Gemma Deming, Other/Just Looking in Miami Beach, FL

How do rental commissions on condos generally work in Miami Beach?

Asked by Gemma Deming, Miami Beach, FL Thu Feb 28, 2008

I understand that 10% on a one year lease is a common commission. However, is it standard practice to collect that 10% for every year that the renter stays in the condo beyond the first year, or is it generally just a one time commission for the first year's lease?

Help the community by answering this question:

+ web reference
Web reference:

Answers

4
Amarie87, , Chicago, IL
Mon Mar 21, 2011
When does the 10% (or other arraged percentage) get paid to the agent? Do they get paid all at once or do they get that commission over a period of time?
0 votes
Dan Maza, Agent, Miami Beach, FL
Mon Mar 3, 2008
It is 10% of the gross revenue or what ever % commission was agreed upon in writing.

That means if the tenant renews you owe and if you do not pay and he/she finds out, he/she may bring about legal action for the balance owed on all renewal years.

Typically the agent enters renewal years commission on the listing agreement for the residual commission you owe as a landlord. If the agent obtained a good tenant who stayed there on a long term, he/she deserves the commission from the renewal years.

I have read a case where a agent did not enter a commission clause in the listing agreement covering renewal years. The agent discovered that the landlord renewed the lease on the property with the tenant and did not pay the renewal commission. Legal action was brought on by the agent against hi client/Land Lord and the court ruled in favor of the agent. The court's rationale was that it was implied or assumed that 10% of the commission applied to the gross revenue generated by the tenant not by the initial lease term.

I hope this answers your question.
0 votes
Ines Hegedus…, Agent, Miami, FL
Thu Feb 28, 2008
Gemma - it really depends on the contract between the Lessor and the agent. If it is stipulated in that contract that renewals will also carry a commission, then a commission will be due.
Like everything in life, it can be negotiated.
0 votes
Mott Marvin…, Agent, Sunny Isles Beach, FL
Thu Feb 28, 2008
Both scenarios are in line with common practice. Usually, the commission is paid on the first years lease and rarely does the agency send an invoice for the subsequent leases. It is standard practice that the commission is recurring.
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more