Leasing Bonus Plan 2010

With owners tightening down on expense and cutting back, I like to poll members as to what your bonus plan is and hourly wage for experienced leasing agents on your property as I consider them a sales driven employee. Lately, I have seen many employment ads peg them as only administrative office help.But that is another topic.:unsure:

The average in Orlando seems to be $10-$12.00 hr + $50 for all new leases and $50 for 7 month renewal and $75 for a 12-14 renewal. Some properties offer target units with bonus added money on less desirable apts or hard to lease units.

Renewals Bonus Plan? How do you pay your maintenance team members?

Thanks for your input-trying to see industry standards.

Here's the J.C. Hart plan:

New Leasing Commission is .75% of the total value of the lease (we offer 2-15 month leases so this works best as it's based off of income generated for the property). For example, a 12 month lease at $1,000/mo. or $12,000 for the lease term would be a $90 commission. The commission goes to the 1st person to show the apartment or is sometimes split for corporate leases.

Renewals Bonuses are calculated with the same percentage and based on the total value of the lease. These dollars go into a Renewal Bonus Pool of which 75% is split among the leasing team and 25% among the maintenance team.

All managers, assistants, and leasing consultants are expected to lease apartments and work every other weekend. Everyone has the same opportunity for these commissions and bonuses.

In the Indianapolis Area we see anywhere from $9-$13 hr. for a leasing consultant/assistant manager level associate.

Our maintenance team also receives a customer satisfaction bonus based off of returned service and move-in surveys (5 question surveys) that are rated all "Excellent".

I don't even want to get into the conversation about leasing consultants being admin. Bottomline, it's time to elevate the game folks. Hire better people, and shockingly you'll get better results. And be sure to train those people well also. No more excuses. Specials don't work!!!

As a salesperson myself, I love the ability to control how much I make. Love the value of the lease concept and have found it works better than any other program to inspire and truly motivate to capture a longer lease term at the highest price. I recommend to all my clients. Thanks for sharing.

Great bonus plan! All too often we see companies incentivizing their staff "backwards" ... "Have too many units available? Give away more rent (specials all over the board) and reward the leasing staff with a higher bonus for giving away the product."

It definately is a better plan to have the community staff (and their compensation) aligned with the goals of ownership.

Also, this is calculated after any concessions are taken off the total lease value. So discounts or concessions impact the commission.

I like that plan and its makes sense. It will definitely separate the rock star sales agent from the mediocre. As a Leasing Manager I want to be valued for more than just getting the lease..but getting the best possible and highest closing sale. Real estate agents make commission by closing on the highest and best deal too for the owner.

We do have to be sure that agents offer every prospect equally the same deal daily to avoid fair housing issues. I am definitely going to refer the plan to my company. We have been trying to select a new plan that is fair to all and has inclusion for maintenance that really seeks to inspire them as well to keep up excellent and timely customer service all year to impact renewals and living experiences.Thank you for responding.This is a fairly big cost area depending on the size of your community and staff.

I pay a minimum of $12.50 but will go as high as $14.50 for a great Leasing person. I love giving the maintenance team part of the renewal commission. At my current property the company is not on board with that - yet. Leasing consultants work weekends, but my Leasing Manager generally does not.

I asked for an update to this question to bring it up to 2012, and got the following responses. (I've removed names as I haven't gotten permission to share.)

• We do $25 for 6 mo and $35 for 12 mo. Leases and renewals. delinquency bonus between $200-$500
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• $50 for renewal, 40 for lease, 12 month, 1/2 for 6 month.
  Cambria, your incentivizing them to do 6 mo renewals
• Amanda Moomey - $50 starting bonus per lease over 3 months. $25 per renewal then up to $50 after 60% are renewed. quarterly revenue and expenses bonus varies on budgeted amounts
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• $50 for new lease and $75 for renewal
• ‎$50 for a 6 month lease and $100 for a 12 month lease and it is the same for renewals. $25 for 3 month leases also.
• We have $50 a lease and $50 renewal.
• We have $300 per net lease that goes into a pot and is divided up by percentage among the entire staff minus the mgr who may or may not get a quarterly bonus. In my over 30 yrs in business I feel this is very good and takes care of everyone on a conventional community. The only flaw is it doesn't really properly address renewals. After property is 97 percent occupied it goes to a 3 per unit in a pot to be divided
• On a student community the best bonus structure I have seen was named "there is no I in team". Depending on community size and budget so much money went into a pot per lease rented during lease up in sept after move ins that pot was divided up with percentage breakdown by mgrs. Key personnel in office 50 percent. Part time leasing 25 percent. Service team 25 percent the reason for waiting until after turn was so that all parties employed including part time would remain through turn and carry over into next month when paperwork and everything else is so critical.

I have a property that is struggling and I don't feel that the current bonus program gives enough of an incentive for my leasing staff to take it to the next level. I'm actually working on a program that is tiered based on how many move ins occur in a month to push the staff more. It was also enable me to tie the bonus into the monthly goals.