Rental Transaction Fees

Beginning Nov 1, 2022, C21 Redwood will have a $75 additional commission on rentals, including listing and tenant representation. This guide provides agents the best practices on how to collect this fee for each side.

Rental Transaction Fee

Effective November 1, 2022:  In addition to the Franchise Fee, C21 Redwood (Broker) will charge clients a $75 transaction fee on all rental transactions where Broker is representing a Landlord or Tenant.  The $75 is a fee, not an additional commission and the Broker retains the full amount.  The fee is non-refundable.

If the client is prohibited from paying such a fee by a program partner or by law, the fee will be paid by the Salesperson via deduction from the commission and the following language should be added to the “Additional Terms” section of the applicable agreement:  “In the event, a client is prohibited from paying the broker’s rental transaction fee of $75 by a program partner or by law, the Salesperson will pay the fee on behalf of their client at the time commitment is paid.”

FAQs and Best Practices on the Rental Additional Commission

The Rental Transaction Fee can be submitted via check, ACH or Earnestly.  Checks should be made payable to Century 21 Redwood Realty and must include the Property Address if you are working with the Landlord or the Tenant’s Name(s) if you are working with the Tenant(s).l.

• Agents can collect this fee using the following: 
  • Earnestly (has an $15 processing fee) HERE is the link to learn more about Earnestly. 
  • ACH HERE is the link to learn more about ACH transfers
  • Checks can be made out to Century 21 Redwood Realty. Please make sure that the name of the tenant is listed.

Best practices for Tenant Representation

It is best to collect the $75 fee upfront at the time the Tenant Representation Agreement is signed.  (Be sure to submit the Agreement to your office paperwork so that it can be matched to the fee received via check, ACH or Earnestly).

If the client is paying the fee (which is encouraged), it must be agreed to in the Tenant Representation Agreement appropriate to the transaction’s jurisdiction.

NVAR’s Exclusive Right to Represent Tenant (Form #1282)- (WV to use NVAR) 

• Option 1:  Utilize Para 8A RETAINER FEE.  Indicate the amount of $75 and check the box saying that the retainer fee WILL NOT be subtracted from any compensation due.
• Option 2:  Utilize the ADDITIONAL FEES section to Para 8B PAYMENT.  Fill in the portion of the paragraph that says “In addition to the Broker’s Fee, an additional fee of $_______ will be collected from the Tenant payable to the Broker at the time the Tenant takes possession of the property.” with the $75.  The downside of using this option is that the payment will not be made until possession and may be more difficult to collect than getting it up front.
• Option 3: Utilize the OTHER PROVISIONS section in Para 17 with this language:  “Tenant is responsible for the payment of a $75 fee to Century 21 Redwood (Broker) upon signing this agreement.”

GCAAR’S Exclusive Right to Represent/Dual Agency Tenant Agreement (Form#1219)

• Option 1:  Utilize Para 4 RETAINER FEE.  Indicate the amount of $75 and check the box saying that the retainer fee SHALL NOT be subtracted from any compensation due.
• Option 2:  Utilize the ADDITIONAL FEES statement in the Broker’s Fee paragraph of Para 8 BROKER’S COMPENSATION.  Fill in the portion of the paragraph that says “In addition to the Broker’s Fee, an additional fee of $_______ will be collected from the Tenant payable to the Broker at the time the Tenant takes possession of the property.” with the $75.  The downside of using this option is that the payment will not be made until possession and may be more difficult to collect than getting it up front.
• Option 3: Utilize the ADDITIONAL PROVISIONS section in Para 13 with this language:  “Tenant is responsible for the payment of a $75 fee to Century 21 Redwood (Broker) upon signing this agreement.”

Maryland Realtors’ Exclusive Buyer/Tenant Residential Brokerage Agreement

• Option 1:  Reflect the rental transaction fee in Para 8 BROKER’S COMPENSATION with language like:  “X% of one month’s rent + a $75 transaction fee to C21 Redwood Realty.”  The downside of this option is that payment will not be made until possession and may be more difficult to collect than getting it up front.
• Option 2:  Utilize the “Other Addenda/Special Conditions” para 14 with language like, “Tenant is responsible for the payment of a $75 fee to Century 21 Redwood (Broker) upon signing this agreement.”

Pennsylvania Association of Realtors Buyer Tenant Agency Contract   

• Option 1:  Line 36 – Broker’s Fee in the event of a lease transaction is: (put) $75.00 (and whatever amount you normally would charge).
• Option 2: Line 41 –  Other – put,  “Tenant is responsible for the payment of a $75 fee to Century 21 Redwood (Broker) upon signing this agreement.” In addition to this, you can then also just put what you would normally charge in line 36.

Best practices for Listing Leasing Representation

It is best to collect the $75 fee upfront at the time the Listing  Agreement is signed.  (Be sure to submit the Agreement to your office paperwork so that it can be matched to the fee received via check, ACH or Earnestly).

If the client is paying the fee (which is encouraged), it must be agreed to in the Listing n Agreement appropriate to the transaction’s jurisdiction.

NVAR’s Exclusive Right to Lease Listing Agreement Form #K1281- (WV to use) 

• Option 1:  Utilize the Para BROKER COMPENSATION  section in Para 12 Fill in the portion of the paragraph that says “The Leasing Fee shall be X% Plus $75 fee to Century 21 Redwood (Broker) upon signing this agreement.”
• Option 2: Utilize the ADDITIONAL TERMS section in Para 22 with this language:  “Tenant is responsible for the payment of a $75 fee to Century 21 Redwood (Broker) upon signing this agreement.”

GCAAR’S DC/MD Non-Management Exclusive Right to  Lease Rental Agreement (Form#1220 and #1206)

• Option 1:  Utilize the LEASING FEE  Para 3.  Fill in the portion of the paragraph that says “The Leasing Fee shall be X% Plus $75 fee to Century 21 Redwood (Broker) upon signing this agreement.”
• Option 3: Utilize the ADDITIONAL PROVISIONS section in Para 20 with this language:  “Landlord is responsible for the payment of a $75 fee to Century 21 Redwood (Broker) upon signing this agreement.”

Maryland Realtors’ Exclusive Right to Lease Agreement

• Option 1:  Reflect the rental transaction fee in Para 14 BROKER’S COMPENSATION with language like:  “X% of one month’s rent + a $75 transaction fee to C21 Redwood Realty upon signing”