Do You Need a Real Estate Agent to Rent an Apartment in Chicago?

Finding an apartment in Chicago can seem pretty straightforward: search online, find a few places you like, schedule some showings, and submit an application.

Sometimes, it really can be that simple.

But Chicago's rental market includes everything from professionally managed apartment buildings to individually owned condos, two- and three-flats, single-family homes, and privately managed properties. How those rentals are marketed, shown, and leased can vary considerably.

That's where renter representation can come in.

A real estate agent can represent you during a rental search, but that doesn't necessarily mean every renter needs an agent. Understanding who an agent represents, what services you're receiving, and how that agent is compensated can help you decide what makes sense for your search.

The Listing Agent Doesn't Necessarily Represent You

This is probably the most important distinction to understand.

When you inquire about an apartment online, the person responding may be the listing agent representing the landlord.

Their job is to market the property and represent their client's interests in the transaction.

A renter's agent, on the other hand, works with the prospective tenant.

Depending on your agreement and the services being provided, that may include helping identify properties, coordinating showings, communicating with listing agents or property managers, preparing an application or offer, and helping you navigate the rental process.

Knowing who represents whom prevents a lot of confusion.

What Does a Renter's Agent Actually Do?

The exact services can vary by brokerage and by the agreement you establish with your agent.

At the Brian Somera Group, renter representation is intended to be an advisory service, not simply access to apartment listings.

Depending on the search, representation may include:

• discussing your priorities, budget, timing and search strategy

• helping establish realistic expectations based on the market

• identifying properties that fit your criteria

• setting up a customized property search

• researching listings and availability

• communicating with listing agents and property managers

• coordinating property tours

• accompanying you to showings when appropriate

• helping evaluate different options

• assisting with the application or offer process

• helping you understand the steps between application and lease signing
  

The purpose is to have someone representing your side of the transaction and helping you navigate the process.

Do You Have to Work With a Real Estate Agent?

No.

Many Chicago renters successfully find apartments on their own, particularly when searching large professionally managed apartment buildings or properties that allow prospective tenants to schedule directly with management.

Other renters value having their own agent involved.

Representation can be particularly useful if you're unfamiliar with Chicago, relocating from another city, have specific property requirements, are searching for individually owned condos or homes, have a complicated timeline, or simply want professional guidance throughout the process.

The important question isn't whether everyone should use an agent.

It's whether the services an agent provides are valuable for your particular search.

How Is a Renter's Agent Paid?

This is an area where renters should ask questions upfront.

Sometimes a landlord or listing brokerage offers compensation to an agent who brings the successful tenant. In other situations, the amount offered may cover only part of the renter's agent's agreed compensation—or there may be no landlord-paid compensation at all.

That means you should not assume that using an agent is automatically free.

If you're entering into a tenant representation agreement with a REALTOR®, current professional standards call for transparency about compensation, including the amount you may be responsible for and the possibility of compensation coming from a landlord, another broker, or another party. Broker compensation is not set by law and is negotiable. National Association of REALTORS®

Before beginning a represented search, make sure you understand:

• what services your agent will provide

• whether your relationship is exclusive or non-exclusive

• how your agent will be compensated

• whether another party may pay some or all of that compensation

• what, if anything, you could be responsible for paying

Those expectations are much better established at the beginning of the search than after you've found an apartment you want.

Why Might an Agent Ask You to Sign an Agreement?

A representation agreement establishes the relationship between you and the brokerage.

It can describe the services being provided, the duration and scope of the relationship, compensation, and other responsibilities.

The real estate industry has put considerably more emphasis on clearly documenting representation and compensation in recent years. For consumers, the important takeaway is simple: understand the relationship you're entering into before you sign anything.

For REALTORS®, professional standards specifically address buyer and tenant agreements and require disclosure of compensation and potential payments from other parties. National Association of REALTORS®

Ask questions about anything you don't understand before signing.

Why Doesn't Every Agent Work With Every Rental Search?

Full-service renter representation requires time.

Searching properties, researching availability, communicating with multiple listing agents, scheduling appointments, traveling to and attending showings, and helping with applications can involve a significant amount of work.

For that reason, agents and brokerages may have different criteria for the rental searches they take on.

At BSG, we evaluate whether our representation model makes sense for the renter's needs before beginning a search. In some cases, a renter may actually be better served by conducting a self-directed search rather than hiring us.

That's not necessarily a disadvantage. Chicago renters have access to a wide variety of apartment-search tools and direct leasing options.

When Does Renter Representation Make Sense?

Consider working with an agent if you:

• want professional guidance rather than simply property listings

• are relocating and don't know the Chicago market well

• are having difficulty narrowing down neighborhoods or properties

• are interested in individually owned condos, houses or smaller properties

• have specific requirements that make the search more complicated

• want someone representing your interests throughout the process

On the other hand, if you prefer to contact buildings directly, enjoy doing your own research, have a very broad search, or simply want someone to unlock individual apartments you find online, full-service representation may not be the best fit.

Start by Choosing the Right Search Approach

There's no single best way to find an apartment in Chicago.

Some renters benefit from full-service representation. Others are perfectly capable of handling the search independently.

Before deciding, understand the services being offered, who the real estate professional represents, and how compensation works.

If you'd like to explore working with the Brian Somera Group, you can learn more about our renter representation process and tell us about your upcoming move. We'll review your information and help determine whether our services are the right fit for your search.