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

What does commission mean when renting apartments? And why pay the intermediary money? Actually, why pay a certain percentage or a pre-agreed amount when renting housing within the borders of Moscow, St. Petersburg or another city? Why is it worth contacting a specialist and not always relying on your own strength?

Even the simplest option of finding square meters to live in a metropolis or small town is a risk. There is a risk of losing money and the inability to find a cozy place to relax and live. This is especially important if life circumstances have changed and searching for an apartment or office for work is a necessity, and not an attempt to find the best of the best options.

Working with an intermediary allows you to minimize most risks or reduce them to almost zero. Therefore, the percentage paid is a tiny fraction of the worries and incomparable risks during hiring. In addition, this is real work done by a realtor for which it is worth thanking, if only because it saves a lot of time, money and effort in finding the right apartment. The percentage for the legal preparation of the transaction and verification of documents, coordination of the rental area and the quality of the proposed housing is a small compensation for possible lost commercial profits.

Dear readers!

Our articles talk about typical ways to resolve legal issues, but each case is unique. If you want to find out how to solve your specific problem, please contact the online consultant form on the right →

It's fast and free!

Or call us by phone (24/7):

If you want to find out how to solve your particular problem, call us by phone. It's fast and free!

+7 Moscow,

Moscow region

+7 Saint Petersburg,

Leningrad region

+7 Regions
(free call for all regions of Russia)
The realtor independently verifies real estate data. He himself takes extracts from the registers and personally double-checks the information about the names and surnames of those who draw up the agreement. All these functions can, in principle, be performed by a potential tenant. But this will require certain knowledge and experience in working with legal documents and official databases. In addition, in any case, there are costs associated with negotiations, inspection of apartments, data verification, and obtaining official extracts from registers.

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.

Types of commission

There are two types of commission payments for an intermediary:

from the person leasing the property, that is, from the owner to the intermediary;
paid by the tenant for the property received for use.

Sometimes the commission is paid by the real estate company. This is a very rare case and occurs only when the rights to manage real estate have been transferred to it, and the company is looking for clients through an additional information source - partners, colleagues in real estate intermediary services.

Remuneration from the landlord is a less common option, but it still works. Basically, such a fee is paid for the work of a realtor by the owner of an apartment or commercial property who wants to quickly receive rent. Such owners strive to act as efficiently as possible and make a profit from all the property at once, giving it away at the minimum market price to various tenants.

But why in most cases does the employer pay the commission? Property owners often strive to get the maximum benefit, even to the detriment of other, possibly more profitable offers. And therefore, such a desire reduces the volume of offers received, although it increases the rental price.

Commission to the agent by the tenant is a common practice in the Russian real estate market. In this case, all transaction costs are paid by the entrepreneur or individual who receives the property for use.

The agency commission in most cases is a percentage of the transaction. But to provide an incentive to find a profitable rental property, the size of the commission may also depend on the speed of the client’s search, as well as the volume of services performed.

In this case, the total amount for all services provided to the tenant or homeowner is calculated, that is, added up. This is a fairer solution, which forces realtors to be more active and stimulates the work of an intermediary through the procedure for paying commissions.

At the same time, you can determine the price of services using a simple remuneration amount, with a fixed rate. It can be paid to the realtor on a one-time basis within a specified period. In turn, you need to understand that the best incentive for concluding a good deal is the financial interest of the parties, including the realtor.

Real estate agency or private realtor?

In most cases, people who need rental housing prefer to resort to the services of a special agency, although their services are not cheap. There are also those who independently study advertisements for housing rentals.

Agency commission for renting an apartment

The services of a competent realtor, a representative of a reliable real estate agency, can be expensive. The agent does not receive a salary; his earnings depend on the number of transactions completed during the month.

Therefore, when contacting an agency to select an acceptable housing option, the client sees in the contract the amount of the commission that will have to be paid for the work of a professional.

What is a commission when renting an apartment, what is it for?

The standard contract for the selection of housing for rent specifies the following set of services:

searching for information about apartments for rent in the area desired by the customer
selection of at least 5-7 apartment options that meet the parameters set by the customer
organizing viewings of apartments selected by the customer
presence of an agent when viewing apartments
checking the legal purity of the apartment chosen by the customer, which includes checking the property rights to the housing, the legal capacity of the apartment owner, the absence of encumbrances, and rent arrears.
drawing up a legally binding residential lease agreement.

For the work performed, the customer pays a commission, usually equal to the monthly rent for the option approved by the client. Part of the commission goes to the agency and covers the costs of advertising, checking objects and the work of lawyers, part goes to the employee who worked with the client.

