June, 2008:
How are rental agents paid?
I just received this:
I am a student interested in the field of real estate. I understand that a real estate agent makes money on the sale of a property based upon a percentage of the final sale price. I was wondering how a real estate agent makes money on a lease of a rental property?
Thanks for the help, Jim
A landlord lists his property with a real estate agent for a number of reasons. The landlord benefits from the agent’s experience and connections, but also because the agent has access to the MLS (or Multiple Listing Service) and other venues for promoting the rental property.
There are many ways that a rental listing can be charged, but most usually the landlord agrees to pay a portion of the first month’s rent to the listing agent. The more the rent, the higher the commission paid. Landlords are generally happy to pay this because a listing agent saves them time and money (as compared to ads in the paper plus dealing with calls from unqualified renters).
If the renter has his own agent, the listing agent will pay a predetermined portion of the commission to the selling agent (as the renter’s agent is called). Please let me know if this helps.
How are rental agents paid?
I just received this:
I am a student interested in the field of real estate. I understand that a real estate agent makes money on the sale of a property based upon a percentage of the final sale price. I was wondering how a real estate agent makes money on a lease of a rental property?
Thanks for the help, Jim
A landlord lists his property with a real estate agent for a number of reasons. The landlord benefits from the agent’s experience and connections, but also because the agent has access to the MLS (or Multiple Listing Service) and other venues for promoting the rental property.
There are many ways that a rental listing can be charged, but most usually the landlord agrees to pay a portion of the first month’s rent to the listing agent. The more the rent, the higher the commission paid. Landlords are generally happy to pay this because a listing agent saves them time and money (as compared to ads in the paper plus dealing with calls from unqualified renters).
If the renter has his own agent, the listing agent will pay a predetermined portion of the commission to the selling agent (as the renter’s agent is called). Please let me know if this helps.
When Renters Attack!
Some of the best blogs I’ve read came from agents venting. That’s why I’ve decided to share the tale of two potential renters that did not work out.
Let me set the stage by saying most of my business is in the condo market. Additionally, my offices are next door to the Belle View condos. These are cute and quaint garden style condos on the Potomac in a neighborhood second to none. As a result of these two factors, I get quite a few calls from people who want to rent in Belle View. Montebello is another great condo community very close to my office. As every real estate agent knows, I make very little money from these rentals.
But I do take renters as clients for a number of reasons. Firstly, there are the self-serving reasons. Many renters will one day be buyers. And for a very few of those renters that day is today. Additionally, having a healthy property management business and assisting renters keeps me in a position to market some of the property we have for rent. But I don’t help renters for entirely
self-serving reasons. I actually enjoy helping people find the place of their dreams, and renters’ dreams are usually smaller and easier to fill than buyers’ dreams. For me it’s a community service and a role I’m glad to fill.
But lately, a confluence of Craigslist and the price of gas coupled with a diminishing availability of my precious time, have caused me to be a bit more frank with potential renters when they call. My potential clients are shocked and sometimes offended at my direct stance and firm position about rentals.
Renter 1, we’ll call her Sally, emailed me after discovering Montbello through my website. Sally was delighted with the community and surprised by the affordability of the rents. Sally contacted me via email and I emailed her a list of everything that was available in the MLS in Belle View for rent. Sally had very particular tastes and wanted me to preview the units and just take her to the ones that suited her specifications. (Thankfully I did not do this.) Sally wanted to make an appointment to view, but needed some flexibility “because she was viewing another place” at 1 pm that day. I told Sally she should have
her other agent show her all the properties. The other listing was (you
guessed it) from Craigslist.
Sally was offended by my response. So Sally said she would find another agent to show her the rentals. I sincerely wished her well. Renter 2, “Jane”, called me to look at units in Belle View. I asked Jane if she had a rental agent. Jane said, no, she was familiar with the area and was going to search on her own. I said I would be happy to answer her questions and would be happy to give her all the free advice she wanted, but that I wasn’t going to show her any properties
unless I was her rental agent.
