Renting an office space brings many advantages, but usually also raises questions that may not always be answered with a quick Google search. That's why there are tips here on the topic of renting - straight from our experts. Today: The Commission
When is a commission due?
A broker's commission is only due upon conclusion of the rental agreement.
If there is no agreement between the tenant and the landlord, the broker is not entitled to a commission or reimbursement of expenses.How do commission, broker's commission, brokerage fee, and broker's fee differ?
Not at all. All terms refer to one and the same thing.
Who pays the commission?
For residential properties, the principle of the commissioning party has applied since June 1, 2015. This means that the commission is paid by the person who commissions the broker.
This regulation does not apply to commercial properties. The commission is freely negotiable but is traditionally borne by the landlord. However, in particularly sought-after areas, it may happen that the tenant is also required to pay the commission.
How much is the commission?
The amount of the commission is freely negotiable. In general, 3 net cold rents are charged, often plus value-added tax.
If the tenant is required to pay the commission directly, a clear note can be found in the advertisement, the exposé, or at least in the general terms and conditions. Therefore, when searching for office space, it is advisable to pay attention to whether a space is commission-free or subject to commission. If the mediation is subject to commission, a commission is due. This is also valid without a specific contract.
On the other hand, the broker must prove that a successful mediation has taken place through his activities. The broker has also successfully mediated if he does not conclude the actual rental agreement with the client himself but with a person who is closely related to the client either by family ties (spouse, child, parents) or by corporate ties (manager of a GmbH).
Tip:
For startups, a broker's commission can be a significant sum. If you still want a commissionable office property, you can always try to negotiate with the broker to pay the commission in installments, for example.
Questions about commercial renting? Send us an email!
See also:
Q&A The Kaution