Size

How much interest or what amount do realtors charge for renting out an apartment and completing the transaction? There is no general rule here. At least so far, even within their own environment, realtors have not been able to develop uniform rules and regulations. In most cases, the amount of fees for a specialist’s services in the real estate market is influenced by three circumstances:

rental price for one month, while more expensive properties will require higher payment percentages;
geography of the object's location;
the uniqueness of the object and the conditions put forward by the parties to complete the transaction.

The price of the intermediary’s work is also affected by the quality of his work and the speed of the transaction. He searches for rent and rents out real estate using:

internal databases of potential clients that are not publicly available;
tools of a psychologist and marketer, which allows you to achieve maximum effect for all parties;
many years of understanding of the real estate market and the peculiarities of concluding long-term and quick contracts.

More well-known intermediary realtors who have been working in the market for 5-10 years are rated as professionals in their field. Such an expert charges a significant fee for his services, which can reach 100% of the monthly rent. But the speed of completing a transaction potentially increases significantly. At the same time, the realtor negotiates with the parties so as to rent out the apartment at a favorable price and in the current situation, with minimal risks for the parties.

As a rule, a professional intermediary independently draws up all documents, including lease agreements or preliminary agreements. He can also pay for services and monitor the completion of the transaction, including the relocation of the landlord or the transfer of keys, and the fulfillment of financial obligations by the parties.

How to understand the numbers 50 and 100

What does a commission of 50 mean when renting apartments? Why do they sometimes require up to 100 percent commission on the monthly rent? Why can the amount be 60%, 75% or 85% of the contribution?

Indeed, there is no strictly fixed amount of commission and, most likely, there will not be. This is a contractual relationship between the client and the intermediary. How much they agree on depends only on themselves. But why does the cost of realtor or agency services change so much?

It all usually depends on three factors:

the popularity and reliability of the intermediary - realtor or agency;
rental transaction prices and prestige of housing;
complexity of the transaction, including the need to draw up a complete set of documents.

If we are talking about finding an apartment and signing a simple agreement without support, then the price of services usually does not exceed 50% of the monthly rent. It’s another matter if the client contacts a well-known real estate company, which constantly guides the client – the tenant and the owner of the property – from searching to paying the monthly amount for use.

In this case, for comfort in service and a full package of professional services, you will have to pay 100% of the monthly rent. Interim amounts depend on numerous circumstances - the complexity of drawing up the contract and the special wishes of the tenant.

Who should pay

As a rule, the services of a realtor are paid for by the citizen renting a home or office. Despite the fact that this is a fundamentally wrong approach, the traditions of the real estate market have developed exactly like this.

There are examples of successful landlords paying the commission themselves and therefore keeping the cost of entry to a lease to a minimum. This attracts a much larger circle of potential real estate users. In this case, the potential benefit received is significantly higher than the temporary and low rent payment from the tenant.

In most cases, with a zero payment rate on the part of the tenant, the property owner tries to conclude a deal several months in advance. The term of the guaranteed transaction ranges from two to three months to 2-3 years.

When does it become necessary to pay a commission?

When renting out an apartment, the completion of the transaction also means the need to pay for the services of an intermediary. Typically, three payments are made simultaneously upon completion of the lease agreement:

payment of commissions to the intermediary for searching and providing other intermediary services;
payment of a monthly security deposit;
payment for a month or a specified period, in advance - in advance.

The security deposit is a monetary guarantee of compliance with the terms of the transaction and a voluntary guarantee of the client’s integrity. A delay in paying commissions or an attempt to refuse to pay for services under a contract with a realtor may result in the intermediary refusing to complete the transaction. In addition, an attempt to question the work performed, if it is completed and all conditions are met, will lead to litigation and a long-term conflict.

What documents are required?

According to the rules, the agency's commission for renting an apartment should be provided only if there is a drawn up agreement. The document will help protect against the fact that the owner turns out to be a fake. If the commission is paid, but the owner of the apartment decides to terminate the contract, or it turns out that he is not the owner of the property, it will not be possible to get the money back. However, the contract still protects the client. If the agreement specifies a specific amount and it was signed by a realtor, in the event of force majeure, the citizen may demand the return of commission funds. If the company refuses to pay the tenant, he can go to court.

It is better to contact real estate agencies that have earned positive reviews from clients and have been on the market for a long period of time. It is not profitable for such companies to spoil their reputation. They cooperate with verified owners.

It is better to avoid interacting with private agents. They charge a smaller commission, but cooperation with them significantly increases the risk of fraud.