Jane asked about Belle View and the neighborhood so I proceeded to tell her all about New Alexandria. I told Jane about the good and the bad. I don’t sugarcoat. I don’t sell. It is my practice to tell the truth and let the client decide. I explained that it makes no difference to me if she wanted to go to Belle View or anywhere else. I am licensed anywhere in the Commonwealth of Virginia. My only goal is to see to my client’s satisfaction. Jane asked to tour several Belle View listings. I told her that I could only do so in a capacity as her rental agent. I further explained to Jane that she could call other agents. In fact, I could give her the name of other agents to call. But for me, I was not going to show her any property unless she agreed to be my client.
Jane replied that she was both perplexed and perturbed. Jane said,”How can I make a decision on whether I want to rent if I can’t see the inside of the property?”
I wouldn’t budge. If she wasn’t going to let me be her agent, then I have no desire to show her any property. Then, I explained to Jane, “Look if you’re determined to see the inside of Belle View, but you don’t want my services as a rental agent, then I’ll take a retainer of $200. That $200 will be refunded if and when you rent something—anything—in Virginia.”
Jane said, “So I have to pay to see this rental?!”
I said, “No, this is a deposit. There is no cost to you if you rent. This is just my insurance that you’re not going to waste my time.”
Jane said, “Well I can walk into any rental complex anywhere.” I said, “Then you should do just that. But you can’t walk into Belle View. This is not an apartment complex. This is a condominium community. You can’t enter the building without an escort.”
Jane was getting angry now. “But how can I rent if I can’t see.”
I told her, “You’ll need a rental agent.”
Jane said, “But I don’t need a rental agent. I’m looking for things on my own.”
When your mind is in the customer service mode, it’s difficult to think straight when the client begins to attack. I don’t argue with clients. I satisfy clients. That’s why I was like a deer in the headlights when she began to debate with me and demand that I show her the property. But I was not budging because I have been burned one too many times by potential renters who are shopping Craigslist. I said to Jane, “I don’t know what to tell you. Try Craigslist.”
Jane answered with a discourteous huff and hung up on me. She just didn’t get it and was going to be angry at me unless I complied with her worldview.
The solution to this problem is that we as realtors need to embark on a renter education program for the benefit of both landlords and renters. We need to explain to renters why we operate the way we do. This way people aren’t angry when things don’t go as they expect.
Here are a few things that renters need to know:
- Rental commissions are small.
- Real estate agents are licensed professionals.
- Rental agents at apartment complexes are usually not licensed and serve the apartment’s goals.
- A real estate agent serves the client.
- A real estate agent isn’t going to try to convince you to rent a specific property.
- The agent couldn’t care less where you rent.
- The agent wants his client to get a good deal on his or her rental.
- A real estate agent knows more about the area and what is available than you and your circle of friends.
- A real estate agent is not part of the seedy Craigslist underworld.
My pet peeve about renters? I make a lot of money from buyers and they never stand me up. Buyers make appointments and keep appointments. I make very little from renters and many renters have stood me up for appointments. I continue to treat each new rental client with respect. Here’s what renters should know about renting a condo.
- Condos are generally cheaper and better than apartments,
- There are hurdles to renting a condo that you won’t find with an apartment.
- A renter can’t just walk in and tour a condo, just as you can’t
walk into people’s houses if you are interested in renting a house. - A renter must with the association’s rules and the landlords rules.
Just because the association allows pets, doesn’t mean the landlord allows pets.
- A renter can’t just walk in and tour a condo, just as you can’t
What every renter should know about condominiums.
As the primary mover and shaker in Condo Alexandria, I field calls every single day from renters who are interested in condominiums. The names and locations change but there are a few fundamental misconceptions that are so common, I feel the need to write this note for the general benefit of the world at large.
It looks like an apartment, but it’s not an apartment.
First of all, a renter needs to understand the difference between an apartment and a condominium. An apartment, or any multi-family dwelling, is owned by a single entity. Most usually the owner is a company, but more rarely an individual owns the property. Employees of the apartment complex, or the owner himself, manages the property.
A condominium is different because there are many owners, meaning each unit is individually titled. The owners of a given condominium complex make up something called a condominium association. The association jointly owns the common areas such as the lobby and the lawns. The association oversees the management of the property.
