What is a brokerage fee for rental property?

A brokerage fee (or brokerage commission) for rental property is a one-time payment made to a real estate broker or agent who helps connect a landlord with a tenant. In India, this fee is typically paid by the tenant, the landlord, or shared between both, depending on the city and agreement.

Standard Rates in India

• Mumbai: 1 month's rent paid by the tenant in most cases.
• Bangalore: 1 month's rent (often shared 50:50 between landlord and tenant).
• Delhi/NCR: 15 days to 1 month's rent.
• Hyderabad/Chennai: 1 month's rent, typically paid by the tenant.

What the Broker Does

• Identifies matching properties or tenants.
• Arranges site visits.
• Negotiates terms between parties.
• Assists with agreement documentation (in some cases).

Brokerage is a legitimate cost of renting through an agent, but with no-brokerage platforms and direct listing portals now widely available, tenants increasingly have options to avoid this expense. Always confirm brokerage terms and payment timing before beginning a property search with an agent.