0
As with many other things, the commission paid by a lessee (someone renting space) to a leasing agent is negotiable. In New York, for example, people renting apartments pay agents to find them a place and the landlords don’t pay a thing. In other parts of the country, the landlord pays the commission. That being said, most commercial landlords who offer their space for rent through commercial leasing agents provide for a commission for cooperating agents, much like the case of residential real estate. The commission arrangements are provided for in the listing agreement the landlord has with his agent/broker and the amount of “cooperation” for the renter’s agent/broker is spelled out.
That being said, there are probably a number of landlords out there who offer space for rent on their own or offer it for rent through an agent with a commission less than the “going rate” in the community. A lessee’s agent (if they know what they’re doing) should be aware of this eventuality and provide for it up front. So, to get right to the point of your question, there’s nothing wrong with the renter being asked to pay all or part of a commission (after all, the agent doesn’t work for free) as long as the agreement with the agent spells it out and it is agreed to by both sides.
There’s a parallel in residential real estate. A buyer’s agent who has his clients sign a brokerage agreement will usually provide that they will be paid whatever the “cooperating commission” is. However, to provide for cases where their client likes a FSBO where the seller isn’t willing to pay a commission, I have seen some agents ask, and get, an agreement, that provides for the payment of a certain percentage of the purchase price, with the buyer getting credit towards that percentage from the “cooperating commission.”
Yes, it is ok and not unethical for the agent to request you to cover the difference on the commission although it is very Un-common to do so.
However, the enforcement of the request is questionable. The way to find out is here:
Look at the commission agreement you signed with the agent. Does it state a specific amount you agreed to pay or does it state that the commission will be determined by the amlount the landlord is offering to pay them for bringing you to them. If it states the latter then the agent has no legal right to enforce payment of the commission from you. If it states that you owe them regardless of the landlord’s commission then you may have trouble not paying it. Most agents realize the commission will only come from the seller/landlord and do not require or expect any funds to come to them from their client so there is a good chance your paperwork will reflect this normality. The only way to be sure is again to review what you have agreed to in writing and take it from there.
I am using a realtor to lease space for my business. The landlord is not paying the full commision and I was asked to pay the difference, Is this ok and ethical?