Rental Commission: What You Really Pay to Rent a Property in India

When you rent a property in India, rental commission, a fee paid to the real estate agent for connecting tenants with landlords. Also known as rental agent fee, it’s often hidden in fine print or passed off as a "service charge." Unlike buying, where commission is usually clear, renting can leave you confused—especially when you’re not sure if you’re supposed to pay it at all. Many tenants assume the landlord covers it, but that’s not always true. In cities like Mumbai, Delhi, and Bangalore, it’s common for tenants to pay 1 to 2 months’ rent as commission—sometimes even more if the agent is pushing a high-end listing.

This isn’t just about money. rental commission, a fee paid to the real estate agent for connecting tenants with landlords. Also known as rental agent fee, it’s often hidden in fine print or passed off as a "service charge." Many tenants assume the landlord covers it, but that’s not always true. In cities like Mumbai, Delhi, and Bangalore, it’s common for tenants to pay 1 to 2 months’ rent as commission—sometimes even more if the agent is pushing a high-end listing. This isn’t just about money. landlord commission, the fee a property owner pays to an agent for finding a tenant. Also known as property management fee, it’s often split between agent and broker, and sometimes hidden in the rent amount itself. If you’re a landlord, you might think you’re saving money by not paying upfront—but if your agent charges the tenant double, you’re still losing control over the transaction. And if you’re a tenant, you’re paying twice: once for rent, once for the agent’s cut.

What’s worse? There’s no legal cap on rental commission in most parts of India. Unlike property sales, where the Real Estate (Regulation and Development) Act sets some rules, rentals operate in a gray zone. You might find agents who claim they’re "following market norms," but those norms aren’t written anywhere. Some landlords include the commission in the rent and call it "inclusive pricing." Others demand cash payments with no receipt. And if you complain? You might lose the flat—or worse, get blacklisted by the agent.

But here’s the truth: you don’t have to accept this. Many agents in India now offer transparent, fixed-fee models. Some even work on a flat rate of ₹5,000 to ₹10,000, regardless of rent. Others let landlords pay everything. The key is asking upfront—before you sign anything. If an agent says, "It’s standard," ask: "Standard where? And can you show me the agreement?"

Below, you’ll find real stories and breakdowns from people who’ve been through this. You’ll see how much commission others paid in Pune vs. Hyderabad, how some landlords avoid fees entirely, and what to say when an agent tries to pressure you. Whether you’re renting your first apartment or managing a dozen units, knowing how rental commission works saves you money—and stress.