How does a realtor work?

[canuck78]

To answer questions in the thread
1. Yes, Hiring a realtor is free for tenants.
2. The landlord pays the agent but for leases /rental, it is not much and the agent is expecting long term relation with you so that when you buy a house, you hire him too and that's when he makes money.
3. Look for local listings in the area you want to settle. Check the brokerage the agent is with. In Canada, Re/max is the biggest and best brokerage. If you know anybody in Canada, ask for references.

Some rentals will not pay a real estate agent a commission and many real estate agents will only show properties where they will get a commission. If properties are being shown by the owner or it is an apartment corporation a commission they may not agree to be pay. Wouldn’t completely depend on a realtor unless you are looking for a higher cost property (home or condo usually). Do your own looking as well. If you sign a contract with an agent make sure there is a clause describing what happens if you find your own rental. You need to make sure you won’t need to pay the agent if that happens.

 

[canuck78]

To answer questions in the thread
1. Yes, Hiring a realtor is free for tenants.
2. The landlord pays the agent but for leases /rental, it is not much and the agent is expecting long term relation with you so that when you buy a house, you hire him too and that's when he makes money.
3. Look for local listings in the area you want to settle. Check the brokerage the agent is with. In Canada, Re/max is the biggest and best brokerage. If you know anybody in Canada, ask for references.

Not many realtors are going to take you on a tours of apartment towers that won’t give them commission. Many companies that own apartment towers have their own rental department and won’t work with realtors. All depends on the budget and what people are looking for.

 

[anujoshi]

1. Is hiring a realtor free for tenants?

2. If the landlord is paying realtor, is he/she going to rent at a higher price than normal?

3. Where can I contact a reliable realtor? Is there a popular website?

Thanks and cheers,

Karthik

1. Realtor fee is paid by the tenant in any transaction that takes place on a Realtor.ca or MLS listing.

2. Not necessarily. But a landlord that is hiring a Realtor (and paying them) and asking the Tenant's Realtor to bring a qualified Tenant (and is agreeing to pay them too) obviously sees value in having a Realtor. They are professional (mostly, haha) and the transaction is secure. If the Landlord wants to use a Realtor, they hire them on principle, not on saving few fees. It doesn't affect the rent price or make it more expensive.

3. Check online, read reviews, go through websites and social media. Realtor.ca has listing of all licensed Realtors in Ontario.

Good luck!

 

[anujoshi]

I am moving to Toronto from Vancouver and also got surprise that most of the properties specially in Mississauga and Oakville listed by agents I will say up to 80% listed by agents. Even on Facebook Marketplace and Kjjiji most ads are by agents for rental properties. As mentioned by Canuck78 yes these are slightly high priced. Agents will get 1 full rent, if both sides (tenant and owner) have agents half month will go to listing (Landlord agent) and half will to to Tenant's agent as per law.

There is no law about commission. I have clients that rent out their property on an on-going basis and I charge a flat fee. There is no law about Realtor commissions or fees in Ontario.

 

[canuck78]

1. Realtor fee is paid by the tenant in any transaction that takes place on a Realtor.ca or MLS listing.

2. Not necessarily. But a landlord that is hiring a Realtor (and paying them) and asking the Tenant's Realtor to bring a qualified Tenant (and is agreeing to pay them too) obviously sees value in having a Realtor. They are professional (mostly, haha) and the transaction is secure. If the Landlord wants to use a Realtor, they hire them on principle, not on saving few fees. It doesn't affect the rent price or make it more expensive.

3. Check online, read reviews, go through websites and social media. Realtor.ca has listing of all licensed Realtors in Ontario.

Good luck!

Landlords pay the fee not tenants. Typically month’s rent to the realtor.

 

[21Goose]

Yeah, I've used a realtor twice in Toronto, and I never paid any fee/commission. Once for a condo in downtown Toronto, the second for a house in west Toronto. I believe my realtor and the landlord's realtor split the commission.