In Bal Harbour, Florida, what is the usual rental broker fee?

Asked by Sidney, Bal Harbour, FL Tue Oct 13, 2009

How common is it for a rental broker to collect 10% of first year's total rental and then collect an additional 10% at each RENEWAL of the lease?

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4
Magda S. Sal…, Agent, Miami, FL
Fri Aug 31, 2012
Hello Sidney, the going rate is 10% of the total lease value, and continuing yearly for the duration.
0 votes
Mott Marvin…, Agent, Sunny Isles Beach, FL
Wed Oct 14, 2009
The typical fee that an owner pays is 10% of the gross lease value - Most agencies do collect the same amount on each subsequent renewal. The fee that is charged for "short-term" rentals is anywhere from 15-25% of the lease value.

Real Estate In Miami, FL
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Beth Jenkins, Agent, Miami Lakes, FL
Tue Oct 13, 2009
Hi Sydney,
As stated below on the first answer, the first year is 10%, and we are now very commonly collecting 10% on ech subsequent lease year. The practice is more common the past few years as the real estate market became tighter. I feel it benefits both the landlord and the broker.

The owner/landlord is ensured to keep the tenant in place. When the property becomes vacant it is an average of a 2 month vacancy. The renewal pays for itself in that sense. And realtors need to stay in business so that they can be there for the next time you need them to rent your property. SIce rental business now makes up a large portion of the business, it is important to generate the income for each year as you renegotiate the clients lease. It is only legal to write a one year lease in Florda, unless an attorney writes a longer lease.
Once a tenant goes month to month it is not beneficial for either party, so the renewal of the lease with new lease terms is what is being paid for as well as possibly a rental increase. The brokers who brought the client to the transaction are compensated as it is now a new transaction. This would be true in any business transaction, such as renewing a contract on any service.

I hope that helps you understand why thisi s a common practice and why it is neccassary for all involved,

All the best,
Beth Jenkins
South Forida Brokers
786-374-4778
Web Reference:  http://www.arealtyteam.com
0 votes
Patrick Casey, , Miami Beach, FL
Tue Oct 13, 2009
Brokerage fees for rentals are typically either 10% of the first year's total rental or one month's rent. Personally, I do not believe in the renewal commission. But it is not uncommon.
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