Topic: Questions regarding how Leasing Commissions are split

Hey there!

I have a few questions regarding the way Leasing Commissions are typically split and what the 'industry standard' is.

I have just started working with a new company in the Bay Area, (CA). I was told when I interviewed for the Leasing Agent position that the lease commission was $150 per new lease and $100 per renewal, plus a base hourly wage rate of $16.50 per hour. This is for a luxury apartment home complex of about 300 units.

I was hired along with 1 other Leasing Agent and we were both told the same information regarding bonuses/commissions. However, we are now being told that the Leasing commissions are going to be SPLIT between us (2 leasing agents) plus the property manager and assistant property manager... Also, the renewals will be split between 8 of us, including maintenance team (I feel this is normal). So now that I have been told this information I am wondering if the new lease commission being split between leasing agents and PM/assistant PM (4 people) is normal? I have looked through my offer letter which does not specify. Also, it is important to note that the management team does NOT TOUR, nor do they usually write leases for people we tour!

I have 4 years assistant PM experience and I have never heard of management taking a commission split with leasing agents but I wanted to ask before I brought this up with management and/or HR.

Thank you!

Every company is different, but leasing agent commissions are often split with the entire front office team because each person plays a part in the process of taking that prospect to resident status. Making sure the apartment is ready, the screening is approved, the lease is properly prepared, the payment arrangements are handled, etc.

While I agree it should have been more clearly stated in the offer letter, splits allow for minimization of the drama that can happen in an office when people are territorial about commissions. Splits should result in better customer experiences because everyone wants that prospect to become a resident, so everyone is willing to help make that happen - even if you're at lunch when they come in to sign their lease.

Splits are tough if someone is not doing their part, so a great Community Manager will make sure that all team members contribute in the leasing process. Hope that is the case where you are working!

I worked as a Leasing agent in the San Jose area and the only thing that was split was the renewal, it was for a large property with Equity Residential. I feel the splitting is not common with a NEW lease and the only time a commission split was initiated was with a renewal. I don't think it's fair that a new lease should be split with anyone because no one else does the work. $16.50 is average for a leasing agent with minimal experience, however, in CA with your experience you should be making around $18.50. I would like to add I was making $18.50 with 2 years experience in 2003.

We have some communities that split new lease commissions and some that do not. I personally feel that the culture in the office is better if everyone splits the commissions. This is a very common practice.