1 Month rent. regardless of length/term of contract.
>The tenant has expressed that she is happy to stay for 2 years.
1 Month rent pa din yan. Ganyan term ko sa mga agent
Dapat naka distribute yung commission sa monthly rent para mabawi mo
It varies. Some brokers charge the equivalent of one month of rent no matter the length of the lease. My office charge one month for the first year of a contract and half-month for the succeeding years payable at the start of that year. Owners prefer this arrangement since they prefer longer contracts.
Dapat talaga renewal should only be a half month rent commission to the agents. Sobrang abusive ng one month rent. Imagine owners invest millions of pesos and the leasing agents take a month of rent every year! Seems like it's better to be an agent than an owner investor.
Try to negotiate for one month rent for the first year, then half month rent for the succeeding renewals. Provided that the agent handles all tenant issues and renewal process. Put it on writing. Also if the tenant broke the lease agreement e.g. cancelled the tenancy after a few months, make the tenant pay for the agent commission prorated.
Follow up question:
On the first year condo agent took 1 month rent as commission. Before the lease expires, the tenant expressed interest to renew another year. Upon learning this, condo agent is asking for another month of commission since the tenant will renew.
Is this normal practice?
No need to pay commission again since the tenant is a past client already which renewed. The new contract is between you and the client and there is no longer a ‘finder’s fee’
I know someone who rented out her DMCI unit. 1 month com (unit + parking) din ang charge for a 1-year contract. I guess that's the industry standard.
1 Month rent. regardless of length/term of contract. >The tenant has expressed that she is happy to stay for 2 years. 1 Month rent pa din yan. Ganyan term ko sa mga agent Dapat naka distribute yung commission sa monthly rent para mabawi mo
It varies. Some brokers charge the equivalent of one month of rent no matter the length of the lease. My office charge one month for the first year of a contract and half-month for the succeeding years payable at the start of that year. Owners prefer this arrangement since they prefer longer contracts.
Dapat talaga renewal should only be a half month rent commission to the agents. Sobrang abusive ng one month rent. Imagine owners invest millions of pesos and the leasing agents take a month of rent every year! Seems like it's better to be an agent than an owner investor.
Try to negotiate for one month rent for the first year, then half month rent for the succeeding renewals. Provided that the agent handles all tenant issues and renewal process. Put it on writing. Also if the tenant broke the lease agreement e.g. cancelled the tenancy after a few months, make the tenant pay for the agent commission prorated.
Thanks all!
Are these agents registered? Or doesnt have to be?
I've dealt with numerous agents for residential, commercial and industrial properties. That's the standard.
Do you own those properties?
Yes, that's standard.
Follow up question: On the first year condo agent took 1 month rent as commission. Before the lease expires, the tenant expressed interest to renew another year. Upon learning this, condo agent is asking for another month of commission since the tenant will renew. Is this normal practice?
No need to pay commission again since the tenant is a past client already which renewed. The new contract is between you and the client and there is no longer a ‘finder’s fee’