When you start planning your move to Edmonton, one of the first decisions you'll need to make is how to look for housing. Should you use the services of a professional realtor, or is it better to rely on yourself and search for accommodation independently through websites and classified ads? This question is highly controversial, especially among people who are new to the rental process in Canada. Some people say that realtors are a blessing, helping you quickly navigate the complex rental system and find the perfect place. Others argue that realtors are an unnecessary expense, since you can easily find a place on your own online. As is often the case, the reality lies somewhere in the middle. In this article, we will take a detailed look at what realtors are in the context of renting in Edmonton, the advantages and disadvantages of using them, and how to determine if they are a good choice for you.
What a realtor actually does when renting a home
First of all, it is important to understand that realtors in Canada, including those working in Edmonton, have a very specific role, especially when it comes to buying and selling real estate. However, when it comes to renting, the situation is slightly different.
A realtor who helps you find a place to rent acts as a kind of intermediary between you and the landlord or property management company. Their main job is to help you navigate the rental market, show you available properties, discuss your needs and preferences, and then offer you options that meet your criteria.
When you meet with a realtor, they start by understanding what you need. How many bedrooms and bathrooms? What is your upper budget limit? Where in Edmonton do you want to live? Do you need any specific amenities, such as parking, a swimming pool, or a fitness center? What modes of transportation do you prefer? The realtor asks these questions to gain a complete understanding of your needs.
The realtor then uses their access to a property database called the Multiple Listing Service (MLS) to search for properties that meet your criteria. The MLS is a professional database that often contains more information and options than those available to the public through public websites. Realtors have special access to this system, which often means they can see properties before they appear on public websites or know about properties that are not advertised publicly at all.
Once a realtor has compiled a list of potential properties, they will arrange viewings for you. A realtor can also provide valuable advice on the rental process, including what to say to the landlord, how to fill out a rental application, what to ask the landlord, and which lease terms are fair and which are not.
In addition, some realtors can help you negotiate the terms of the lease. If you find a place you like but there is something you don't like about the contract (for example, the deposit seems too high, or you would like to negotiate the monthly cost), the realtor can help you discuss this with the landlord.
How realtors get paid when renting
One of the most confusing aspects of the realtor system in Canada is the question of who pays the realtor and how much. This seems daunting to many people because they don't want to be responsible for paying commission.
When it comes to renting in Edmonton, the realtor commission system is not the same as when buying or selling a property. When buying or selling, the seller usually pays the commission to the realtors on both sides. However, when renting, the money often comes from the landlord or property management, not from you.
Most of the time, when a landlord lists a property on the rental market, they also list it on the MLS with a commission tag for the realtor. This commission is usually between 3% and 5% of the annual rental value. For example, if a property rents for $1,200 per month ($14,400 per year), the realtor's commission could be between $432 and $720. The landlord agrees to pay this amount because they know that the realtor will help them find a responsible tenant more quickly.
However, there is an important caveat. Not all properties in Edmonton are listed through MLS with a commission offer for the realtor. Some landlords choose to list their properties only on private websites such as Kijiji or Rentfaster, without offering a commission. In these cases, if you work with a realtor, you may need to pay them directly, or the realtor may simply not have access to these properties.
More importantly, you usually don't have to pay the realtor anything directly for helping you find a place to rent if the property is listed with a commission offer. However, some realtors may charge a fee for consulting or other services if they are involved in something more complex, such as negotiating lease terms or reviewing the contract.
Advantages of using a realtor when looking for a rental in Edmonton
Now that we understand how realtors work, let's look at the advantages of using them.
The first significant advantage is access to an expanded list of properties. As mentioned, realtors have access to the MLS, which often contains properties that are not advertised publicly. If you are looking for a property in a popular area or have specific requirements, being able to view properties on the MLS before they are listed on public websites can be a huge advantage.
The second advantage is professional advice and guidance. If you are new to Canada or Edmonton, the rental process can seem confusing and complicated. A realtor can explain the system to you, advise you on what to look for in a lease, and help you avoid potential mistakes. For example, a realtor can tell you that many landlords in Edmonton require a deposit of one month's rent, but no more, and that if a landlord asks for more, it could be a red flag. A realtor can also help you understand your rights as a tenant in Alberta.
The third advantage is time savings. If you are looking for a place to live on your own, you will need hours to browse different websites, compare properties, contact landlords, and arrange viewing times. A realtor does most of this work for you. They know where to look, what questions to ask, and how to organize an efficient viewing schedule. If you are busy with work or have other responsibilities, saving time can be a huge advantage.
The fourth advantage is assistance with negotiations. If you find a property you like but there is something in the contract you don't like, a realtor can help you negotiate with the landlord. Realtors have experience in this area and know how to approach the conversation in a way that won't alienate the landlord. This is especially helpful if you are unsure of your negotiation skills or are afraid to represent your interests appropriately.
