Apartment Brokers and Agents
What does a broker do?
Brokers play an important role in the Cambridge rental market for one reason: most landlords prefer to rely on brokers to find their tenants.
Why? It's expensive and time consuming to find tenants. Brokers are middlemen between renters and landlords. They help renters find and choose from available apartments and they help landlords fill their vacancies.
Why? It's expensive and time consuming to find tenants. Brokers are middlemen between renters and landlords. They help renters find and choose from available apartments and they help landlords fill their vacancies.
Broker vs Agent
Brokers are licensed by the states they work in to help renters or buyers in the real estate market. Agents (aka salespeople) are also licensed, but because their license has limitations, the state requires they work for a broker.
How agents are paid
Agents are paid on commission - they only get paid when a renter rents an apartment through them. Most often, renters pay the fee. Sometimes, however, the landlord pays the fee.
How much money do agents make?
Fees are split between the agent, the brokerage firm, and anyone else involved in the transaction. Usually an agent gets 50 percent of the fee. There's a common misconception that rental agents are making money hand-over-fist. In reality they make about $50,000 per year on average and usually don't get health insurance, paid time off, or some of the other benefits most of us have come to expect. Some are very successful but it's certainly not a get-rich-quick scheme for most.