How Apartment Locators in Dallas Work (and Are They Really Free?)
An apartment locator in Dallas helps you find and lease an apartment, and is usually paid by the apartment community rather than by you. Here is how apartment locators work, whether they are really free, and what Texas law requires of them.
If you are moving to Dallas, someone has probably told you to “just use an apartment locator.” In many cities that phrase means nothing, but in Dallas–Fort Worth apartment locating is a well-established profession. So how do apartment locators in Dallas work, and are they really free? Here is a clear, honest explanation.
What an apartment locator does
An apartment locator helps you find and lease an apartment. A good locator:
- asks about your budget, move date, bedrooms, pets, parking and commute;
- searches communities across the metroplex, including current specials;
- sends a short, curated list instead of hundreds of links;
- schedules tours (in person or on live video);
- helps you compare fees, deposits and lease terms; and
- guides you through the application and move-in.
Locators are most helpful when you are moving from out of state and do not yet know the neighborhoods, or when your situation is a little complicated: a new job with no Texas rental history, a pet with breed restrictions, or a tight move date.
How locators get paid
In DFW, most apartment communities pay a referral commission to the locator who brought them the renter, once the renter signs a lease and moves in. Communities budget for this as a marketing cost, much as they budget for online listings. That is why, for most renters, using a locator does not add a separate fee.
Is it “free”? For the renter, usually yes: you do not pay the locator directly, and the rent quoted is generally the same rent you would be offered by walking in. But it is worth understanding the incentive. A locator is paid only when you lease at a community that pays commissions, so ask how your locator handles communities that do not pay, and whether they will tell you about them.
The one rule that protects your locator’s commission
Most communities pay the locator only if the locator is listed on your guest card on your very first visit or contact. If you tour a property on your own first, the community may decline to pay the locator. So if you are working with a locator, mention their name on every first visit, tour, online application or phone call.
Do apartment locators in Texas need a license?
Yes. This is the most important question to ask. Under the Texas Real Estate License Act, a “residential rental locator” is a person who offers, for consideration, to locate an apartment unit for a prospective tenant, and a person may not act as a residential rental locator without a real estate license issued by the Texas Real Estate Commission (TREC). Texas sales agents must also be sponsored by a licensed broker, who supervises their work.
You can verify any locator on TREC’s license holder search. A licensed locator’s website must also link to TREC’s Information About Brokerage Services and Consumer Protection Notice. Check for those links before you sign anything.
What about rebates?
Some locators advertise that they will share part of their commission with you as a rebate. TREC rules allow this in certain cases, but the advertising has to follow specific rules, and some communities have a no-rebate policy. If a rebate sounds too good to be true, ask for the terms in writing.
Questions to ask a Dallas apartment locator
- Are you licensed with TREC, and who is your sponsoring broker?
- How are you paid, and will you tell me about good options that do not pay you?
- Do you work all of DFW or only certain areas?
- Can you tour units for me on live video?
- How do you handle application issues such as no U.S. credit history?
When you might not need a locator
If you already know exactly which building you want, or you are moving across town and know the neighborhoods well, you may not need help. Locators add the most value when you are new to the area or short on time.
How I work
Kwanamo Relocation is a relocation consulting firm, not an apartment locator or brokerage, and I am currently studying for my Texas real estate license. I help you choose the right areas and plan your search, then partner you with trusted, licensed Texas agents for leasing or buying. Start with the intake form and I will be in touch.
Frequently asked questions
Are apartment locators in Dallas free?
For most renters, yes. Apartment communities usually pay the locator a referral commission after you sign a lease, so you do not pay the locator directly.
How much do apartment locators charge?
Most charge renters nothing. The apartment community pays the locator, and the amount varies by property. Ask your locator to explain in writing how they are paid.
Do apartment locators need a license in Texas?
Yes. Texas Occupations Code §1101.351 prohibits acting as a residential rental locator without a real estate broker or sales agent license issued by TREC.
What is a guest card?
The registration a community completes on your first visit or contact. List your locator's name on it, or the community may not pay the locator.
Are apartment locators worth it?
They are most useful when you are moving from out of state, short on time, or have a complicated situation such as no Texas rental history or pet restrictions.
Sources
- Texas Occupations Code, Chapter 1101, §1101.002(6) and §1101.351(a)(2)
- TREC FAQ, Is a real estate license necessary in order to be an apartment locator?
- TREC FAQ, Is TREC interested in compliance by residential rental locators? (rebates and Rule 535.155)
- TREC Rules 531.18 and 531.20 (Consumer Protection Notice and IABS links)