Realtor Fees for Rentals in Texas – Overview

When renting any property for your next home, it’s important to note that some of the fees and money involved in the process go to the realtor helping with the rental.

You may wonder if you, the renter, have to pay the realtor fees or if the property owner does.

Young Woman Signing Rental Contract With Realtor Or Landlord. - Texas View
Young Woman Signing Rental Contract With Realtor Or Landlord. - Texas View

Who Pays The Realtor Fees For Rentals In Texas?

When paying realtor fees for rentals in Texas, it depends on the prime individual: the buyer or seller. Sometimes no realtor is present, so the middleman is cut out, and a commission is void from the conversation. Although, the market can vary when selling, renting, or buying a home.

Why Do You Need a Realtor for Rentals in Texas?

In Houston, the property owner often pays a commission for the rental to the listing agent; this happens due to a surplus of homes and not enough buyers in the market, forcing the property owner to subjugate themselves to an agent. 

Using a realtor for rentals in Texas is not uncommon in the housing realm; it lessens the chance of stress amongst both renter and lessor due to a medium between them.

Landlord’s Market

If it is a landlord’s market, meaning more people are looking to rent than places available, renters pay the commission to the listing agents. It becomes difficult for a buyer to search for a home when there is a lack of homes for sale.

Renter’s Market

If there is a surplus of homes for rent, the market is a renter’s market, and a property owner may turn to a listing agent for assistance. A property owner will struggle to rent their home to anybody when homes around them are available to sell, so having a listing agent will increase their odds of selling. 

The property owner will pay a commission fee to the listing agent because they hired the realtor, not the renter. It depends on who hires the realtor.

Apartment Building With Cars On Outdoor Parking Garage In Suburbs Area Of Dallas Texas Usa. New Development Multi Storey Flat Unit Group Housing Complex Condos For Modern Living Style. - Texas View
Apartment Building With Cars On Outdoor Parking Garage In Suburbs Area Of Dallas Texas Usa. New Development Multi Storey Flat Unit Group Housing Complex Condos For Modern Living Style. - Texas View

How Does the Realtor Commission for Rentals Work in Texas?

There is no set commission when listing a rental for the property owner or assisting a renter. There are basic guidelines for whether the property is a lease or rental. Usually, listing agents charge 10% of the monthly lease or one month’s rent as a standard.

How Do Realtor Fees Work When Renting Out a Home?

Realtor fees depend on the agent and renter. If the renter seeks more from the rental, the costs will be higher because of the care going into the home and vice versa. Generally speaking, realtor fees involve:

  • Charging half a month’s rent or 10% monthly for leases.
  • A “lease-up” fee plus a credit report.
  • Property management fees.

Realtors may also charge extra based on the benefits they provide within the rental.

What Responsibilities Do Realtors Have?

When the landlord hires a realtor, their responsibilities are heavy, including:

  • Marketing the unit while also advising the landlord on appropriate rents.
  • Discussing work that needs to be done on the rental to ensure no issues.
  • Schedule and attend showings.
  • Gathering applications and deposit checks from interested parties.
  • Checking credit reports, source of income, and references and neatly organizing the details for the landlord relieves much of the stress in this process.

Hiring an agent makes the process much smoother. Many agencies tailor the homes to you, finding the right property for your budget, neighborhood preferences, and more. 

The renter’s realtor agent also can negotiate a lower price with the landlord if there is a flaw in the home, like a crack or leak. While some may be able to negotiate themselves, having a professional realtor deal with the ins and outs of home buying and renting makes renting significantly easier.

What if No Realtors Were Present Between the Tenant and Lessor?

Sometimes no agent is working with either tenant or lessor. If that’s the case, there would be no worry about paying a realtor’s commission and the fees split between tenant and lessor. 

Other Options Besides Realtors

In other cases, a management company would work with the landlord to deal with any expenses. 

  • Renting Properties
  • Dealing with repairs and complaints
  • Collecting rent and finding tenants

The landlord pays 10% of the tenant’s monthly rent to the management company, and the tenant does not have to pay anything to the management company outside of their rent.

Prospective renters can also use rental lists; one may either pay a fee for a listing or see an advertised property. 

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