A competitive tiered comm.schedule for soliciting res. leases (1yr)?

Besides just offering 1st month's rent to leasing agents, what other competitive tiered schedules are out there? Signing multiple leases within certain periods of time, etc. Most incentive programs increase the ROI to selling agents, but in a for profit PM business, would the return be reduced as volume increased? Please give examples of what is considered competitive in this area of the Real Estate Business.
In Leasing Property - Asked by Dru H. - Jun 14, 2011
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Answer(s)

Aurelio M.
Broker/Agent
Torrance, CA

For residential leases I haven't really seen any commission schedules that pay past a year. What you may want to do is make the deal sweeter for the tenant than the agent. Or offer a bigger move in commission. So if the average commission is 2.5% of the first year, just offer 4% for example. Better the egg today than the chicken tomorrow. At least that's what I think.

Jun 18, 2011
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Chris R.
Broker/Agent
Denton, TX

Consider increasing the commission with more lease deals. Play with the figures. More leases done mean more units leased and more rental income and happier owners and greater management fee income...... so if an agent leases 3 units - the commission is X of the first month's rent (whatever is prevalent - from one month to any portion thereof). After 3 (4, 5) then offer an extra $X or extra X%. So on # 4 and 5... they get a boost in the $ to entice them to bring you more deals.
It creates a win - win situation. It is only natural for an agent to be cognizant of a good deal for the potential tenant - but - at t the same time to be aware that leases that yield more commission income to themselves is a good thing too. Equally - I'd make it as easy as possible for the agent to get the deal done - easier than your competition - and they will like bringing deals to you. As well - make sure your properties are priced well and in good condition and EZ to show. All adds up to tilting the table in your favor - for you and your property owners.

Jul 3, 2011
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