Rentals: The Listing Side
When a rental applicant wants to rent your listing, the other agent will deliver to our office:
1) the rental application,
2) one month rent check, payable to National Realty, refundable if not accepted
3) Credit Check fee (processing fee)- PF) National Realty will run the credit and charges $50 per income qualifying applicant. non-refundable.
That means if only the husband is qualifying, only $50. If both husband and wife, it would be $100. The tenant agent would deliver the checks and application to your office.
When in MLS data input, the commission will be quoted as 25 or 25% and the PF or processing fee will say 50 or $50.
When the other agent delivers the application and two separate checks to your office, then National Realty will run credit and give recommendation to you and your client.
If approved, change status to application registered. When lease is signed, applicant will write another one month check payable this time to the landlord as the deposit. The first month’s rent check received will become the commission and National will disburse to the other company their 25% upon lease signing. Lease signing is the same as settlement. You are done.
Someone wants to see and possibly rent your rental listing. Can you do this? If so, what is the procedure?
Make the appointment to show. When you see them, tell them you are the listing agent and can take care of putting in the application to rent if they desire. If they say they want to rent, then have them fill out the rental application found at nat22 and the disclosure of brokerage relationship, that says you represent the seller. ( do not even bring up the exclusive right to represent tenant form.) When they write up the application and sign the disclosure, you will need two checks. One check, for one month’s rent and the other at $50 per applicant on the lease should be submitted with the credit application. Both will be made payable to National Realty. The credit check fee of $50 each is non refundable. The one month rent is refundable, if the landlord does not approve them.
If this all goes forward, the commission of one month’s rent is to National Realty. It will be paid as follows: 75% list side / 25% tenant side.
Rental Listing Side continued:
- The Credit Check fee charged by National Realty is $50 per applicant. After credit has been run the landlord will be given an honest assessment of the risk with a recommendation of accept or deny. The listing agent or landlord may investigate further, by looking through the application and confirming with appropriate entities.
National Realty Rental listing commission policy
National Realty policy is to charge the landlord or owner, one month’s rent commission. The listing agent receives 75% and the tenant agent receives 25%. This is because the listing agent must prepare the lease with the exact terms the landlord wishes. Leases are not on terms dictated by the tenant, thus the tenant agent does not draw up the lease. Boiler plate leases are found on the National Realty Intranet site www.nat22.com.
The tenant agent must submit the application with the deposit check and separate credit check fee to the listing agent’s office.
- The listing side brokerage does the credit check and it is paid for by the tenant. Checks for the credit check are non refundable to tenant. If turned down the deposit check is returned to the tenant, not the credit check fee. The credit check fee is per person that is qualifying for the application and not refundable.
W-9
The Real Estate company paying National Realty will want our federal tax ID number.
The W-9 with our ID filled in, is found in a link under case processing sheets for rentals on www.nat22.com.
THE PROCESS FOR LISTING A RENTAL:
- Always display absolute confidence that you can do the job!
- You can market it, get a credit check on prospects and make recommendations on who to accept. It must be priced right and be in nice condition. Always have a rental application and sales contract in a file in your car. You never know when you need one quick.
- The step by step process:
- Schedule a time to meet them in the home. Do not try to list over the phone. They can’t sign anything there.
- Write up an Exclusive Right to Lease agreement. (www.Nat22.com)
2) Provide a CMA. From MRIS pull up area comps.
3) Detail of the commission: The full one month commission amount shall be distributed commission 25% to tenant representative company and 75% to listing representative company. One month rent is company policy.
4) After your client signs this agreement, turn it in for Broker Signature and return a ratified listing agreement copy to your client. When turning a copy into the office, also include a case processing sheet that has the overall info on the case. Then go into MLS and do your Data Input. Show your client the listing to see if all is correct and edit accordingly.
- The tenant rep. will bring in to our office an application to rent, along with a check for one month’s rent. This is not cashed unless they are approved. They also bring in a credit check /processing fee of $45 per applicant that will have credit run. ( non -refundable) Both checks made out to National Realty.
- After the processing, we will tell you and you tell your client, whether they are a probable good risk to approve for the rental or not.
- If approved, we deposit into escrow the one month’s rent they provided earlier.
- Upon Lease signing, the renter pays another one month’s rent, but this one to the Landlord. That way the renter now has paid the deposit and the 1st month’s rent. The first check, (made out to National) becomes commission and we pay you your split on 75% of it and the renter’s Brokerage agency is mailed by National Realty, a check for 25% of one month’s rent. Then the tenant representative Broker pays their agent their split.
If you are still unsure of a particular aspect of this process,
Call or email: Keith