Best way to handle selling property without using my agent/property manager

Hey guys. I’m contemplating selling one of my rental houses. I have it managed by my property manager who was also my real estate agent for 2 home purchases. We’ve had a pretty good relationship for about 7 years. She is really good, and I’ve never had a headache being a landlord because of her.

A several months ago she told me that one of my tenants was asking if I would consider selling him the house he’s renting from me. He signed a lease with me for the next 2 years.

Well now I am considering selling that house to the tenant without using my real estate agent. Since I already have a potential buyer, I wouldn’t really need an agent. Although my agent was the one that told me about the buyer’s interest. I’m worried that I may damage my relationship with my agent if I don’t use her services.

Should I not be worry about this at all? How should I tell my agent if I did decide to sell without her help? She would still manage one of my properties if I sell this one.

Thanks for any advice.

Take a look at your property management contract with your agent. I wouldn’t be surprised to find a clause that requires you pay a commission if your sell to a tenant they procured.


If the contract does not have such a clause, I would ask myself, “When I was paying her, was she acting as a paid property manager or as a Realtor?”.


My opinion is she was acting as a property manager when she brought this news to you.
Are you about to decrease her pay (mgmnt fees for that unit), because she did a good job?
That doesn’t seem right: Hand her $500+ dollars (when the deal closes) and say thanks.
Treat your people right and they will treat you right.

That’s kinda where I was going with that…the real point was when she’s acting as a paid Property Manager for you, she should be looking out for your interests.


Most real estate agents I have worked with were more than happy to “facilitate” the transaction for ~$500. They usually write up the contract, and work with the title company and lender to make sure everything goes smoothly.

It is well worth the money for the services rendered and it helps maintain the relationship.


I haven’t checked the contract yet, but I will. All good advice though. Thank you!

I’d ask her what she’s thinks is fair.

I wouldn’t have a problem paying her a 3% commission to do both parts of the transaction if she’s as good as you say she is and you want to use her in the future. She would be taking care of all the BS associated with the transaction.


I definitely WOULDN’T ask her what she thinks is fair. Remember she’s your employee
better yet, your authorized agent. You’re the boss…the one who has to bite
the bullet if the deal falls through.

In addition, there is no B.S. associated with the closing if the buyer’s financing is secure.
The title company handles almost all of it. However, $500 to “facilitate” the transaction
is the best deal.

I’ve looked through several PM contracts and all with realtors have a commission clause. Some even have a clause paying commission even if the manager wasn’t a party in the sale.

That said, she brought you the sale and I think she deserves it.

When she brought you the buyer, she was acting as a Realtor. Without her, you wouldn’t have the buyer and thus she deserves to be paid a standard commission. It is probably in your agreement…even if it isn’t, it is still the right thing to do especially if you intend to keep on investing. IF you were planning on doing a 1031 exchange on the property, you could work out a discounted commission since she would be paid on the home you are buying. That way everyone wins. Just my two cents.