This is interesting: Claim for division of an apartment between spouses

Payment procedure

This decision is also individual. Such a payment is usually made simultaneously with the first payments to the property owner. However, the contract may specify a different period. In order not to create an additional financial burden on the tenant's budget, payment terms can be distributed into several parts. However, as a rule, a one-time payment of commission is stipulated by the contract, and in this case, the demand for payment will be legal.

Payment for the realtor's services is calculated or agreed upon immediately, as a separate clause in the contract. The term of its payment may not be strictly tied to dates and is stipulated by the parties by agreement.

The payment amount in the contract must be indicated in Russian rubles and only conventionally indicated in dollar equivalent. Payments to the intermediary are usually made by transfer to a bank card or by bank transfer, from account to account.

If the parties agree to receive cash, as a rule, a document confirming receipt of money is issued at the place of conclusion of the transaction - a check or order.

Difference from pledge

A citizen pays a commission to realtors for the intermediary services they provide. The deposit is paid directly to the apartment owner .

This is a guarantee that tenants will not move out without warning or damage the property before their departure.

The deposit is not a mandatory element of the lease transaction, since tenants do not always agree to pay additional amounts of money in addition to the standard payment for the first month.

If an agreement is reached between the parties to pay a deposit for housing, then such a clause is written down in the contract (indicating the amount).

Usually the deposit is paid for the last month of stay, that is, equal to the amount of the monthly payment. Thus, the owner of the premises is insured in case of sudden disappearance of residents or damage to property by them.

At the end of the contractual relationship between the parties, tenants have the right to receive back the amount of the deposit paid at the conclusion of the contract.

Registration of the contract and pitfalls

The lease agreement must comply with the basic parameters of the agreements that are drawn up between the client and the party owning the property.

Let us note the most important components of the agreement, which can significantly affect the effectiveness of protecting the rights of the tenant and owner of real estate:

subject of the agreement;
full payment amount;
duration of the contract;
full details of the parties.

Let's look at each point in more detail. The subject of the agreement is the exact coordinates of the leased property, including the full postal address, cadastre coordinates, and other properties of the leased property.

Another point is the full amount of the rental payment. It includes differentiation of payments or includes the cost of rent and utilities.

An important point of the contract is the duration of the contract. This is an equally important component of the agreement, since it may stipulate the continuation of the contract for the permanent continuation of the contract. The period of validity of the agreement can also be fixed.

A necessary clause of the lease agreement is the full details of the parties. For companies, it is necessary to take complete bank details and all registration data, including data on state registers. For individuals - a passport and data from registers on tenants or those who provide real estate for use.

If we talk about the “pitfalls” of a rental agreement, we should immediately point out the possibility of early and without compensation termination of the rental contract. If the rules for such terminations are written in favor of the owner, then one can be afraid of failure to fulfill obligations and attempts, having received advance funds, to use such an advantage.

There is an important point about the details of the parties in the text of the agreement. In addition to checking the data and verifying it against the originals, it is advisable to have it notarized when drawing up an agreement.

If the parties do not want to get notarized, it is better to check the data on state registers and make sure that the documents are real and that there are no real estate disputes in the courts. Entries in the real estate register regarding objections or unresolved disputes may mean that they are trying to deceive the new potential owner and solve their problem at the expense of a bona fide buyer.

Signing a rental agreement and paying for services

When concluding a contract, three persons must be present - the realtor, the owner and the tenant..

The following points must be specified in the contract:

Passport details;
Characteristics of the rented housing - total area, address;
Amount of monthly rent;
Obligations and rights of the parties;
Contract time;
Procedure for paying rent;
Procedure for payment of housing and communal services.

Pay attention to the title of the document. This should be a tenancy agreement, not a rental agreement.

According to Russian legislation, a citizen can rent a place to live only on the basis of a rental agreement.

At the request of interested parties, the realtor can include additional items.

For example, an inventory of property or an agreement on a constant rental amount during the term of the contract.

When concluding an agreement, the tenant should pay attention to the owner’s documents - passport and certificate of ownership of real estate.

In the certificate of ownership, in the section “type of ownership”, the type of right should ideally be indicated - individual property.

This means that the owner is the only owner of this property, and only he has the right to dispose of it.

This is interesting: When to change the electric meter in an apartment

If this section indicates the type of right “common share”, then the owner of this apartment is someone else. This means that the other owner can challenge the concluded rental agreement in court and evict the tenant .

To be on the safe side, it is advisable to sign an agreement with all legal owners of the property.

If for some reason the shareholders cannot appear at the transaction, one of the owners must present a power of attorney to conclude an agreement on their behalf.

Please read the payment clause carefully. If it indicates a fixed amount, then you are not required to pay beyond it, for example, for utilities .

