Is it common for a property mgmt co. to not pay broker commission? They are not returning calls to our broker.

I'm thinking they don't respond to our broker because they don't want to pay the commission. Our lease is up next year May. Looking to negotiate a new long term lease, but leasing office is not returning phone calls to our broker.
In Leasing Property - Asked by jared n. - Aug 9, 2013
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Answer(s)

Bill B.
Los Angeles, CA

This could be anything from failed communication to right down ignoring you. I would suggest comparing your current rent vs. the current market rent and see the difference, maybe they do not want to renew. Possible plans to remodel... If you are on a gross lease, possibly they want to get NNN lease tenants to increase cash flow. I would knock on their door, and request a meeting.

Aug 10, 2013
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David S.
Broker/Agent
Greensboro, NC

They very well could be ignoring the broker. I've had this happen just recently to me. He needs to go knock on the door as Gabriel says. Most companies that specialize in commercial have no problem paying brokers, but there are many mom and pop operations out there that don't do a lot of commercial and lose tenants due to not paying brokers.

Aug 12, 2013
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John P.
Broker/Agent
Glen Burnie, MD

It is the Landlord who pays the Commission--not the property management company. Also, be sure you are entitled to a commission. Brokers (Property Managers) are required to "Co-operate" but are not required to pay the advertised fee/commission if you were NOT considered to be the "Procuring Cause". If your Client spoke to the Landlord/property management prior to your contact you may not have a right to a commission. If your "Client" was really just a "Customer", you were a "Sub-Agent" and possibly not entitled. According Maryland anyway. I usually specify in my listings that "Sub-Agent" compensation is "0%".

Aug 18, 2013
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