Renewal Commision?
Hello fellow investors, I've been lurking on this forum for quite some time and this would be my first post. I've self managed my own commercial retail properties for years but recently came across managing a family members commercial retail property. The question that comes into play is renewal for tenants, if and what percentage of commission should be applied? As I mentioned previously, since I've never hired a property manager I did not realize a commission were applicable for renewals. I asked a fellow investor I'm acquainted with concerning this subject, he informed me that renewal commission could be pass through triple net tenants under management. He also informed me he generally gives one month of rent for commission, with two months for longer leases as oppose to percentages. Any investor or CPM's that could give me guidance, I'd greatly appreciate it! I'm based in Texas.