Rental mandates are the source of a rental agent’s
livelihood, it determines the agent’s duties and importantly the commission
payable. While rental mandates fall into two common categories: “place the
tenant only” or “place the tenant and manage the property”, the commission
charged varies widely.
The TPN Commission Survey results are in: rental mandates to “place the tenant only” indicate some agents take home as little as 1% while others comfortably charge 15%.
The commission of rental mandates to “place the tenant and
manage the property” are structured either as:
- An upfront placement commission and then monthly management commission; or
- A monthly management commission (which includes the placement commission) and this commission combination kicks off in the single digits at 5.5% pushing up to 27.06%.
As a side note, given the increasing number of tenants who cancel their leases
early, the rental agents who charge a placement commission in addition to the
monthly
management commission are protecting their payment for work performed,
as they are able to charge the pro-rata cost of the placement commission onto
the tenant for the early cancellation as part of the reasonable penalty to find
a replacement tenant.
Click here for the Commission Survey Results for the lows, the highs and the average commission.
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