Leasing a home can be easy and there are no fees or commssions

Finding a home to rent can be a struggle.  Especially if out there all alone looking for someplace that is livable.  

But, it doesn’t have to be.  A real estate agent can also help find a home to rent just like the search for a home to purchase.  The nice thing is that there are no fees or commissions for the renter to pay.  All of those fees are paid by the landlord.

The real estate agent can provide a list of houses, flats, apartments or lofts that are currently on the market in the geographic area that the renter requests.  It can be narrowed by the price range and numerous amenities that are needed.

After examining the details of the properties on the list, and perhaps with a drive by, the renter can then determine what properties to walk through.  The agent can then set up the showings.

Making an offer on a home to lease is a little simpler than on a purchase.  But, there is still some of the same paper work.

• Agency disclosure form - This document fully informs the renter that the real estate agent is an agent.
• Designated Tenant Agency Agreement - This document allows the agent to work for the benefit of the renter.
• Offer to lease - This document details the terms that the renter is willing to accept and the amount of the rent being offered.
• Property disclosures such as lead based paint and other building materials used in the construction of the property that may cause health issues.

The offer to lease will set the terms for the lease.  The financial details are the monthly rent, the security deposit, a pet security deposit, a cleaning fee if there is one.  It will also state who is to pay the utilities (usually the renter), the taxes (usually the landlord), waste removal and water bill.  If applicable, it will state who will cut the grass and perform the general maintenance of the property.

Along with the documents mentioned above the following is often required. These documents are very important because landlords will require them before you are even considered, often before you can even see the house.

• Proof of employment - a letter from your employer
• Two month's pay stubs
• Two years of W-2
• Credit score - available for free from Credit Karma and others online
• Two month's of bank statements
• Previous landlord or mortgage company and contact information
• Social security number
• Proof of ID, such as Michigan license, Michigan ID card or passport
• Most likely for many, there is a criminal background check

These documents are then submitted to the landlord or the landlord’s real estate agent for acceptance.

If the application is accepted, a closing is set up at the property.  At the closing three checks are needed:

• One check or money order for half of the first month’s rent made out to the landlord’s real estate agent company
• One check or money order for half of the first month’s rent made out to the renter’s agent’s real estate company
• One check or money order in the amount of the security deposit made out to either the landlord, the landlord’s real estate agency or a property management company.

Also at the closing, the renter will be asked to review the property and make note of anything that is wrong or damaged.  It is suggested that besides making a note of the issues, that either a photo or video also be taken.  For things that are essential to the operation of the property, such as a water heater or stove, a request to repair it can be made.  If it is cosmetic, making a note protects the renter from possible action against the security deposit when the lease is completed.  At that time, if satisfied, the renter can sign the lease, present the checks and take over the property.

While most, if not all, properties will follow the above process, there may be a individual property owners that ask that things be done a little different.  Those situations are handled on a case by case basis.

This process may seem complex, but it really isn't.  A good agent will make sure things run as smoothly as possible. But, remember, there are no fees or commissions to pay.

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Morris Hagerman is a local real estate agent with Real Estate One in Royal Oak, Michigan.  He serves Berkley and the other Woodward 5 communities, including Ferndale, Pleasant Ridge, Royal Oak and Huntington Woods.  Hagerman is also a member of the Berkley Area Chamber of Commerce.  You can contact him by phone at 248-854-8440, email at morrishagermanproperties@gmail.com or visit his web page.