A Common Question in the Real Estate World

Having been in the Real Estate Business for over 40 years, I have heard many questions regarding the fees we charge for our services. These fees are referred to as commissions or professional fees. One question I heard recently from a Southwest Florida potential client was; “I’m a little confused here. ­I’m paying you 3 years in advance at 6% and exactly what services do you offer during the lease period­” My response was candid and was not to be meant or taken as rude in any way. Fortunately the potential client understood and appreciated my response.

My response was as follows:

Dear Client,

If my job is done correctly there is nothing for me to do during the lease period. I will outline the reasoning for my statement.

­

Pre-Listing Services:

  • Our job begins with evaluating your objectives and desired outcomes.
  • We work with you to determine your desired financial outcome.
  • We evaluate your property and price it competitively for the marketplace as well as aligning pricing with your needs and desires.
  • We “Target Market” tenants and uses that would enhance and bring value to the neighboring tenants and uses.
  • We investigate if the potential tenant needs approval of any outside agency or association.
  • We investigate the allowable uses under the property’s current zoning.

­

Marketing and Promotion of Property:

  • We list the property through the Multiple Listing Service and various Commercial Websites to expose the property to the Commercial arena.
  • We prepare flyers for distribution to area Brokers and associates of the Sunstar Company.
  • We identify possible tenants that we are presently working with to match location, price, size and usage needed in the marketplace.
  • We position a sign or appropriate advertising on the property, in compliance with the local government or association codes and restrictions.
  • We coordinate advertising and inform the local Brokerage community of the availability and pricing of your property.
  • We educate the Brokerage community of any special conditions or restrictions regarding the property.
  • We encourage fellow professionals to assist in locating a possible tenant for the property.
  • We inform fellow real estate professionals of the cooperative commission policy of our firm.
  • ­Additionally we inform the brokerage community of any incentives or bonus commissions that might be offered to them for assisting in the leasing of the property.
  • We field inquiries on the property from advertising and drive-by traffic and attempt to pre-qualify the prospective tenant.
  • We arrange showings of the property to the inquiries and attend follow-up showings of the property, often may times.

­

Management of the Leasing Process:

  • We author a Letter of Intent (LOI) when a prospective tenant wishes to make an offer to lease the property.
  • We negotiate on your behalf with the prospective tenant keeping your best interest in mind throughout the negotiation.
  • We provide the executed LOI to your attorney or designee to prepare the lease agreement.
  • We are not allowed to draft a lease documents according the Laws of the State of Florida.
  • We review the lease documents the make sure the terms are consistent with the agreed terms of the LOI.
  • We present the lease agreement to the tenant and respond to questions or concerns of the tenant.
  • We handle the execution of the lease documents and return them for your signature.
  • We distribute the fully executed documents to the parties of the agreement.
  • Once the lease agreement is signed it becomes a valid and enforceable legal contract between you and the tenant.

­

Post Leasing Activities:

  • We generally publish a press release to announce the tenant to the community and notify the Broker community of the lease.
  • We collect our fee after the lease is signed and you enter an enforceable contractual relationship with the tenant. This contract can be enforced in a court of law.
  • We do not charge additional fees upon renewal of the lease in this case. The renewal terms are part of the original lease.

­

My Port Charlotte, Florida client responded to my e-mail and asked me to meet her and pick up the keys to the building. I believe that the Real Estate industry needs to police itself and provide professional representation for the fees we charge our clients.

­

Seach Commercial Listings North Port Florida!

­

­

­

­

Tags