How do the agencies calculate the amount of commission they earn?
The amount of the commission collected by the agency is based upon the amount of the rental and the term of the lease signed. Nevertheless, this has not proved disadvantageous to the client, as the long-term advantages of signing a client far outweigh the losses incurred by negotiating a cheaper rental. Some astute clients come to an arrangement with the agent where the client offers to pay the agents commission if the agent can reduce the monthly rental to an agreed amount. The client can come to a similar arrangement if they wish to have a lease term shorter than the standard 12 months.
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