How are rental agents paid?

I just received this:

I am a student interested in the field of real estate. I understand that a real estate agent makes money on the sale of a property based upon a percentage of the final sale price. I was wondering how a real estate agent makes money on a lease of a rental property?

Thanks for the help, Jim

A landlord lists his property with a real estate agent for a number of reasons. The landlord benefits from the agent's experience and connections, but also because the agent has access to the MLS (or Multiple Listing Service) and other venues for promoting the rental property. There are many ways that a rental listing can be charged, but most usually the landlord agrees to pay a portion of the first month's rent to the listing agent.  The more the rent, the higher the commission paid.  Landlords are generally happy to pay this because a listing agent saves them time and money (as compared to ads in the paper plus dealing with calls from unqualified renters). If the renter has his own agent, the listing agent will pay a predetermined portion of the commission to the selling agent (as the renter's agent is called).  Please let me know if this helps.

Benefits of Renting

While there are some obvious benefits to buying over renting in {Location_Name}, there are also many benefits to be gained from renting a property as opposed to purchasing a property. Some of the benefits of renting include the ability to save money while renting for the purpose of purchasing a home. In addition, the inclusion of amenities which the renter would not likely be able to afford if they were to purchase a home instead of renting is also a benefit. Renters are also free from most maintenance concerns. This is especially true in a condominium. The renter may be responsible for small items such as changing light bulbs but more extensive repairs are typically covered by the landlord. If you're looking for a rental unit, contact us to learn more about how a Rental Agent in {Location_Name} may help you to find the best deal possible. For more information or to set up an appointment call Stuart at (703)765-0300.