How Much is a Toronto Realtor’s Leasing Commission?

In Toronto, landlords typically pay a commission equal to one month’s rent, which is split between the listing agent and the tenant’s agent.

How the Commission Works

When you hire a realtor to list and lease your property, the standard fee is one month’s rent. For example, if your condo rents for $2,800 per month, the landlord pays $2,800 in commission. That fee is usually divided between:

• The listing agent (your representative): Markets the property, screens tenants, and drafts the lease.
• The tenant’s agent: Brings qualified applicants and represents their client in negotiations.

The landlord pays this commission after a lease is successfully signed. Tenants in Ontario do not pay realtor fees.

Why It’s an Investment, Not Just a Cost

While some landlords hesitate at the upfront commission, hiring a professional realtor can actually save money and reduce risk:

• Faster leasing: MLS exposure, professional marketing, and staging reduce vacancy periods (which can cost more than the commission).
• Quality tenants: Realtors conduct credit checks, income verification, and landlord references, thereby reducing the risk of rent arrears or property damage.
• Legal compliance: Lease agreements are prepared in accordance with the Residential Tenancies Act (RTA), thereby avoiding costly mistakes and disputes.
• Time savings: Your agent manages inquiries, showings, negotiations, and paperwork, freeing you from the stress of handling everything yourself.

Variations and Considerations

• In rare cases, landlords and agents may negotiate a different fee structure; however, one month’s rent is the standard in the Toronto industry.
• The commission applies whether the unit is leased for one year or longer. If tenants renew, landlords do not pay an additional fee for the extension.
• Additional costs (e.g., staging, cleaning, or professional photography) may be recommended to maximize rental value; however, these are separate from the commission.

At Fox Marin Real Estate we represent Toronto landlords with a proven process: premium marketing, detailed tenant screening, and legally compliant leases.

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