienced agent in town. So, can you benefit from incurring rental agents’ fees?

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1. Your location might call for it

If you want to move to a vibrant neighbourhood, a professional by your side can be helpful and valuable. A real estate agent will give you current and updated information, assessment, and advice. After all, they know the area inside and out. They can also give you the history of a particular property beforehand. 

This will save you time and a lot of effort searching on the streets. They can match your taste and preferences thanks to their experience.

2. They have the arsenal you need

Real estate agents are prepared for war, which means that they have all the skills needed to help their client land a deal. It is vital to understand that this is their job, and they are obligated to give their best. They come in handy with their negotiation skills, experience, and ability to give their clients perspective.

Negotiation is all about the art of bargaining. They know what works and what doesn’t and will ensure that they cut you the best deal. You will be less likely to fail and lose money or land bad tenants. 

It’s clear that rental agents know more than you do and will give you a neutral and objective response. You will be able to make better decisions and have a better portfolio of tenants or investments.

3. Great marketing power

rental agent fees

Marketing is king when you try to sell your property or lease it. People cannot buy what they don’t know or what they cannot see. You might feel that you need to sell your house on the internet and have to pay for an ad or an online community. 

You will cut through this process when you have a real estate agent. Most agents have established networks in the area of operation. You will have potential buyers and tenants at your disposal without any hustle or headache. 

What does this mean for you? Reduced vacancy rate and time for your property. With less time on the market, you can start enjoying the benefits of owning a rental property sooner. 

4. Reviewing rental rates and maintaining tenants

Like any other market, the real estate market has cycles. The two more common ones are the boom and the recession. 

During a boom, the area experiences a surge in property demand. A reputable agent will have seen the signs and advised their landlord accordingly. Property owners should increase their rental rates, taking advantage of the upsurge. 

The same goes for a recession in the property market. Take, for example, during the height of the Covid-19 pandemic. Should a landlord review rent downwards and incur losses? That’s where the expertise of a rental agent comes in. 

They can help you navigate through these trying times. Their knowledge could be what keeps your investment in real estate alive. 

5. More likely to avoid a scam

Scams exist and scar a person. Possibly, you may have lost thousands of dollars in savings, including paying for rental agent fees. Of more consequence is the mental scarring and distrust that you now have. To avoid such a scenario, rely on a trusted real estate expert in the region. 

Scams come in all shapes and sizes. Some of the more common ones include wire transfer frauds, fake listings, and forged title deeds. Reduce the possibility of such occurring with a professional by your side. 

The onus also lies with you in choosing a reputable real estate agent. Not anybody who claims to be an agent is one. Is the estate agent registered or associated with a renowned estate professional body? 

Some of the nation’s real estate bodies include the Real Estate Institute of New South Wales and the National Real Estate Association. 

Before signing any agency agreement, do your due diligence. Confirm the accreditation of the real estate agent or company. 

rental agent fees

6. Compliance with the law

Property is at the centre of any society. It plays and has significant cultural, economic, and psychological implications for a community. The government has set up many laws that govern it to protect the property industry. 

Are you aware of these laws? The chances are high that you don’t know which enforceable rules are to be applied. What about the paperwork with the relevant registries? Is there a need for a valuation or home inspection service?

Real estate agent fees are not the only consideration. Protect yourself and the investment by relying on a property expert. All of a sudden the rental agent fees seems almost insignificant, no?

7. Maintaining relationships with the tenant/buyer

Professionals care about their job and how their clients feel. After cashing in real estate commissions and rental agent fees, the real pros usually know the job is not done. They make a phone call to their client to see how they are doing or what they have done to their new home. 

This relationship is crucial and can keep the tenants happy throughout their lease term. But, it takes time to stay in touch and maintain such relations, which you don’t have. 

It’s then better to let them do what they are good at.

Value for rental agent fees incurred

Looking for your dream home? 

We can also help you out in that department. Browse our search page to check out some amazing listings available right now. But don’t just stop there, download our app to get the full Soho experience.

Just remember to shortlist or swipe left on our listings so we can send you others that better match what you’re looking for.

Join Soho for free, the new way to discover and swipe your dream home, connect to experts in the real estate community and stay updated with market trends when you are buying, renting or selling property.
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