Delivering the Unexpected in Commercial Real Estate
Protection for the Term of Your Lease
The Agreement
The typical relationship between a tenant/user and their commercial broker starts and ends with a transaction.
Not so when you engage IN/House.
IN/House’s full range of services is clearly outlined in our Authorization to Engage Services Agreement (the "Agreement"). Under the terms of the Agreement, our clients are assured our services are ongoing and continue for the full term of the lease.
There is no cost to our clients for these extra services. Fees are generated by the standard commission paid by the Landlord to their listing broker who then pays IN/House a portion of that fee. To IN/House, that fee represents a "retainer" for all the work they do before, during and after the transaction. (See "Fee" below)
IN/House is always there for you to protect you and stand up for your rights as a tenant. In addition, clients execute the State required 2079 Disclosure form recognizing as well, that IN/House EXCLUSIVELY represents you as a tenant and never the landlord.
Wouldn't you rather be spending your time conducting YOUR business? Even if you have real estate expertise time spent away from your core business can be costly.
Fees
Upon completion of a transaction, the broker representing the landlord (in a sale it is slightly different) is paid a commission which is based on a percentage of the value of the lease. If the tenant is represented by a different broker, as it should be, the listing agent pays the tenant’s broker a portion of the fee. It is a one time payment typically based on a fixed formula of a percentage of the lease/sale value or connected to the total square footage such as "X" dollars per square foot per year. This is dictated by the local market.
Rather than a one time payment for services rendered for assisting in a transaction, IN/House’s view of that fee earned is quite different. We look at the fee as an advanced payment for services to be provided as well as services offered during the planning stages and particularly administration after the transaction is completed. Although the landlord pays the fee and you have no initial or additional direct out of pocket costs, it is the lease transaction that funds the commission.
Shouldn’t you expect to get value for your money?
The Agreement further establishes that IN/House is your agent and not an agent for any present or future landlord thus eliminating actual or perceived conflict of interest as may be the case where a listing agent represents the landlord while also implying they are negotiating “on your behalf.” This was developed long before CA SB1171 required ALL commercial brokers in California to disclose in writing which party they represented.
Transactions go smoother and results are more favorable to our clients. Issues that arise from time to time during a real estate cycle, even after the transactions are completed, are directed to IN/House and handled on our clients behalf in an efficient and professional manner.
All landlords and their agents understand that IN/House is your contact point for any proposals or other matters related to potential transactions or any real estate matters including auditing pass through expenses. Following the completion of the transaction we continue to interface with your property manager and follow-up with him or her as issues arise even after you begin to occupy your premises. In most cases the property managers add our contact to their general tenant email distribution list so we can best track ALL events that might impact our clients.
