Do your owners pay lease commissions paid on net or gross rent?

In Leasing Property - Asked by Jennifer G. - Sep 3, 2013
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Answer(s)

Rick J.
Brattleboro, VT

Jennifer, That depends on the agreement between the owner and the agent. It is usually on the gross. All the items in an agreement are negotiable to some extent. If you are thinking of leasing your property with an agent these items can be discussed beforehand. I have offered several options to clients in this regard and let them choose the one they prefer. Sometimes it will depend on the length of the lease and the quality of the tenant. Good luck. Rick John, former real estate broker in VT & NH, Instructor of real estate education.

Sep 3, 2013
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Brent C.
Broker/Agent
Round Rock, TX

Depends greatly on what part of the country you are in.
In Austin, TX:
Office leases- 50/50 depending on the landlord
(if it is a full-service building, then the commission is almost always for the base and expenses)
Retail leases- almost always only on the base rents
Industrial leases- usually on the base rents only

Sep 4, 2013
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Damon D.
Broker/Agent
Bala Cynwyd, PA

In PA / NJ / DE, for retail/shopping centers, owners pay on the base rents.

Sep 4, 2013
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Thomas S.
Broker/Agent
Boca Raton, FL

In South Florida the commissions are usually paid on the base rent. Unless a property is near empty and the owner wants someone in quick. However when you have a gross lease, you can usually get paid on the gross. Every situation can be different so make sure you know how you will be compensated before you show the property. Do not be surprised, if you show a property without knowing how you will get paid. That the commission might change to something less than what you thought. Good luck.

Sep 5, 2013
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James R.
Broker/Agent
Lemoyne, PA

Retail net; office usually gross, but sometimes net; warehouse and industrial net; ground leases net. However, it is always negotiable.

Sep 7, 2013
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Real Estate P.
Listing Administrator
Houston, TX

Hi Jennifer,
Owners in my experience pay based on the monthly rent listed on the lease agreement.
Although, as you can see from all the different answers ..... the famous phase, " It depends " comes into play. lol Owners could also structure flat rate agreements with you, like $100-$1000 per lease. Also remember it's all open to negotiation. Are you paying for marketing sites or are they? Newspaper adds? Signs? Etc. My suggestion is to see what the owner is looking to pay, get it in writing, and perform by getting them a lease ....... even if the commission is lower than market you can build up your recommendations and experience. This investment in yourself will end up paying off more than any 1 commission. Plus hopefully you LOVE to Lease!! It's a blast finding people places to call home and/or a spot to build their dream business in! Best of Luck, Bonnie Laslo

Sep 9, 2013
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