follow up to commission question.

We have a sign on the space for rent.I also allow brokers to meet me with their prospects. We are owner managers, however, my day to day is Prop mgmt. We only have a vacancy once every 4 years.My understanding is that it is a seperate duty above the P.M.job. Therefore, the earned commission. Comments...
In Leasing Property - Asked by doug s. - Sep 29, 2011
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Answer(s)

Tiffany P.
Broker/Agent
Astoria, NY

The earned commission goes to the Real Estate agency that has brought you the client. Once the tenant and owner of premises,signs the lease agreement, that is when the agency/agent gets paid.
Either by the owner/property manager of the tenant. It all depends on what their [tenant and agency] is.

Sep 29, 2011
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yvonne s.
Broker/Agent
New York, NY

What the broker said is true, however everything in real estate and contracts is by agreement and negotiation. A management contract should contain a clause addressing this issue. The management company can negotiate a commission schedule for commercial in their contract. For example, if they lease a space they get a full commission, but if leased by an outside broker, they get a half commission and the broker gets a full commission. (In the alternative you can include a flat fee in your contract. It is all by agreement).
Yvonne Stafford

Sep 30, 2011
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Chris R.
Broker/Agent
Denton, TX

Since you are the owner / manager then you are offering the property to the brokerage community and for their effort and service to bring you a tenant you will offer X% - whatever that might be - to the brokerage community to entice them to bring you a qualified tenant and if they do - they get the X% and you get a tenant that benefits both your positions as owner and manager. The amount of the X is up to you but certainly should be competitive in the market place commensurate with what the broker may be able to obtain from comparable properties that might also fit the needs of the prospective tenant he may be working with. Certainly - if YOU - as the manager - bring the tenant to the deal then you would likely be the one to receive the commission. Would depend on the agreement or understanding that exists between teh ownership side and the property management side of your business.

Oct 12, 2011
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