Does a landlord have to pay a commission again to the real estate agent who initially brought him the tenant if the tenant simply renews the lease is the question for Ask Landlord Hank. Remember Hank is not an attorney and is not offering legal advice. If you have a question for him please fill out his form below.
Dear Landlord Hank,
I have rented my property through the real estate agent and paid the one-month commission. The agent did tenant background verification d contract execution.
I would like to know the procedure if the tenant wants to renew the lease. Do I need to pay the agent commission again?
The same agent executes the contract again? Can you give me some info on this? Thanks. -Sun
Please review your agreement with the agent that brought you the tenant.
In Florida, I use the standard MLS agreement for finding a tenant for an owner. The standard agreement from MLS indicates that if the same tenant renews, then the owner would owe an additional commission, to be determined. That is not how we work.
We think one commission is fair for a tenant no matter how long they stay- one year or 10.
I can see the reason for the commission for renewal though IF the agent is managing the property.
I usually ask why tenants are not renewing. Usually it’s because they need more space, or found a better location or want more amenities but sometimes I hear that the tenants complain about the property management.
They sometimes say that when they called for maintenance that the property manager took forever to get anything fixed and the tenants felt like property management didn’t care about them so they are moving for that reason.
Anyway, check the agreement you signed with your agent for the answer.
Each week I answer questions from landlords and property managers across the country in my “Dear Landlord Hank” blog in the digital magazine Rental Housing Journal. https://rentalhousingjournal.com/asklandlordhank/
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