There is no rental office: you need an agent.
When you rent at an apartment complex, you’ll see a big sign that says “RENTAL OFFICE”. That office is staffed by folks whose job it is to explain to you why that particular building is the greatest place to live in the world. They are generally helpful and pleasant and they will gladly show you a model apartment and give you an idea of what is “coming available”.
A condominium complex is completely different. The condo office is filled with employees of the condominium association. The employees at the condo office are concerned with the maintenance and security of the building. They could care less where you rent or where you live. In most condominiums in Northern Virginia, staff won’t allow you to enter the property and they won’t show you any rentals here or anywhere else. The staff has no idea what is available or what is “coming available”.
A condominium complex looks like an apartment building on outside, but it’s more like a neighborhood full of townhouses or houses. In a neighborhood everyone lives in the same place with similar housing but each person owns their own house. If you want to rent in that neighborhood, you CAN’T do so by banging on people’s doors and asking them to see their house. Nobody in the neighborhood knows “what’s coming available”. If you want to tour a house in a neighborhood, you need a real estate agent.
It’s the same in a condo. If you don’t have an agent you can’t see a condo, or any private residence. Homeowners don’t want strange people walking through their house and they don’t want to make allowances unless a real estate agent knows their is a possibility that you can afford the rent.
There are always other options.
If you don’t want a rental agent, you do have a choice. You can rent from an apartment complex—less hassles on the front end, more hassles on the back end. Or, you can take your chances on Craigslist. My advice: Craigslist is great for room shares, but doesn’t work so well for grown-ups.
The most important thing every renter should know about condos.
Then, the last and most important thing any renter should know about condos: in today’s market purchasing a condo will cost you a few dollars more each month than a renting a condo. But buying a condo will cost you less on an annual basis.
How is this possible? Condo owners pay association fees and mortgage. Taken together, a first time buyer with a low down payment will have payment slightly higher than a rental. But each year we all file taxes. Renters take a standard deduction. But, property owners can deduct real estate taxes, mortgage interest, depreciation and certain other expenses from their taxes. This can amount to thousands of real dollars in your pocket each year.
Don’t forget, next year, the renter will get a rent increase. Next year, the mortgage will be the same.
It’s your choice, but this is the best time to buy in the last 5 years.
This article reprinted by permission of CondoBenefits.com. Condo Experts contact me to get your free listing at CondoBenefits.com
When Renters Attack!
Some of the best blogs I’ve read came from agents venting. That’s why I’ve decided to share the tale of two potential renters that did not work out.
Let me set the stage by saying most of my business is in the condo market. Additionally, my offices are next door to a Belle View condos. These are cute and quaint garden style condos on the Potomac in a neighborhood second to none. As a result of these two factors, I get quite a few calls from people who want to rent in Belle View. Montebello is another great condo community very close to my office. As every real estate agent knows, I make very little money from these rentals.
But I do take renters as clients for a number of reasons. Firstly, there are the self-serving reasons. Many renters will one day be buyers. And for a very few of those renters that day is today. Additionally, have a healthy property management business and assisting renters keeps me in a position to market some of the property we have for rent. But I don’t help renters for entirely self-serving reasons. I actually enjoy helping people find the place of their dreams, and renters’ dreams are usually smaller and easier to fill than buyers’ dreams. For me it’s a community service and a role I’m glad to fill.
But lately, a confluence of Craigslist and the price of gas coupled with a diminishing availability of my precious time, have caused me to be a bit more frank with potential renters when they call. My potential clients are shocked and sometimes offended at my direct stance and firm position about rentals.
Renter 1, we’ll call her Sally, emailed me after discovering Montbello through my website. Sally was delighted with the community and surprised by the affordability of the rents. Sally contacted me via email and I emailed her a list of everything that was available in the MLS in Belle View for rent. Sally had very particular tastes and wanted me to preview the units and just take her to the ones that suited her specifications. (Thankfully I did not do this.) Sally wanted to make an appointment to view, but needed some flexibility “because she was viewing another place” at 1 pm that day. I told Sally she should have her other agent show her all the properties. The other listing was (you guessed it) from Craigslist.
