I had 3 high end rental listings from 1 client. It has taken approximately 3 months to get 1 rented after 2 offers from 2 different tenants in a period of approximately 2 weeks (lots of 2s there). We have had 2 offers on the second and had to temporarily status the other (the client was refinancing it).
The first rental was listed at $5k per month (this was after we lowered it from his original asking of $6k per month). We brought a low ball offer to him of $4k per month but for 2 years. There was some back and forth countering and it stopped at $4.5k per month by the owner. We had both sides of this transaction – there was not any other Realtor involved. The owner asked for a “favor”. Would we take our commission for the 2 years half now and half next year on the anniversary date? I advised him that we would in this specific case because we had both sides of this transaction.
Move forward 2 weeks. The original tenant does not accept the final counter by the owner of $4.5k per month. We are presented with another offer from a Realtor for full price at $5k per month. Everything is great and all the contracts are signed. I sent the owner an email detailing everything including the fact that in this case we would not be able to break the commission in 2 payments whereas there is a cooperating Realtor in this transaction. I know he receives his email because he addressed other issues that were contained in the emails.
Move forward 2 more weeks. The client calls me and wants to make certain that we would only be collecting 1 year’s rent upfront and the remaining commission next year on the anniversary. I explained that I had emailed him on this topic 2 weeks ago but he now claims non-receipt. I explained why I could or would not be doing that in this specific case and why I had agreed to it in the original offer. He became very agitated and demanding that he is demanding that we do it this way. I carefully explained to him that the listing agreement calls for payment on the vale of the lease. This was a 2 year lease and not a 1 year lease with a 1 year option. I advised him that I needed to pay the other Realtor based on that fact. Should I have given in to his demands I would not make anything until next year – provided he even paid it.
I refused to honor his demand. He advised me that unless we would accept these terms that I was to cancel these other rental listings. He further suggested that if I could “prove” to him that there was another Realtor that he would agree to pay them their full commission and I would have to split my payments. What a nerve - not a chance this was going to happen. This client is very well healed and does not have any financial concerns.
I simply once again refused to accept these terms and agreed to cancel the listings via a conditional withdrawal at no charge. Wait until he tries to relist J
What would any of you have done? I’m curious to learn how others would have handled such a one sided demand.