In addition to the rental amount, the agreement may stipulate the tenant’s obligation to bear the costs of housing and communal services.

You need to pay a commission for the provision of real estate services only after signing the contract and receiving the keys to the apartment..

It is not recommended to sign documents with those realtors who ask for their fee in advance.

Before you sign, carefully read all the points of the document. Sometimes it happens that the owner of the apartment turns out to be a figurehead.

Check the owner’s passport, look at the name on utility bills, ask to see a document of ownership.

You may be interested in an article on how to correctly transfer property when renting out an apartment - we draw up an inventory according to the sample, you can read about it here.

Realtor's responsibility

The realtor acts as a guarantor of the owner’s fulfillment of his obligations. That is, he must rent out the apartment on the terms and within the specified period.

If, even in violation of the preliminary agreement, the owner refuses to transfer the housing for use, a lawsuit may begin. However, for a tenant, finding an apartment and moving into it is much more important than trying to punish an unscrupulous owner.

Renting housing in this case becomes the responsibility of the intermediary, and not the one who rents out his square meters. No one is immune from termination of agreements, and therefore experienced realtors or agencies always have several apartments on hand for temporary stay. Then refusing to rent out real estate will not be a crisis decision.

It is important to understand that the realtor will not be held liable, including financially, for the cancellation of the contract if this occurred due to hostile relations between the parties.

The realtor is not a party to the contract. His commission is payment for work on drawing up, not terminating, contractual obligations. In any case, the intermediary plays the role of a person who brings the client and the owner together and offers options for cooperation. This is where the function of a real estate specialist ends. However, separate clauses of the agreement may indicate an obligation to conduct business upon termination of the lease agreement.

Rent without commission

This option is quite possible. But it mainly applies to employers. As we said above, the search for a client to rent an apartment can be fully paid for by the owner. This is the most civilized way of finding tenants. But not all owners of real estate, including liquid, comfortable and popular ones, consider it their duty to pay for the services of a realtor when searching for a client.

Renting with a minimum commission is possible when demand for rental is low. It is convenient to rent an apartment in winter or spring. In most cases, potential tenants are looking for suitable options in the summer or early autumn.

When there is a decline in demand, it is better to be patient and dive into the search for a suitable option. However, during a market downturn and fewer offers, you can find a very good option at high discounts.

There is only one danger - despite the fact that there are cheaper options, you will not be able to find an option that is not the most convenient and suitable in terms of location and other properties. But renting real estate during the low season is much cheaper than during the peak season.

There is another option - searching through advertisements, including online sites, catalogs, and specialized publications. Finding the required advertisement will require a lot of time and effort. And also all risks during decision-making, transfer of money, inspection of the apartment, the potential tenant takes upon himself. It should also be noted that this search will still not be free and will require ongoing costs:

acquisition of publications;
use of office equipment for printouts;
telephone calls to potential clients;
on-site visits (fuel or car rental costs).

As a result, these costs may, if not equal to the real estate percentage, then reach this figure.

The only case where you can definitely do without real estate services is renting out property or renting an apartment from a person whom the client knows well and has a high level of trust in. And yet, experts recommend that in this case, too, draw up at least the simplest agreement in which you indicate the minimum requirements - cost, terms and names/details of the parties.

Such an agreement will protect the parties from misunderstanding of certain issues regarding the lease and will allow them to maintain friendship or family relationships without clarifying the relationship over a penny sum.

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.

In this case, the only option to secure the property you like is to make an advance payment .

Read about what to look for when inspecting an apartment here.

The amount of the advance is agreed upon by the parties and paid to the owner of the property. In response to this, the owner removes the apartment from rent .

The advance must be paid on the basis of the concluded preliminary agreement .

Otherwise, there is a risk of running into scammers in the person of an unscrupulous realtor or a dishonest owner of the property.

The realtor and the landlord may be in cahoots and stop communicating after receiving the advance payment.

In this case, it is impossible to prove anything, since the fact of transfer of the advance will not be documented.

Reputable real estate agencies provide clients with the opportunity to draw up a preliminary agreement , which not only specifies the amount of the advance payment , but also the conditions for its return .

Often the advance payment is not returned , but is included in the cost of the subsequent rental payment.

Useful video

How is the rental commission paid and by whom? These questions are answered by a real estate market expert. In this video link, you can also hear an expert opinion on what to pay a realtor for. What should be the rate of the real estate seller or owner when renting out an apartment or selling it at market prices? This is also discussed in the video.

Another video gives an understanding of how to rent an apartment correctly and avoid mistakes. We will also talk about all the little things that can turn into major troubles when completing a transaction.