Normally, agents charge 8% to 10 % of the base annual rental or the 1st month rental for new tenants for leasing fee. Can anyone tell me how much do agents charge the owners for leasing fee for existing tenants who renew a contract/lease (generally speaking)?
(If there are information on the website please provide the link also)thanks [
]Hi Daniel,
Most commercial leases have options for extension of leases.
For example a 3 by 3 lease would be a three year lease with two further options to exend for another three years (totalling nine years).
If a lease is extended there is just some minor legal work, such as a heads of agreement that the lease is extended on the same terms as the existing lease.
However if a lease is terminated and a new one (with a different party) set up, the commercial agents will charge a fee for services rendered.
The lease in such a circumstance is usually drawn up up a lwayer, all the agent does is find a tenant so in that regard it’s a little different to residential property.
Great question though!
Bye,
Steve McKnight
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Further, the agent only charges a fee if he/she finds the new tenant. There is nothing to stop you finding your own tenant ie running the advert and vetting the prospective tenant yourself, and thereby avoiding paying the agent anything. A valuer should be able to ascertain the rental value for less than 1k (commercial), and your lawyer could (and should) help with the lease. In an ideal world the tenant signs up for life, pays for everything, and accepts annual rent reviews – but sometimes you have to be a little flexible to get the ink on the document.
Best of luck, Julian.
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