Sally was offended by my response. So Sally said she would find another agent to show her the rentals. I sincerely wished her well.
Renter 2, “Jane”, called me to look at units in Belle View. I asked Jane if she had a rental agent. Jane said, no, she was familiar with the area and was going to search on her own. I said I would be happy to answer her questions and would be happy to give her all the free advice she wanted, but that I wasn’t going to show her any properties unless I was her rental agent.
Jane asked about Belle View and the neighborhood so I proceeded to tell her all about New Alexandria. I told Jane about the good and the bad. I don’t sugarcoat. I don’t sell. It is my practice to tell the truth and let the client decide. I explained that it makes no difference to me if she wanted to go to Belle View or anywhere else. I am licensed anywhere in the Commonwealth of Virginia. My only goal is to see to my client’s satisfaction.
Jane asked to tour several Belle View listings. I told her that I could only do so in a capacity as her rental agent. I further explained to Jane that she could call other agents. In fact, I could give her the name of other agents to call. But for me, I was not going to show her any property unless she agreed to be my client.
Jane replied that she was both perplexed and perturbed. Jane said,”How can I make a decision on whether I want to rent if I can’t see the inside of the property?”
I wouldn’t budge. If she wasn’t going to let me be her agent, then I have no desire to show her any property. Then, I explained to Jane, “Look if you’re determined to see the inside of Belle View, but you don’t want my services as a rental agent, then I’ll take a retainer of $200. That $200 will be refunded if and when you rent something— anything—in Virginia.”
Jane said, “So I have to pay to see this rental?!”
I said, “No, this is a deposit. There is no cost to you if you rent. This is just my insurance that you’re not going to waste my time.”
Jane said, “Well I can walk into any rental complex anywhere.”
I said, “Then you should do just that. But you can’t walk into Belle View. This is not an apartment complex. This is a condominium community. You can’t enter the building without an escort.”
Jane was getting angry now. “But how can I rent if I can’t see.”
I told her, “You’ll need a rental agent.”
Jane said, “But I don’t need a rental agent. I’m looking for things on my own.”
When your mind is in the customer service mode, it’s difficult to think straight when the client begins to attack. I don’t argue with clients. I satisfy clients. That’s why I was like a deer in the headlights when she began to debate with me and demand that I show her the property. But I was not budging because I have been burned one too many times by potential renters who are shopping Craigslist. I said to Jane, “I don’t know what to tell you. Try Craigslist.”
Jane answered with a discourteous huff and hung up on me. She just didn’t get it and was going to be angry at me unless I complied with her worldview.
The solution to this problem is that we as realtors need to embark on a renter education program for the benefit of both landlords and renters. We need to explain to renters why we operate the way we do. This way people aren’t angry when things don’t go as they expect.
Here are a few things that renters need to know:
- Rental commissions are small.
- Real estate agents are licensed professionals.
- Rental agents at apartment complexes are usually not licensed and serve the apartment’s goals.
- A real estate agent serves the client.
- A real estate agent isn’t going to try to convince you to rent a specific property.
- The agent could care less where you rent.
- The agent wants his client to get a good deal on his or her rental.
- A real estate agent knows more about the area and what is available than you and your circle of friends.
- A real estate agent is not part of the seedy Craigslist underworld.
My pet peeve about renters? I make a lot of money from buyers and they never stand me up. Buyers make appointments and keep appointments. I make very little from renters and many renters have stood me up for appointments. I continue to treat each new rental client with respect. Here’s what renters should know about renting a condo.
- Condos are generally cheaper and better than apartments,
- There are hurdles to renting a condo that you won’t find with an apartment.
- A renter can’t just walk in and tour a condo, just as you can’t walk into people’s houses if you are interested in renting a house.
- A renter must with the association’s rules and the landlords rules. Just because the association allows pets, doesn’t mean the landlord allows pets.
What every renter should know about condominiums.
