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 with a slightly price structure designed for the different economics of leasing and with the goal of earning your repeat business:
- The first time we charge a flat fee, paid in 2 installments: $500 upfront + $500 at lease signing.
- Subsequent lease listings are just $400 upfront + $300 at lease signing!
- Southern Homes is eligible for a 50% of 1-month 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 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 $1500/month.
If you are interested in marketing your home both for lease and for sale simultaneously, the installments are $650 upfront, then $500 at lease signing (if you accept a lease) or $1000 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.
How Much for 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. If you want agents (including us!) to have an incentive to show your house and make the sale to potential tenants, we suggest offering a tenant-side commission of 50% of one month’s rent in accord with customary practice.
What would be my total cost be?
Assuming you offer a 50% tenant-side commission, your total cost would be the listing fee paid to us + 50% month to the tenant’s broker upon lease signing.
For example, based on a $2000/month lease, your total leasing fees would be $2000 — $1000 to us (in two installments of $500 + $500) and $1000 (50%) to the tenant agent. Then, for subsequent leases at $2000/month, your total leasing fees would be $1700 — $700 to us (in two installments of $400 + $300) and $1000 (50%) to the tenant agent.
Another example based on a $3000/month lease: your total leasing fees on the first listing would be $2500 — $1000 to us (in two installments of $500 + $500) and $1500 (50%) to the tenant agent. Then subsequent leases at $3000/month, your total leasing fees would be $2200 — $700 to us (in two installments of $400 + $300) 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.
How do you add value on a For Lease listing?
- We will handle communications and negotiations with tenant agents
- We will support you with resources and documents prepared by Texas Realtor Association attorneys
- We will prepare a 16-page Lease covering all important aspects of tenant-landlord relations
- 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
- Referrals to service to screen applicants for criminal, eviction, and credit history
- Inventory & Condition Form to facilitate agreement about move-in and move-out conditions
- Pet Agreement (if/when needed)
- Lease Guarantee Agreement (if/when needed)
- Lead-based Paint Disclosure (if/when needed)
- Pool Maintenance Addendum (if/when needed)
- Trust Account to Hold Tenant Deposits pending Move-In
- Advice & Guidance through the Leasing Process