What usually happens in terms of commission if a rental is for more than 12 months?

Asked by Lara Stone, Chicago, IL Sun Aug 12, 2012

One month as the commission for a 12 month rental seems to be the rule but what happens if the renters want to extend the lease in terms of extra commission?

Help the community by answering this question:

+ web reference
Web reference:

Answers

12
Matt Laricy, Agent, Chicago, IL
Sun Aug 12, 2012
Its negotiable. I would speak with your agent. I would still only take the agreed 1 month rent.
1 vote
Debra (Debbi…, Agent, Livingston, NJ
Sun Aug 12, 2012
That depends on the listing agreement.....and the agents involved with the transaction.

What does the listing state in regard to what you, as the tenant, will have to pay?
It should be stipulated in advance.

Personally, I don't look for another commission if the lease is extended, nor do I expect 2 commissions if it is a 2 year lease..........it's expensive enough for a tenant to come up with the commission, the first month's rent and the security deposit all at once, in advance of moving in (in my area we get 1.5 month's rent as security).

I see rentals as more of an accommodation, as my business is really based on sales and listings, so I am happy to help get someone settled in a new home.

What the expectation is in your area may be entirely diffrent.
1 vote
Andy Ogorzaly, Agent, Chicago, IL
Mon Aug 20, 2012
If they renewed after the fact, then you probably don't owe your agent anymore money. However, if this is during the negotiation process and the listing agreement talks about pro ration, then yes you probably may owe more than 1 months rent. Just remember open and honest communication with your is the best way to resolve issues like this.
0 votes
Sohail Salah…, Agent, Chicago, IL
Fri Aug 17, 2012
Usually it's prorated by the month, however it all depends on the listing agreement.

Sohail A. Salahuddin | Broker Associate | Visionary

Innovative Property Consultants Team | Sales and Leasing

Jameson Sotheby’s International Realty

425 W. North Ave. | Chicago, IL 60610 


O: 312.335.3230 | C: 312.437.7799 | F: 847.805.6030

http://www.innovativepropertyconsultants.com

"Locally Known, Globally Recognized"
0 votes
Debra (Debbi…, Agent, Livingston, NJ
Mon Aug 13, 2012
Lara - who is responsible for paying the commission?
0 votes
the tenant, me.
Flag Mon Aug 13, 2012
Joe Schiller, Agent, Chicago, IL
Mon Aug 13, 2012
pro rate and the renter can pay a fee also
0 votes
Debra (Debbi…, Agent, Livingston, NJ
Sun Aug 12, 2012
"I don't know many Landords who are willing to pay more than one month's commission in this market,..."


In my market, the tenant pays the commission!
0 votes
Sarah Ziehr, Agent, Chicago, IL
Sun Aug 12, 2012
As an agent its in your interest to get your clients the best deal, not worry about extra commission on a longer lease.

Also, I don't know many Landords who are willing to pay more than one month's commission in this market, so if you want the deal to go through I think pursuing more $ will be a waste of your time.

Good luck!
0 votes
My Chicago A…, , Chicago, IL
Sun Aug 12, 2012
Depends on your agreement with unit owner - often 1 1/2 months for 2 year lease.
0 votes
My Chicago A…, , Chicago, IL
Sun Aug 12, 2012
Depends on your agreement with unit owner - often 1.5 months
0 votes
Philip Sencer, Agent, Chicago, IL
Sun Aug 12, 2012
yes, you just need to read the listing agreement, but I would not pay more than 1 mo commission, particularly if the tenants want to extend the lease at some point after the initial lease has been signed. If they want to renew the lease for a 2nd year the agent(s) get nothing.
0 votes
Laura Feghali, Agent, Stamford, CT
Sun Aug 12, 2012
Hello Lara,
It should be written into your rental listing agreement regarding what commission should be paid if the rental period exceeds the time frame on the original lease. Every real estate agency treats this differently so I suggest inquiring with your agent about it.

Good luck!

Laura Feghali
Prudential Connecticut Realty
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more