As the primary mover and shaker in Condo Alexandria, I field calls every single day from renters who are interested in condominiums. The names and locations change, but there are a few fundamental misconceptions that are so common, I feel the need to write this note for the general benefit of the world at large.
It looks like an apartment, but it’s not an apartment.
First of all, a renter needs to understand the difference between an apartment and a condominium. An apartment, or any multi-family dwelling, is owned by a single entity. Most usually the owner is a company, but more rarely an individual owns the property. Employees of the apartment complex, or the owner himself, manages the property.
A condominium is different because there are many owners, meaning each unit is individually titled. The owners of a given condominium complex make up something called a condominium association. The
association jointly owns the common areas such as the lobby and the lawns. The association oversees the management of the property.
There is no rental office: you need an agent.
When you rent at an apartment complex, you’ll see a big sign that says “RENTAL OFFICE”. That office is staffed by folks whose job it is to explain to you why that particular building is the greatest place to live in the world. They are generally helpful and pleasant and they will gladly show you a model apartment and give you an idea of what is “coming available”.
A condominium complex is completely different. The condo office is
filled with employees of the condominium association. The employees at
the condo office are concerned with the maintenance and security of the
building. They couldn’t care less where you rent or where you live. In most condominiums in Northern Virginia, staff won’t allow you to enter the property and they won’t show you any rentals here or anywhere else. The staff has no idea what is available or what is “coming available”.
A condominium complex looks like an apartment building on outside, but it’s more like a neighborhood full of townhouses or houses. In a neighborhood everyone lives in the same place with similar housing but each person owns their own house. If you want to rent in that neighborhood, you CAN’T do so by banging on people’s doors and asking them to see their house. Nobody in the neighborhood knows “what’s coming available”. If you want to tour a house in a neighborhood, you need a real estate agent.
It’s the same in a condo. If you don’t have an agent you can’t see a condo, or any private residence. Homeowners don’t want strange people walking through their house and they don’t want to make allowances unless a real estate agent knows their is a possibility that you can afford the rent.
There are always other options.
If you don’t want a rental agent, you do have a choice. You can rent from an apartment complex—less hassles on the front end, more hassles on the back end. Or, you can take your chances on Craigslist. My advice: Craigslist is great for room shares, but doesn’t work so well for grown-ups.
The most important thing every renter should know about condos.
Then, the last and most important thing any renter should know about condos: in today’s market purchasing a condo will cost you a few dollars more each
month than a renting a condo. But buying a condo will cost you less on an annual basis.
How is this possible? Condo owners pay association fees and mortgage. Taken together, a first time buyer with a low down payment will have payment slightly higher than a rental. But each year we all file taxes. Renters take a standard deduction. But, property owners can deduct real estate taxes, mortgage interest, depreciation and certain other expenses from their taxes. This can amount to thousands of real dollars in your pocket each year.
Don’t forget, next year, the renter will get a rent increase. Next year, the mortgage will be the same.
It’s your choice, but this is the best time to buy in the last 5 years. This article reprinted by permission of CondoBenefits.com. Condo Experts contact me to get your free listing at CondoBenefits.com
Area Museums and Historical Sites
Mount Vernon Estate & Gardens is the oldest national historic 
preservation organization in the country, and it has always been in the forefront of the restoration field. Mount Vernon is the most popular historic estate in America and is open 365 days a year. Mount Vernon was the home of our first President George Washington. The grounds are well-preserved as is the home itself.
Alexandria Lyceum is a grand hall built in the late 1800′s to provide a place for lectures, scientific experiments and quiet reading. Since that time, it has been a Civil War hospital, a private home, an office building and the nation’s first Bicentennial Center. In 1985, The Lyceum became Alexandria’s History Museum, providing exhibitions, school programs, lectures and concerts, volunteer opportunities and space for rental functions for the community. The Lyceum Museum Shop carries a wide variety of maps, books, note cards and special items related to Alexandria’s history. The present-day Lyceum Company serves the museum as a membership and fund-raising organization.
Walk to Old Towne! Old Towne is filled with
historic landmarks, carriage rides and walking history tours.
Just a few miles down George Washington Parkway is the nationally renown collection of museums called the Smithsonian Institution. The Smithsonian National Zoological Park is a wonderful zoo.
