To list a property for rent in a long term rental lease (12 months only), it is necessary for the homeowner to sign a rental listing agreement with a realtor or real estate agent. This document legally protects both parties and explains in detail the responsibilities and expectations of each. Every company can determine their own method of compensation, but listed below is what services we offer and fees we charge:
The listing agreement is for 6 months in order to allow adequate time for marketing and advertising which is paid for up front by the agent, whether or not a tenant is secured. Most times it takes only a few weeks to 2 or 3 months to find a good “qualified” tenant to occupy the home. If the home is fully furnished, it sometimes takes a bit longer than unfurnished, because most people wanting to rent long term already have their own furnishings and feel more comfortable using them. We can list a home and state either “furnished or unfurnished” and wait for an interested party before making the decision to remove the furnishings. If furnishings must be removed, we can recommend various options to consider.
We advertise in the Multiple Listing Service, on our private web site, www.WhippetPropertiesFlorida.com ,on other popular real estate web sites, such as Realtor.com, Trulia, and Zillo, as well as network with other local realtors. Because we list our rentals in the MLS for other realtors to show, there must be a compensation fee (a finder’s fee) and we recommend $300 to be paid to the company who finds the tenants.
In addition, our company compensation is 8% of the total gross lease, which usually is equivalent to one month’s rent. For example: If your home is rented for $1000 per month, then the total gross lease is $12,000 ($1,000 x 12 months). Then 8% of $12,000 = $960.00, which is our one time compensation. If we are the company who also finds the tenant, we would add the $300 to this. At any rate, the most paid out would be $1260.00. This compensation is not paid until after the tenant takes occupancy and has paid the security deposit, first month’s rent and any other considerations (such as pet deposits), and all funds have cleared. Payment is due within 10 days of occupancy. You pay nothing up front. A renewal lease is only 4% of the gross lease and no finder’s fee.
Once a potential tenant is interested in the home, we work with a company affiliated with the Florida Realtors Association, who will collect a fee from the potential tenants and screen through a formal application, full credit report, criminal background check and nationwide eviction report. We will do income verification and collect any additional documentation needed in order to present enough information to make a sound decision as to whether or not to accept the tenants, as the homeowner makes the final decision. Once accepted, both homeowners and tenants will sign a formal rental lease agreement, prepared and completed by us.
If the home remains furnished, we will do a complete inventory list and have both landlord and tenant sign off on the list. At the end of the lease, we will take the inventory and check to see that all items remain before the tenant vacates and that the home is in good condition.
We are not a property management company and once a rental lease is signed, the tenants become directly responsible to the homeowners. However, we do assist when needed for any emergency situation that may arise, and we have many vendors we can recommend for any needed repairs. We also recommend rental payments to be directly deposited into the homeowner’s checking account so there is no problem with payments being delayed in the mail.
This is a summary of most questions homeowners have when making a decision to rent their home long term. It does save the homeowner money by stability in monthly income, the tenant paying all utilities, and the homeowner no longer responsible to pay bed tax to the county or pay for a business license, as short term rentals require. Please feel free to call us with any further questions or concerns.
Barbara Doeringer, Broker/Owner
Whippet Properties of Florida
Allen Doeringer, Realtor