Frequently Asked Questions:
How does the broker get paid?
Upon execution of a lease by both landlord and tenant, in most cases the landlord pays 50 % of the real estate agentís commission and upon move Ėin by the tenant, the landlord pays the remaining 50 %. Donít be misled into thinking that if you work directly with the landlord you can eliminate the tenant broker commission and reduce your rent. The landlordís agent in this direct situation receives twice the commission he or she would have received if a tenant broker had been involved and you are left without a representative sitting on your side of the table. If you donít use a tenant broker, you have effectively doubled the landlord agentís commission and left your company without a trusted adviser.
How do you calculate the commission?
The commission paid is based on a percent of the gross rental proceeds stated in the lease to be paid over the lease term. The percentage in Houston is 4% and in Dallas/ Fort Worth/Arlington, the percentage is 4.5 %. ď THESE COMMISSIONS ARE BUILT INTO YOUR LEASE RATE; THEREFORE, YOU PAY FOR A BROKER WHETHER YOU USE ONE OR NOT.Ē From Texas Lawyer, March 2000.