Civil War enthusiasts might want to inspect Fort Willard just as President Lincoln did. Fort Willard has long since abandoned its military use and is now a quiet park like Fort Hunt.
If you are interested in architecture and local history visit Frank Lloyd Wright’s Pope-Leighey House or the Woodlawn Plantation. The Collingwood Library and musuem is dedicated to providing information about our national heritage to the American Public. Collingwood is available to anyone who cares to learn of the heroic efforts made by American Patriots, particularly members of the Masonic Fraternity, in founding and developing this, the greatest nation on earth.
Collingwood is a resource as a local library but also interesting place to visit in it’s own right.
Barcroft Park
Barcroft Park is 65 acres of highly-maintained family oriented recreational facilities. Barcroft supports a variety of sports and family activities. Barcroft is the home for several baseball leagues as there are 5 baseball diamonds with bleachers here. Four of these fields are for youth; one is for one adults. There is a batting cage to support the baseball community.
Barcroft has a a lighted rectangular playing field for sports like soccer, football or rugby. This field has a synthetic surface, concession stand, restrooms, and goals. Other sports are also supported by:
- a basketball court;
- two new tennis courts (opened in 2007);
- a volleyball court;
- a handball court;
- and horseshoe pit.
At this location, Barcroft Sports and Fitness Center has a gymnasium to support several indoor sports. The gymnasium has everything needed
for a boxer to train. This includes a boxing room with speed and punching bags, sparring ring, and floor exercise area. The gym can also host basketball, floor hockey, and indoor soccer. On-site, there are a variety of classes such as
- aerobics,
- boxing/kick boxing,
- and gymnastics.
For the benefit of picnickers and visitors the park has three water
fountains, a rental picnic shelter, picnic tables, charcoal grills. There is also a paved path throughout the park to walk, jog or bike. That path has a bridge, and stream.
Hours for the park are sunrise to half hour after sunset except on
lighted facilities. The facilities are open Tuesday, Thursday and
weekends.
4200 South Four Mile Run Drive
Arlington, VA 22204
(703) 228-0700
Park Map (PDF)
Barcroft is a part of what makes Arlington such a great place to live. To search condos in Arlington
or property of any type in Northern Virginia, try our fast and free
database of all available properties. Barcroft is located not far from Skyline Square and Skyline Plaza.
Barcroft Park
Barcroft Park
Barcroft Park is 65 acres of highly-maintained family oriented recreational facilities. Barcroft supports a variety of sports and family activities. Barcroft is the home for several baseball leagues as there are 5 baseball diamonds with bleachers here. Four of these fields are for youth; one is for one adults. There is a batting cage to support the baseball community.
Barcroft has a a lighted rectangular playing field for sports like soccer, football or rugby. This field has a synthetic surface, concession stand, restrooms, and goals. Other sports are also supported by:
- a basketball court;
- two new tennis courts (opened in 2007);
- a volleyball court;
- a handball court;
- and horseshoe pit.
At this location, Barcroft Sports and Fitness Center has a gymnasium to support several indoor sports. The gymnasium has everything needed for a boxer to train. This includes a boxing room with speed and punching bags, sparring ring, and floor exercise area. The gym can also host basketball, floor hockey, and indoor soccer. On-site, there are a variety of classes such as
- aerobics,
- boxing/kick boxing,
- and gymnastics.
For the benefit of picnickers and visitors the park has three water fountains, a rental picnic shelter, picnic tables, charcoal grills. There is also a paved path throughout the park to walk, jog or bike. That path has a bridge, and stream.
Hours for the park are sunrise to half hour after sunset except on lighted facilities. The facilities are open Tuesday, Thursday and weekends.
4200 South Four Mile Run Drive
Arlington, VA 22204
(703) 228-0700
Park Map (PDF)
Baseball field at Barcroft Park
Barcroft is a part of what makes Arlington such a great place to live. To search condos in Arlington or property of any type in Northern Virginia, try our fast and free database of all available properties. Barcroft is located not far from Skyline Square and Skyline Plaza.
