LEASE

5smOur Flat Fee listings are not only for sellers– they’re also a great way for investors to put quality tenants in your rental properties!  

MLS exposure attracts high-quality prospective tenants: both those working with realtors as well as high-quality unrepresented tenants doing their own research online.

Our For Lease listings are have the same basic 2-installment design as For Sale listings, but designed for the economics of leasing and with the goal of earning your repeat business:

  • On the first lease listing, we charge a flat fee of $1200, paid in 2 installments: $600 upfront + $600 at lease signing.
  • Subsequent lease listings on the same property are substantially discounted.  Based on our current pricing, the repeat listings are just $800 ($400 upfront + $400 at lease signing) — a 33% discount!  (Future pricing is subject to change, but we intend to continue offering repeat listings at a significant discount.)
  • Southern Homes is eligible for a 50% of 1-month’s rent buyer agent commission, in addition to the listing fee, if we bring you an acceptable lease application. This means that we will show your property and try to make the sale to qualified prospective tenants who are not already represented by another agent.  You would still have the right to lease to tenants you might procure through your own efforts and network without having to pay a buyer’s agent commission.
  • Our MLS listings work best for properties expected to rent for at least $2000/month.

If you are interested in marketing your home both for lease and for sale simultaneously, the installments are $750 upfront, then $600 at lease signing (if you accept a lease) or $1400 at closing (if you decide to accept a sales contract).

For a lease transaction, we’ll assist you with contracts, lease applications and tenant screening, disclosures, and preparation and negotiation of the lease contract.   Careful selection of tenants and a well-written lease (including a provision for automatic, direct-deposit rent payments) will help to reduce your management issues to a minimum.

How Much Should I Offer to the Tenant’s Agent?

The usual commission on the Houston MLS offered to agents who procure a tenant is 50% of one month’s rent. While you can offer less, we believe you’ll get the best tenants applying soonest when you offer 50% as an incentive to other agents to show your house in accord with customary practice.

What would be my total cost be?

Assuming you offer the tenant’s broker a commission of 50% of a month’s rent, your total cost would be the $1200 listing fee paid to us + the 50% commission for the tenant’s broker.

For example, based on a $2400/month lease, your total leasing fees for the first lease would be $2400 — $1200 to us (in two installments of $600 + $600) and $1200 (50%) to the tenant’s broker. Then, for subsequent leases at $2400/month, your total leasing fees would be $2000 — $800* to us (in two installments of $400 + $400) and $1200 (50%) to the tenant agent.

Another example based on a $3000/month lease: your total leasing fees on the first lease would be $2700 — $1200 to us (in two installments of $600 + $600) and $1500 (50%) to the tenant agent. Then subsequent leases at $3000/month, your total leasing fees would be $2300 — $800* to us (in two installments of $400 + $400) and $1500 (50%) to the tenant agent.

If you procure the tenant through your own efforts and networking, your only cost would be the listing fee paid to us.

* Future pricing is subject to change, but we intend to continue offering repeat lease listings at a significant discount.

What’s included?

  • MLS listing, syndicated out to Zillow, Redfin, Estately, etc.
  • Professional Colonial-Style Sign
  • Secure Supra keybox
  • Centralized Showing appointment service
  • Advice regarding screening applicants for criminal, eviction, and credit history
  • Communications and negotiations with tenant agents
  • Resources and contracts prepared by Texas Realtor Association attorneys
  • Preparation of 16-page Lease covering all important aspects of tenant-landlord relationship
  • Application forms asking legal screening questions
  • Employer release forms authorizing you to verify employment
  • Screening criteria disclosure form to protect you from screening-related liability
  • Inventory & Condition Form to reduce potential conflict over move-in and move-out conditions and security deposit withholding
  • Pet Agreement (if/when needed)
  • Lease Guarantee Agreement (if/when needed)
  • Lead-based Paint Disclosure (if/when needed)
  • Pool Maintenance Addendum (if/when needed)
  • Advice & Guidance through the Leasing Process
  • Advice about compliance with Texas Property Code security device laws for rental properties

Ready to get started?

  1. Pay the $600 up-front listing fee. Upon receipt, we will send you rental comps, showing what you can expect for the monthly rent. Unlike for sale listings, lease listings are typically listed very close to the expected lease rate, without a lot of negotiating room built in to the asking price.
  2. Contact Us for a copy of the lease listing packet. Complete the packet and send back to david @ southernhomes.us.
  3. Take your own photos or contact us for a referral to a professional photographer.  We suggest professional photos for the first listing and then we can reuse them for subsequent listings at no additional cost!
  4. Within 1 business day of receipt of your paperwork, photos, and $600 fee, we will come out with the sign and supra keybox and your listing will go live!

Need more?

If you really don’t want to be involved in screening your tenants or communicating with them, we also offer full property management services. Please contact us for details.