Splitting Commissions with Rental Brokers?
Started by Mel
almost 18 years ago
Posts: 126
Member since: Jan 2008
Discussion about
I am a licensed broker (not an agent, etc.) but I do not broker for a living. My wife and I are looking for a rental apt. Let's say we find a rental apt. on this web site and we make an appointment to view it with the listing broker. If we want to lease the unit, is there any scenario in which I could share in the rental broker's commission? One such scenario is if my wife signs the lease but I do not. Thus, I would be the procuring broker, and the listing broker might possibly be willing to split the commission or simply reduce her commission accordingly. Obviously any such arrangement would have to be worked out before viewing the apartment, but does anyone have any thoughts on how I might be able to split or reduce a rental broker's commision? Thanks.
Just be upfront and let them know that you are a licensed broker with yourself as a customer :-) There should not be any problem as long as you are honest and let them know off the bat. These things don't need to be complicated. I am a broker and I rented an apartment a few years back in just this way. By the way the next apt I rented was an owner pay apartment and I actually got the commission for myself! (Not all owner-pay buildings will do the latter though)
Thanks for the tips, nyg.
Just to be clear, there is really no point in "splitting" a commission that you yourself are paying. So are you telling me that you paid the rental listing broker one half her normal commission? I'm not sure I follow.
Yes, I paid 1/2 of the normal commission. Sorry I didn't clarify. Clearly I need more coffee :-)
Interesting. In that case, this is really no different from finding a listing broker who is willing to reduce her normal commission by half. The fact that you and I are brokers doesn't really matter because if a rental listing broker is not willing to settle for, say, a 7% commission, then our broker's license is irrelevant because we will not get the lease to sign. Or am I missing something?
Well it is a great deal easier and far more pleasant to have the listing broker agree based on the fact that we are brokers (and thus are "cobroking") rather than do a whole back and forth fee negotiation. In my opinion any reputable listing rental broker should be fine with this--their job is to rent the unit and 99 times out of 100 the deal they do is a cobroke anyway.
Got it. Thanks again for your help, nyg. Much appreciated.