The short version: in the great majority of GTA residential leases, the landlord pays. A tenant working with me for a standard rental typically pays nothing.
How it normally works
When an owner lists a unit for lease, they agree with their listing brokerage on a fee (most commonly the equivalent of one month's rent), and agree to share part of it with whichever brokerage brings the tenant. That co-operating share is what pays for tenant representation. It comes out of the landlord's side of the deal, not out of your deposit.
The landlord agrees a fee with their listing brokerage when the unit goes on the market.
Part of that fee is published to other brokerages as the co-operating commission.
My brokerage receives that share when you sign, and I'm paid from it.
You pay your deposit and your rent. Nothing else.
Two situations can change this. Some private landlords list without offering any co-operating commission. In that case, if you still want representation on that specific unit, we'd agree in advance and in writing what that costs. And some units offer a reduced share that doesn't cover the work involved. Either way you'd hear it from me before we viewed anything, not afterwards.
Your representation agreement (the BDRA) is where any fee owed by you would be written down. If that section is blank or reads zero, you owe nothing. Read it before signing. That's exactly what it's there for.
What you get for it
Someone who has seen the building before, who can tell you whether the rent is in line with what comparable units actually leased for rather than what they were asked for, who writes the schedule so your verbal agreements are enforceable, and who knows which listing agents return calls.
"He conducted thorough research and diligently sent us listings that perfectly matched our needs and preferences. From scheduling viewings to guiding us through the application process and closing the deal, James was incredibly helpful and supportive every step of the way."Gautam, Midtown