› Flat Chat Strata Forum › Rental rants › Dodgy agent issued termination notice › Current Page
I just talked to my acquaintance who’s an agent. He said the industry standard for commission is about 2% of rent, and the standard for signing a new tenant gets you 1 week’s worth of rent.
Assuming weekly rent is $250 per week, that means that having a long term tenant nets you $20 per month in commission while the signing bonus nets you $250…about a year’s worth of commission.
An agent that does the best thing for the owner by signing long term tenants gets much less money than a dodgy one who forces tenants to move out regularly. Not hard to guess what this results in…
One might think that the owner would get suspicious if he notices a high turnover rate for tenants, but most owners probably leave everything to the agent (that’s the whole point of getting the agent in the first place after all) and wouldn’t have the slightest clue who is on their property in the first place.