The fifth advantage is assistance with filling out paperwork. The rental application process can require a lot of paperwork: proof of income, letters of reference from previous landlords, a copy of your ID, and other documents. A realtor can help you gather these documents and make sure everything is filled out correctly before you submit your application.
Disadvantages of using a realtor when looking for a rental
On the other hand, using a realtor also has some disadvantages that are worth considering.
The first potential disadvantage is limited coverage. Not all properties in Edmonton are listed on the MLS or available to realtors. Many private landlords only list their properties on Kijiji, Rentfaster, or other local websites. This means that if you only work with a realtor, you may miss out on some good properties that are listed privately.
The second potential disadvantage is conflict of interest. Although a realtor should work in your best interests, sometimes their interests may differ slightly from yours. For example, if a realtor receives a commission from a landlord for finding a tenant quickly, they may be less motivated to consider your specific needs and more motivated to simply show you a property as quickly as possible. In addition, if a realtor works with a landlord with whom they often work, they may be less willing to negotiate aggressively on your behalf for fear of upsetting the landlord and losing future commissions.
The third potential disadvantage is the ability to communicate directly with the landlord. Some people prefer direct contact with the landlord without an intermediary because they believe it allows them to communicate more passionately and possibly negotiate the terms of the lease with the landlord. If you work with a realtor, communication goes through the realtor, which can slow down the process.
The fourth potential disadvantage is the possibility of paying a real estate agent for services that you could do yourself. Some real estate agents may overstate their value or convince you that you need their help even for some things that you can easily do yourself, such as discussing certain terms with the landlord or filling out paperwork.
The fifth potential drawback is the lack of a personalized approach. If you work with a realtor who is busy and has many clients, you may feel like just another client. The realtor may not have time to discuss your specific needs in depth or may select properties that do not quite meet your needs.
The current situation with realtors and rentals in Edmonton
It is important to understand that the rental market in Edmonton and more broadly in Canada is evolving. Traditionally, realtors have been more involved in buying and selling real estate than in renting. However, over time, some realtors have become more actively involved in rentals.
There are now a varying number of realtors and agencies in Edmonton that specialize in rental properties. Some of them do this as part of a broader service that also includes buying and selling. Others specialize exclusively in rental properties.
However, it is worth noting that the MLS system and realtor commissions are less standardized for rentals than for buying and selling. Some landlords list their properties through MLS, while others do not. Some landlords offer a commission to the realtor, while others do not. This means that your experience with a realtor when renting in Edmonton can vary greatly depending on which realtor you choose.
Alternatives to realtors when looking for a rental
If you decide not to work with a realtor, you have several alternatives.
The first alternative is to use popular rental websites. Sites such as Apartments.com, Rentfaster, Kijiji, and others allow you to filter properties by location, budget, number of bedrooms, and other criteria. You can browse hundreds of properties from the comfort of your own home, saving you time. In addition, you can often get more information about the property, including photos, detailed descriptions, and landlord contact information, often directly through the website.
The second alternative is to use social media and local groups. There are many Facebook groups and other social media communities in Edmonton dedicated to rental housing. You can join these groups and ask for recommendations from local people. People often share information about good landlords and properties they have just found.
The third alternative is to contact property management companies directly. If you know which property management companies operate in Edmonton (e.g., Boardwalk, Mainstreet, and other large companies), you can visit their offices or call them directly to inquire about available properties. Property management companies often have websites where they list available properties.
The fourth alternative is a combined approach. You can use rental websites to find a basic list of properties and then do additional research by reading other people's reviews, calling landlords, and arranging viewings yourself.
How to determine if you should work with a realtor
Now that we've looked at the pros and cons, how can you determine if you should work with a realtor when looking for a rental in Edmonton?
Think about it this way: if you have time, are confident in your English skills, and know how to search for properties through websites, then you can probably find a place on your own without a realtor. This is especially true if you don't have very specific needs and are willing to consider several options.
On the other hand, if you are new to Canada or Edmonton, unsure of your English skills, have limited time to search for a place, or have very specific needs (e.g., a place that allows large dogs, near a specific public transit line, and with specific amenities), then working with a realtor may be worthwhile.
In addition, if you want to negotiate the terms of your lease and are unsure how to do so, a realtor can be a valuable resource.
If you do decide to work with a realtor, choose one who has experience with rentals in Edmonton and who seems interested in understanding your specific needs. Ask the realtor about their commission and make sure you understand who pays and how much.
Conclusion: The decision is up to you
The answer to the question “Should you rent through a realtor in Edmonton?” is not clear-cut. For some people, a realtor is a valuable resource that saves time and helps them avoid mistakes. For others, especially those who are confident in their skills and have the time to search on their own, a realtor may be an unnecessary middleman.
The most important thing is to understand your own needs, capabilities, and comfort level. If you are confident that you can find a place on your own through websites, then give it a try. If you need help or are pressed for time, a realtor may be a good choice. And remember, you can always try on your own first and then go back to a realtor if you start to get frustrated with the results.