Broker protection - Tenant Rep Exclusive Agreements
Hi All,

I saw a post about broker protection earlier. I know with listings you get a listing agreement, but tenant rep exclusives seem harder for me to get. 

What are your thoughts on exclusives? Do you push for them? How do you sell them if someone pushes back on signing up with you, or do you just drop them if they won't commit?  It almost seems like a paradox where the people that seem the most squirrely are the least likely to sign.

This might vary agent to agent - for example, I am only just over 3 years in the business and not a "veteran" by any means, meaning I don't think my time is quite as valuable as my boss who has been doing this for 25 years. Of course, I don't like wasting time with someone running me around with other brokers so I try to smoke it out up front by asking if they are already working with a broker. 

Thanks.
[{"id": "h16a6ls", "text": "I Keep them in my file but don't invest much time. Unless it's a legit business looking for a site ( owner occupant) and they've met and trust you I don't think they'll sign anyway.", "replies": [{"id": "h17qp3r", "text": "In my 14 years, I have never once made anyone sign an exclusive for tenant rep and I never would...", "replies": [{"id": "h1a0lcw", "text": "Curious on this.  I've been in business 14 years and do tenant rep and I have the exact opposite approach.  Maybe different markets or something else nuanced I'm missing but otherwise don't get this.  Would be great to hear your reasons.", "replies": [{"id": "h1bgi1x", "text": "3 of my main clients are fortune 50 companies and 2 others that are fortune 100 and a handful that are fortune 500.  We are in a niche, mid-major market.  I do a massive amount of tenant rep work and try to avoid LL rep at all costs.  I've worked with a majority of these guys for well over 8 years.  Also, I have a ton of referrals from other cities where these major companies are also located.  I might be an outlier, I dunno.  Would love to hear your reason as well?", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "h16nfa7", "text": "I try to be upfront as possible when meeting a potential client for the first time. I'll ask if they are represented in order to avoid conflict. I conduct a comprehensive needs analysis with the goal of building rapport and as you know this takes time. I try to target businesses that have multiple locations that understand the process. Most leasing agents I know say they don't ask for exclusives for mom and pops but I'll ask for it if I see myself doing multiple locations for the client. If you believe in the brand you are representing and see yourself working with for the long haul then ask for it. Regarding mom and pops, believe it or not, they may not understand what a rep agreement is and continue to find sites on their own but if you become a trusted adviser and they only want to work with you then they'll be happy to sign. It's a complicated question but stay observant and communicate regularly.", "replies": [], "depth": 1}, {"id": "h16pdd4", "text": "I found it\u2019s good practice to have a rep agreement. That said, if the relationship sours or the client changes their mind, there\u2019s no way to force them to use you in reality.\n\nMany years ago a firm I was with had a client circumvent the exclusive agreement to buy a building - fee was probably just under $100k, so not small but not huge. Firm sued for breach of contract to get the fee, ex-client countersued, was tied up in the legal system for 5yrs, and then finally settled out of court the day before the trial basically at a loss for both parties due to legal fees incurred. The amount of money that has to get spent to enforce the agreement likely far exceeds the monies owed. Still good practice to have a rep agreement, but they are largely worthless beyond the threat of litigation.", "replies": [], "depth": 1}, {"id": "h16r8nl", "text": "Give them as much work and attention as they give you. If they don't want to be exclusive, just send listings/market info passively. If they decide to use you - great. If not, you didn't lose much time on them.", "replies": [], "depth": 1}, {"id": "h16xmoa", "text": "Without an exclusive I\u2019m not going to put a whole lot of work into a deal. I\u2019ve seen it happen before where people put months of work into something and then the client just finds a building on their own and they get nothing. I always push for an exclusive. If I can\u2019t get one and something falls into my lap I might present it to them but I\u2019m not gonna put a whole lot of effort into it without knowing that I\u2019m not gonna get the deal snatched out from underneath me.", "replies": [], "depth": 1}, {"id": "h17omes", "text": "Depends on the scope and presentation of the agreement. I typically use a one page letter format document. If they are unwilling to sign a document that says all you have to do is let me know you are not going to use me before going our separate ways then I know to be on my guard or ask what their concern is to address it.", "replies": [], "depth": 1}, {"id": "h18gdz9", "text": "I've been doing tenant rep since 2007 and haven't ever used one. I do receive notifications from some of the larger brokerages stating they \"exclusively\" represent a specific client, but don't know how it all really works.", "replies": [], "depth": 1}, {"id": "h19uyvk", "text": "If I'm just getting to know the business owner(s), I will sometimes have the group sign the rep agreement linked below. It's quick and can be digitally signed. It also shows me they're committed to me. However, as people said below, most of the time, people who work with you already have a level of trust and these agreements are useful 15% of the time.\n\nhttps://docs.google.com/document/d/1w4nwfOf3log6Vjg0Fs3zjV3FhoMhk-BHym0aKPVjl1Q/edit?usp=sharing", "replies": [], "depth": 1}, {"id": "h1a0bs4", "text": "Who are these companies/people?  Don't take this wrong way but I think you need to level up the companies you are chasing.\n\nI am tenant rep, run a boutique shop and won't work with someone if they won't sign an engagement agreement.  I'd think through the reasons they are providing you and be ready to counter as I truly do not believe it is in any tenants best interest to try to work with multiple brokers and you should be ready and able to help them understand this.  Some quick points to the business that won't sign: If you are only partially committing to a broker, that is exactly the level of service they will provide you in return, so think about that.  Be clear in stating the commitment you will make to them and service you will provide, also I find it helpful that our engagement agreement states clearly our fiduciary to the tenant and it is a service agreement that can be cancelled at any time if we are not providing the service promised/expected.  Another point:  If they have multiple brokers making inquiries on their behalf, what will the seller or Landlord/LL rep think?  They won't know who can truly speak for the tenant and will not take you seriously... they see this as someone kicking tires, which it may be(see point above about leveling up prospects).\n\nIn short, if they don't see the value of you providing exclusive service, they are either not the right client or you need to do a better job selling and demonstrating your value.  Either way, value your time and expertise more and make this clear in the way you approach business.", "replies": [], "depth": 1}, {"id": "h1a0c60", "text": "Who are these companies/people?  Don't take this wrong way but I think you need to level up the companies you are chasing.\n\nI am tenant rep, run a boutique shop and won't work with someone if they won't sign an engagement agreement.  I'd think through the reasons they are providing you and be ready to counter as I truly do not believe it is in any tenants best interest to try to work with multiple brokers and you should be ready and able to help them understand this.  Some quick points to the business that won't sign: If you are only partially committing to a broker, that is exactly the level of service they will provide you in return, so think about that.  Be clear in stating the commitment you will make to them and service you will provide, also I find it helpful that our engagement agreement states clearly our fiduciary to the tenant and it is a service agreement that can be cancelled at any time if we are not providing the service promised/expected.  Another point:  If they have multiple brokers making inquiries on their behalf, what will the seller or Landlord/LL rep think?  They won't know who can truly speak for the tenant and will not take you seriously... they see this as someone kicking tires, which it may be(see point above about leveling up prospects).\n\nIn short, if they don't see the value of you providing exclusive service, they are either not the right client or you need to do a better job selling and demonstrating your value.  Either way, value your time and expertise more and make this clear in the way you approach business.", "replies": [], "depth": 1}]