How much commission do agents in SA charge?
Rental mandates are the source of a rental agent’s livelihood, it determines the agent’s duties and importantly the commission payable. While rental mandates fall into two common categories: “place the tenant only” or “place the tenant and manage the property”, the commission charged varies widely.
The TPN Commission Survey results are in: rental mandates to “place the tenant only” indicate some agents take home as little as 1% while others comfortably charge 15%.
The commission of rental mandates to “place the tenant and manage the property” are structured either as:
- An upfront placement commission and then monthly management commission; or
- A monthly management commission (which includes the placement commission) and this commission combination kicks off in the single digits at 5.5% pushing up to 27.06%.
As a side note, given the increasing number of tenants who cancel their leases early, the rental agents who charge a placement commission in addition to the monthly management commission are protecting their payment for work performed, as they are able to charge the pro-rata cost of the placement commission onto the tenant for the early cancellation as part of the reasonable penalty to find a replacement tenant.
Click here for the Commission Survey Results for the lows, the highs and the average commission.
Vacancy Survey 2023 Q3
The demand for residential rental property remains strong. Vacancies have declined nationally to 6.76% in the third quarter of 2023, the lowest since 2017. Despite a constrained economy, tenants have continued to meet their rental obligations with te…