Rental Commission: What You Need to Know About Fees, Rules, and How It Works

When you rent a property in India, a rental commission, a fee paid to a real estate agent for connecting tenants with landlords. Also known as rental brokerage fee, it’s a standard part of the process—but not always fair or transparent. Many people assume the landlord pays it, but in many cities, tenants end up footing the bill. That’s not illegal, but it’s often unclear until the last minute. You might sign a lease, only to find out you owe 5% to 10% of your annual rent to the agent. That’s not a small amount—it could be thousands of rupees.

So who actually pays the rental commission? It depends on location, negotiation, and local customs. In Mumbai or Delhi, agents often charge tenants because landlords expect to get rent without effort. In smaller towns, landlords may cover it to attract tenants faster. The real estate agent commission isn’t fixed by law in India, which means there’s no official cap. Some agents charge one month’s rent. Others charge half. A few even try to charge both sides. That’s why understanding your rights matters. You’re not obligated to pay unless it’s written into the agreement. Always ask upfront: Who pays the commission? Get it in writing. If an agent says, "It’s standard," ask for proof. There’s no standard—just habits.

The property rental fees you see advertised online? They’re often hidden. Listings might say "No brokerage," but that’s usually just a trick to get you to call. Once you show interest, the agent drops the fee. Some landlords list their own properties to avoid paying commission, but they might still expect you to pay. The smart move? Compare at least three listings. If one says "brokerage extra," another says "no fee," and a third says "negotiable," you’re seeing the real market. Don’t rush. Use the time to ask for a breakdown: Is the fee one-time? Is it refundable if the deal falls through? Can you pay in installments? Most agents won’t offer this, but if you ask, you’ll know who’s serious.

There’s also the tenant rental costs side of things. Beyond commission, you’ve got security deposits, advance rent, maintenance charges, and sometimes even registration fees. All of these add up. A 10% commission on a ₹30,000/month apartment? That’s ₹3.6 lakh over a year. That’s more than most people pay for a full year’s rent in smaller cities. You’re not just paying for a service—you’re paying for access to a market that’s designed to favor agents. But you don’t have to accept it. There are apps, direct landlord listings, and community boards where you can find places without any commission at all. You just need to look beyond the first page of results.

What you’ll find below are real stories and clear guides from people who’ve been through this. Some saved money by negotiating. Others fought back when they were overcharged. A few discovered they didn’t even owe anything under Indian rental laws. These aren’t theoretical tips—they’re lessons from actual renters and landlords in India. Whether you’re a student moving to a new city, a professional relocating for work, or someone looking to rent out your own place, the next posts will show you exactly how to handle rental commission without getting taken advantage of.