Topic: Referral bonus to realtor or ApartmentList?

Managers….. Realtor Question…..?

ApartmentList referred someone….. emailed us over their conversation from the 23rd of the month to the 28th of the month. A realtor then came into the picture on the 29th of the month and the client leased a day later on the 30th.

The realtor is requesting payment because he feels he is the “Procuring Cause” the client leased at the community and has called the office multiple times until he hears what he wants after yelling and yelling.

I believe what’s fair is fair, business is business but ApartmentList referred first. Wouldn’t we give it to them?

How does “procuring cause” work?

The referral bonus should definitely go to ApartmentList. The real estate agent can take that up with the client.

If a realtor is yelling at you - do not pay him. The bad behavior shouldn’t be rewarded.
Also, if you have a deal worked out with the realtor then this may be covered in the contract - otherwise the prospect needs to pay them, not you.

First referral source in your system

No- I had this happen and I got involved (I am a RM) and I let him know I was not paying him as he was not the source of the person finding the property. He was a real jerk but I am also a licensed Broker and I just gave it right back to him. I didn’t pay and we never heard from him again.

Sounds to me the tenant found the unit they wanted and possibly told a realtor friend who is trying to obtain a "finders fee". If there is nothing in writing in your ads and you weren't listed on the mls you definitely don't have to pay anything...that's without considering first point of contact was apartmentlist.

Unfortunately they may have looked at Apartment List first and you have a contract with them if they are first source. But the realtor actually escorted them and brought them in. So they secured the lease. Kinda like commissions who ever tours get the lease. The only thing is you have a contract with apartment list at a set rate.
I would pay them both out.
You may need that realtor down the road and word gets around if you use locators.

They don’t owe realtors anything if their is not a signed agreement in advance

Locators and realtors you don’t have a contract with. But I’m sure locators fees are advertised and it’s called good ethics.

Even if it was advertised the realtor would not be procuring in this case. I worked in real estate management for many years. Yes it is frustrating when a customer doesn’t follow protocol for realtor referrals. However I can say pretty confidently that if tables were turned the realtor would not agree to pay two referral fees for a buyer/seller referral. So sometimes it isn’t about good ethics. Too many pieces to this scenario that are unknown to give it a confident answer IMO.

I agree if the fees are not crazy pay them both, it is worth it if they keep referring

Agreed! However….. the realtor didn’t escort. Nothing in writing referring the client until it was too late

Apartment list gets the locator fee.

We don't pay locator fees. This is why.

What did the resident say who refer them and put down on their application?

Did they also put that down on their application and did the locator send a guest card or escort?
Normally a property working with locators would have a commission set for them 50% 0r 100% etc for a Locator Escort or send. If the locator followed your criteria and sent a guest card through email and they lease the next day and the resident put it on their application then its the locator that gets the referral also goes for a locator who escorts in person.

At the end of the day its not what a marketing tool says its what the resident says. Worst case scenerio split both commissions to each so everyone is happy and you dont create a bad relationship. Hope that helps! I have experienced on both ends from a locator and PM stand point.

What was the first point of contact? Was the first lead directly through Apartment List? I feel that if it was the credit goes to Apartment List. What I would do is offer to pay the Realtor half of the referral fee and explain that you want to work with them and you value their referrals. I would let the Realtor know that the prospect needs to go through them in the future to get the whole referral fee.

If the prospects info was already in the system when the realtor brought them in, then I would think at that moment it would have been the responsibility of the onsite staff to notify the realtor that the prospect was already in the system from another source. The realtor has know way of knowing about the other source and therefore did their job. They got them in the door and helped secured the lease, in my opinion they should be paid for their time.

I've never had a contract with a realtor company. I've always made it clear with realtors that we do not offer a commission to them and 99% of the time they understand. I would pay out apartmentlist per the contract you have with the advertising source.

Always pay first referral source and in this case pay Apartment List. What if the situation was flipped (which happens) then I would pay the realtor & not Apartment List. Again, always pay first referral source. Hope this helps and good luck!

I have this happening a lot and I sent an email to all my locators that they need to talk about that with their clients and if I get hit with aptlist first then I’m only paying them. It’s their due diligence to ensure they are the first source, I am also a realtor and agents will take people who have been searching on aptlist which is how they first were sold on our community. Not the locator. We also pay $652 to apt list and a $1000 locators. We can’t do both! Set the expectation with locators

Whatever prospects put on their application, should be who gets paid.

Per the contract with ApartmentList you have to pay them. Doesn’t matter what the realtor says if apartment list can prove they send the person, then you are obligated to pay them

The procurement came from apartmentlist first. They get the referral. If a Realtor calls yelling at you, they need to refer back to our code of ethics.

He didn't do anything. Tell him you don't work with realtors or "locators" and if you didn't have a prior agreement stating so, like you probably do with apartment list, then he needs to kick rocks.

I wouldn’t pay it, the realtor can take it up with the applicant. You have the documentation.

I would use whatever the applicant listed as their referral source.

I'm a licensed real estate agent in Texas. I have had the Apartment List issue arise numerous times. When people start searching for an apartment they obviously start their search on the internet. They may visit numerous apartment websites and after becoming frustrated with the misinformation online they contact a locator for assistance. The locator spends time qualifying the client to make sure they meet apartment's rental criteria. We gather accurate information that is time sensitive on pricing, availability and specials. We also find out floor level, view, extra fees over rent, etc. Locators may also offer resources to school ratings, crime statistics, and any other pertinent info that could help our client make a decision on where to apply. We also book tours or escort the client on tours. If the locator provided these services and their client leases they would have VALID claim they are the procuring cause of their client leasing at your community. Even if it is discovered they visited "Apartment List" prior to working with the locator. If the client was "sold" on your community just by viewing your listing on the Apartment List website then they would have applied and never contacted a locator.

On our guest card the client states how they heard about us.