Each real estate agency is free to set its own rates for services. Prices may vary depending on the property, the type of lease, and the location. Sometimes this discourages tenants or landlords, which prevents them from seeking the services of a real estate professional.
However, while certain costs—such as the cost of advertising—are the landlord’s responsibility, the others may be shared between the two parties.
In most cases, the tenant’s share is less than or equal to the landlord’s. Both parties have the right to know their obligations under the law. Find out what goes into agency fees and how to split them.
Items Included in Brokerage Fees
In the context of a rental, the agency’s fees cover all services provided to finalize the lease:
- Drafting and publishing the ad;
- Property viewings, which include the real estate agent’s travel expenses;
- Drafting the lease agreement;
- Fees related to the tenant’s file;
- Conducting the pre-move-in inspection before the tenant moves into the property.
Real estate professionals are required to disclose these fees, including all taxes, and to specify who is responsible for paying them. In addition, they must comply with the legal cap on the portion to be paid by the tenant.
Agencies with offices in multiple regions must publish their fees by location. This is the case for L’Agencerie, which lists different fee schedules for its four offices.
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Advertising costs are charged to the owner, depending on the channels the agency uses. This is especially true when the agency uses specialized newspapers in addition to its own website.
As for other services, the landlord must always pay more than the tenant.
Sharing Brokerage Fees
Fees related to property viewings, the rental application, and the preparation of the lease agreement may be charged to both parties. The parties may each pay the same amount, depending on what they agree upon. However, the tenant may not pay more than the landlord.
A cap is set on the amount charged to the tenant, depending on the area where the dwelling is located. This is a price persquare meter, based on the living area:
- In a high-demand area, the maximum amount is 12 euros (including tax) persquare meter. This applies to the cities and municipalities included in Zone A bis;
- In a high-demand area, the price is a maximum of 10 euros persquare meter, including tax. These are the localities subject to the annual tax on vacant housing;
- In other areas, the tenant pays a maximum of 8 euros (including tax) persquare meter.
Regarding the move-out inspection, the tenant and the landlord split the costs. They may each pay an equal share. If they cannot agree, the landlord pays more. The maximum amount that can be charged to the tenant is 3 euros (including tax) persquare meter of living space.
The calculation isn’t complicated if the costs are split equally between the tenant and the landlord. Otherwise, the agency must calculate the costs based on the living area.
In addition, you can use a calculator to determine how much the tenant needs to set aside. Simply enter the living area, the location, and the total amount of the brokerage fees.
The simulation results show which zone the city belongs to and the maximum amount that can be charged to the tenant. Regardless of the total cost of the real estate professional’s services, the landlord must pay the remaining amount.
How can you break down the fees listed by an agency?
In general, agencies are transparent about their fees. They provide details, including the percentage of the fee relative to the rent. Professionals, such as L’Agencerie, specify on their websites that their fee structure complies with the cap on the amount charged to tenants.
So, before viewing the apartment, the tenant already has an idea of how much the utilities will cost. As for the landlord, they pay half of the costs or the amount by which the tenant’s bill exceeds the maximum amount.
In addition, rental listings specify the living area, which allows you to calculate the share allocated to each party. Of course, you’ll need to take into account the area where the property is located.
L’Agencerie –
