Typically commissions paid on lease renewals are spelled out in the listing agreement, the lease agreement, or a sidebar agreement at lease execution. They can be as high as 3% or as low as 1%. A lot of times it depends on the length of the lease renewal and the aggregate net income the landlord derives. Most landlords rarely pay commssions on lease renewals longer than 5 years. If you don't have it spelled out ahead of time it is quite difficult to get paid....especially today! One caveat would be to work with a landlord (with a written commission agreement) to broker an existing tenant's lease renewal....I just did one for 2 years at 2% (total income of $180K to landlord) and a commission of $3,600....it took me 45 minutes to get it done.
Nov 3, 2009