In Australia, it is quite common for the Landlord to pay a Letting Fee and the amount varies from agency to agency, client to client. Sometimes it is one week’s rent plus GST, sometimes it is 1.5 week’s rent plus GST. It can even be a percentage of the annual income. It depends upon what is negotiated between client and agency.
We also quite often charge a monthly administration fee in addition to this. Some agents call it a Technology Fee - there are a few variations. There is also quite a range - I have seen them as low as $2.20 per month, up to $16.50 per month.
The bonus structure also varies form agency to agency. The person who brings in the new business may receive a portion of the Let Fee, or even the full amount. Other agencies pay a percentage of the annual income, once the property is tenanted. Again, it depends upon what has been negotiated between agency and BDM/PM.
I know this is a big change for the industry in New Zealand and it is going to take a little while for everyone to get their heads around it.
For new business moving forward, I would start to introduce this as soon as possible You will need to practice your dialogue around this. Some of your competitors’ will not charge the Let Fee because it will be simply too hard for them to get their head around - just like they reduce their fees easily too. Your negotiation skills are really going to come into play
For current clients, you may need to be more careful. You are going to need new authorities signed for this and it may be that you start the conversation with owners now but roll it out over the next 12 months in a staggered approach.
The PM’s are going to need training around this, as well as BDM’s. Believing in the value you are providing around the leasing process is the first step.
I am not sure what you mean about the property being let on behalf of another PM - is this within the agency?
Hope this helps a little.