Given the difficulty in arranging financing, many of my sellers are asking if they can rent out their homes on a month-to-month lease until the property actually sells.

Of course, I understand all the problems associated with renting a home and trying to sell it at the same time. My question is, if I go though all the work of advertising (not on the MLS, though) filtering phone calls, qualifying tenants, preparing rental contracts, collecting deposits, and transferring keys, am I also obligated to pay my managing broker a percentage of any commissions earned (customarily 1/2 month's rent)?

Rentals do not require title and escrow, or a formal closing process. Additionally, the property management is strictly between the owner and the tenant, without a third party involvement.

Thanks in advance for the input fellow agents online.

of course they do... why wouldn't they? they are still responsible in the end.

But aren't you proposing to be a Third Party ?

Is your Seller going to be "contractually" obliged to pay you for your effort in securing a Tenant? (or is that something under the table?) Are you operating under your Broker's good name and reputation while doing this? If you get in trouble legally, will you be relying on the protection afforded by your Broker's E&O ?

If you are putting your Broker at risk in the performance of any of these activities , then I'd say he'll deserve a percentage. How does your Independent Contractor Agreement address the subject ? If it's not referenced, then ask your Broker and clear the air.

also... if you watch Judge Judy, nearly 1/3 of all the cases on that show involve rental disputes.. so rentals are not an easy slam-dunk thing as some believe. just a heads up if you've never done rentals before. many are easy.. but some can get nasty and time consuming.

Sometimes Owners have an unreasonable expectation that "we" can do criminal back ground evaluations and credit worthiness checks . . . . and never, ever hitch them up with deadbeats who might pick their pockets clean. When we do, they tend to get very cranky.

It's hard to believe, I know; but some people have actually lied to me . . . . some even giving me false indentity and bogus references. And I was such a trusting soul . . . . an innocent when I came to this Planet.

I don't get involved with rentals . . . . and I don't arrange blind dates either.

Obviously with sales, the managing broker takes a percentage off the top after the commission is disbursed. If my broker is entitled to commissions from rentals, and the owner writes me a check directly, do I need to sign over the check to the managing broker or ask for the check to be rewitten in the managing broker's name?

ALL real estate activity is performed under the guidance of YOUR BROKER.

Before having ever answered a sellers question such as this you should:

1.Talk to your broker immediately and explain the situations and ask for guidance in writing.

2.The broker may not even want you doing these activities.

3.This arrangement you are trying to facilitate might not be covered by E and O.Insurance carriers asses much higher premiums for a brokerage to perform property management of any kink.The reason is statistics show property management is one of the most highly sue happy categories where the most claims are paid out.

4.If you IC agreement doesn't spell it out you get clarity.

5.You are not supposed to be paid funds directly unless authorized by your head broker.

I authorize my agents can get paid at closing with my fees already taken out and then our closing attorneys issue them a 1099 for the transaction.HUD won't do this on their closings but regular ones usually will.

It's scary you mention have the seller make a check out to me.Who is on the listing contract??? Doesn't it mention the broker as the sellers client and you working under the broker??

You need to discuss this with your broker.