Multifamily - Broker's Commission on Rentals
For the multifamily folks out there, have you experienced a situation where a property with a full-time manager/leasing office would pay a brokers commission for finding a tenant?  Unsolicited, a broker brings a tenant to a property that one could publicly contact through their PM website and lease a unit.  Broker demands a fee from the landlord.  It would seem like it's one or the other, right?  Either you pay a PM/Leasing person to do it, or you pay brokers to find you tenants.  It seems like doing both is a waste of money, no? 

Thanks.
[{"id": "fsrvege", "text": "Unsolicited?", "replies": [{"id": "fsrz9x5", "text": "Yes, as in a broker brings a tenant to the PM with the expectation of getting a month's rent as fee.  The owner isn't asking brokers to find them tenants.  It's not something that is typical where I am and I wanted to check if this was common elsewhere.  Thanks.", "replies": [{"id": "fst52iu", "text": "Bake the commission into the deal or reject the offer.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fsrvwyo", "text": "Do you want the tenant or don't you?", "replies": [{"id": "fsrzeda", "text": "That's not the question, but I appreciate your response.  This question is more theoretical and the basis of a dispute I'm working on.  Thanks.", "replies": [{"id": "fsso6eq", "text": "What's your dispute?", "replies": [{"id": "fssy6o4", "text": "It\u2019s not relevant to the question.", "replies": [], "depth": 4}], "depth": 3}, {"id": "fst8ikn", "text": "I would pay it.  Specifically if the manager agreed to it.  \n\nPs I\u2019m an owner.  If times were that tough that I would piss off a lead generator I\u2019m in the wrong business.", "replies": [{"id": "fst9lz4", "text": "Understood.  Makes sense.  Thanks!", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fsrwgnm", "text": "I am a small owner/operator in Connecticut.  I work with the 2 top renters realtors in the area.   Over the years what I have heard from them is that the larger operators will need to agree to this ahead of time and will give them $1000.00 as commision for a rental.  However, they have to have come to an agreement first.  The internal staff who work in these organizations get salaries and then a commision on top of that so it get awkward.  But they do do that.", "replies": [{"id": "fsrz2a3", "text": "Thanks.  That's in line with my mind.  I wanted a double check.  I'm in MA and this is a property that has a full time leasing office and robust website.  Thanks again.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fss2crn", "text": "I work for an institutional shop. My office covers a few markers and for multi it really just depends on the local market and sometimes even the sub market. I\u2019ve seen ones where you need to pay locator fees to get the good tenants. Other places, tenant pays the brokers themselves. In a few markets, our property managers just tell these guys to pound sand", "replies": [{"id": "fss37zs", "text": "Thanks.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fss2en1", "text": "Often the leasing agent ask the agent to request from renters. In this area, the leasing agent does not get paid and most people do not realize it.", "replies": [], "depth": 1}, {"id": "fssotya", "text": "If they would pay, it would be 1/2 months rent not a full month. Landlord listing with an agent would pay a full month which would then get split with co-op broker. In your scenario, the landlord is already represented and might pay a 1/2 month to a renters agent. Kind of like a FSBO would still pay a broker commission. \n\nI have 6 rental units. When I just list them myself for rent I will pay a 1/2 month commission if anyone is working with an agent. Rarely happens but I will.", "replies": [], "depth": 1}, {"id": "ftdo257", "text": "Is this a NY thing? I think I heard about that somewhere.  \n\n\nWe have never been approached by a broker to help place a tenant in our apartment communities. That said, we sign PM agreements that include leasing provisions so it's our PMs job to lease vacant units. These are Class C+/B workforce housing properties all over the country and not luxury, so perhaps it's different in Class A urban.", "replies": [], "depth": 1}]