How Much Does It Cost to
Hire a Tenant Rep Broker?
October 1, 2020 by Julie Becque
It Cost You Nothing to Hire a Tenant Rep Broker.
I always get asked the same question. How much does it cost to use a Tenant Representation Broker? My answer: Free. Zero cost to the tenant.
One would assume with all the service benefits that a tenant rep broker provides that you would have to pay a fee. In commercial real estate lease transactions, tenants don’t typically have to pay anything for using a tenant rep broker. Commercial landlords benefit when tenants lease space in their buildings, and landlords are willing to pay the tenant representative a broker fee in return for bringing them business. Landlords budget for these types of expenses and they are accustomed to paying their listing agent and a tenant rep in most commercial lease deals. Even though a landlord pays the commissions, the tenant representative you hire has a fiduciary responsibility to represent your best interests and maintain confidentiality throughout the transaction. I like to remind my clients that the landlord rep works for the landlord, not for the tenant.
Overall the use of a tenant representation broker is of great value to you, as there is no out of pocket costs for you to use their services. The landlord is paying their listing agent the full commission regardless if a tenant rep is involved or not. So, why not have someone represent your best interests?