Commissions on rentals by a real estate company or agent

Hi

I have a real estate agent that is interesting providing me clients for a coworking desk room (2X2 square meter cubicle) based on several months

Is it legal? how much percent per month can I give him? My space subscription is about 250USD /month. (ex: 10% will mean $25,00 per month commission).

Thank you.

Hi, Steve,

Whether it is legal or not will depend on where you are, laws very substantially. But in principle I can’t think of any reason it would not be.

Within the network of coworking spaces I operate, we generally pay the first month’s rent for new signups; but this assumes a longer term relationship. I would think hard about how to bring the new folks into the space, temporary coworkers have caused issues at many coworking spaces. Not to say itś a bad idea but I would think about how to handle it beforehand.

Cheers,

Jeannine

···

On Friday, October 26, 2018 at 2:47:05 AM UTC+2, Steve Suard wrote:

Hi

I have a real estate agent that is interesting providing me clients for a coworking desk room (2X2 square meter cubicle) based on several months

Is it legal? how much percent per month can I give him? My space subscription is about 250USD /month. (ex: 10% will mean $25,00 per month commission).

Thank you.

Industry standard seems to be 10% commission of the initial contract, up to the first 12 months. Some prepay those 12 mos of commission; others pay 10% per month paid.

JEROME CHANG

talk to us: (323) 330-9505

chat w/ us: http://www.BLANKSPACES.com/chat

Santa Monica | Culver City | Downtown LA |Pasadena

OPENING THIS DEC 2018: Larchmont

OPENING THIS JAN 2019: Long Beach

···

On Oct 26, 2018, at 2:59 AM, Jeannine van der Linden [email protected] wrote:

Hi, Steve,

Whether it is legal or not will depend on where you are, laws very substantially. But in principle I can’t think of any reason it would not be.

Within the network of coworking spaces I operate, we generally pay the first month’s rent for new signups; but this assumes a longer term relationship. I would think hard about how to bring the new folks into the space, temporary coworkers have caused issues at many coworking spaces. Not to say itś a bad idea but I would think about how to handle it beforehand.

Cheers,

Jeannine

On Friday, October 26, 2018 at 2:47:05 AM UTC+2, Steve Suard wrote:

Hi

I have a real estate agent that is interesting providing me clients for a coworking desk room (2X2 square meter cubicle) based on several months

Is it legal? how much percent per month can I give him? My space subscription is about 250USD /month. (ex: 10% will mean $25,00 per month commission).

Thank you.

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Hi Steve,

Other things to keep in mind:
- will you pay comission on all your products
- is there a minimum term the prospect needs to sogn up for
- will you pay the broker when the tenant renews/renegotiates/expands
- who will you grant the comission when 2 brokers sent you the same prospect - typically it would be the broker who succesfully got the tenant to tour the space

Typically you would put together an infopack with your product/pricing/inventory and fee structure to send out to brokers.