What Is An Exclusive Listing?
I love your question! This specific topic on the cost of a rental agent comes up quite often, so you are not alone!
Are you ready for some good news? It costs you absolutely nothing to use a rental agent to help you find your dream rental property in Toronto. Your future Landlord covers all commissions owing. So, as a tenant, there are no service fees. How awesome is that?
As a prospective tenant, you will have the benefit of using a full-service realtor to guide you through the process to include:
If you do not have a budget that aligns with current market rents, it may be very challenging for a rental agent to service your needs. Rental agents can only book viewings at properties that are listed on the MLS System (Realtor.ca), which generally coincide with competitive rents. If this is the case for you, and you don’t have the budget, there’s other options. We recommend that you search for less expensive options listed on Craigslist, Kijiji or Pad Mapper. Alternatively, it may be worth exploring purpose-built rentals as a possible option if you have budget constraints.
A rental agent may not be willing to take you on as a client if you’re not able to provide a strong covenant as a tenant. This means, you will be required to produce a quality credit score, letter of employment, reliable references and a rental application with your offer. If you’re currently in a position that could make this paperwork challenging, it may be hard for a rental agent to agree to take you on as a client. Both you and your agent will end up spinning your wheels if you can’t provide a robust rental package!
The Toronto rental market is very competitive. To find a top-notch rental in a reasonable period, it requires a lot of work and commitment. And, this is on the agent’s side! If you are not communicating, you are showing up late to viewings, cancelling at the last minute or disrespecting the process…it is just not worth the agent’s time and energy. If you would like to read more about finding a rental in Toronto, click here.
The total cost to the landlord for rental services is one month’s full rent + HST. Typically, the breakdown is 50% of the fee goes to the listing agent and 50% of the cost goes to the agent representing the tenant. This commission is deducted from the initial deposit that the tenant provides with their offer to lease (first and last month’s rent via certified cheque) — a balance cheque will be delivered to you after occupancy.
This sounds like a great option!
Lastly, it’s strongly recommended to have your space professionally photographed if you do not already have high-quality images. This is the most critical thing you can do to ensure the success of the listing; and, properties with pro-photos have proven to not only lease faster than those without, but for more money. These photos will become an asset to you down the road. If you ever need to release or relist your property for sale, photos will help, especially when it’s tenanted. Generally, the cost for photography is $250 – $300 and is the responsibility of the Landlord to pay.
Ensure that the property is in top-notch condition and ready to go for viewings. It’s recommended to be professionally cleaned. You may also need to send in cleaners again after your current tenants (if existing) depart. We have seen some filthy places! The cost of services will largely depend on how large your home or condo is.
Sometimes a coat of white paint goes a very long way. If it’s time for a little pick-me-up before leasing out your property, a rental agent should be able to put you in contact with an excellent painting service that can look after your requirements swiftly and at a competitive price.
If you would like to learn more about what you need to know about being a landlord, click here.
The leasing process isn’t as simple as many people assume. When you get into a difficult situation, it can really pay to have a professional on your side. Fox Marin can help. Our Leasing Division manages up to 100 rentals annually. We’re well-equipped to manage your rental needs, whether you’re a landlord looking to rent out your home or a tenant looking to acquire a new space!
This article is written by Kori Marin, Managing Partner and Broker at Fox Marin Associates. With a passion for Scandinavian design and all-things-Toronto, Kori brings her own brand of charismatic energy, creative integrity, and expertise to her work.