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Why don’t you charge the standard 1% fee on the sale of a property

Many property management companies and REALTORS that list a property for rent, require that the property owner also pay 1% or more of the purchase price of the home in the event that the tenant decides to purchase the home from the owner.  I do not think that this is a fair practice, so we charge 0% in our contracts.  We get paid for listing the property as a rental.  While the practice of showing a home to a potential renter and a potential buyer might seem similar, the negotiation process is much more involved when you are intending to market the property as a buy and not a rental.  While we do have a small fee for the earlier termination of our management contract, we do not require you to give us 1% of the entire purchase price just because it later made sense to the owner to sell the property to the tenant AFTER we had been paid for finding that tenant.  Always check this part of the contract with anyone you are considering to use for rental property listings.  It might not seem relevant at the time , but it could cost you a large amount as a property owner.

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