Professional Realtors in Danbury, CT

No. In some cases, an owner will lease the property directly. Sometimes, the owner will employ an in-house leasing agent. Typically, these are called open listings, where the owner will pay a full commission to any broker who brings a tenant to the property. An in-house leasing agent is usually paid on a salary basis, so their incentive to enter into a lease is different than from a listing agent who is paid a commission. It is also essential to understand that when you are negotiating with an owner, the terms of your lease take on a much greater importance. The owner is going to receive your entire rent payment, while the listing agent receives only a small percentage as his commission. Also understand that if you hire a tenant rep, there is a possible conflict of interest. He may get paid a full commission on an open listing versus receiving a half commission on a listed property.

The best circumstance to find a space without retaining the services of a tenant rep broker is when you are looking for a small space and/or short-term lease. Generally speaking, since the total lease consideration is small, the commission that will be paid is even smaller. It is hard to find a good broker that is willing to work for a small commission. Remember, it takes the broker just as much time to help you lease 5,000 square feet for five years as it does to lease 1,000 square feet for three years. In addition, the listing agent will usually work harder to lease a small space if the commission does not have to be split.

A representation letter is something a tenant rep broker will ask you to sign. It has several purposes. First and foremost, it demonstrates your commitment. Once the tenant rep broker has that letter from you, they know that are much more likely to get paid a commission on your lease. This means that they will work hard for you. In fact, a good tenant rep broker will not do much more than a simple market survey without a signed letter. If you want to get the most out of the brokerage community, we recommend that you sign an exclusive agreement rather that working with several different agents on a non-exclusive basis.

The best way to get a broker to work for you is to hire them as your exclusive tenant representative. Most brokers have representation letters for you to sign and once they know that you are committed to them, they will work hard for you.