Policy on agents’ commissions and on viewings
We have the following incentives for brokers and agents who successfully refer us clients:
For rental properties:
- 10% – for non-PRC licensed referrers
- 20% – for PRC-license holders
These commissions will be disbursed in accordance with the following schedule:
- 50% upon move-in of the lessee
- 25% when the lessee is halfway through their lease
- 25% at the end of the lease, subject to proper clearing of the lessee’s account.
The base amount for the above percentage is whatever we (PPE Inc.) collect as our fee per our arrangement with our client property owners (See this for more details).
Over the years, we have encountered several unfortunate agent-referred tenant experiences. Our main issue with referred renters is that we cannot get help or support from the agent who referred them. Most agents (if not all) are nowhere to be found once they have already collected their commissions. This is most especially true during the move-out of the tenants when and where the damages, outstanding bills, and other problems are usually discovered.
It is very seldom for tenants to be problematic during the period of their lease. Most of the problems are only really found when they have moved out.
Since we are managing the properties, we are bound to keep them at their pre-move-in conditions or as close to that as possible. We bear all the staffing costs in attending repairs, maintenance, and other liabilities left by the tenant after they move out.
On the other hand, the agent who referred the tenants to us has already moved on to their next clients, leaving us with the problems of their referral.
This is why we have developed the above policy on referral incentives.
This way, after completion of the lease contract, the agent can get his full commission based on the percentage above. While, we are left with a decent margin to cover the staffing cost to attend all aftersales support needed by the tenant and for restoring the property after they move out.
If you’d like to proceed in collaborating with us, the following are the requirements:
For rental properties, initial viewing will be done by the agent and the prospect lessee themselves, subject to the following:
- Submission of the original PRC license + P500 key deposit. The PRC ID and the P500 will be returned back to the agent once the key of the unit has been returned back to us. The key must be returned by 5PM on the same day.How will the PRC ID and the P500 deposit be returned?
- The agent must coordinate with us the ETA of his client.
- Once agent’s viewing is done, agent must contact our designated field staff.
- Our field staff will get the key and return the PRC ID + P500 after inspecting the property and finding no changes in its condition.
- Complete name of the prospective tenant(s)
- Nature of work or business
- Age of all occupants
- Total number of occupants
For complete list of lease requirements, click here https://ppe.ph/lease-reqts
Important: Some of the buildings have a disinfection fee per viewing. This fee must be settled with the admin first before authorization for the agent and his client will be released. The fee will be shouldered by the agent/his client.
For applicable buildings, we will provide you with the admin’s bank details. The agent/client has to make the deposit or the payment first directly to the building’s account. Then, provide PPE with a copy of the payment slip so that we can forward this slip to the admin. The agent needs to present the payment slip during the viewing to the admin for the official receipt of the payment.
Viewing of agent’s prospective tenants is also one of the aspects that we have to optimize. Previously, agents book their viewings with us and we allocate staff to accompany the viewing. However, in several cases, viewings were cancelled with very short notice. This puts us at a disadvantage since we cannot replace the lost time with another viewing or task for our staff. Sometimes, our staff is already in the area/property when referring agents cancel their viewings. This costs us not only the transportation expenses of our staff but also the lost time for other opportunities.
For sale properties:
50% – for PRC license holders
In sale transactions, non-PRC licensed agents must be represented by a PRC licensed broker.
Memorandum of agreement must be executed upon registration of the client.
Agent’s documentary requirements:
- Completion of client registration form
- Copy of client’s ID
- Copy of proof of address (office/home)
- Copy of PRC license
- Copy of PTR or business registration (SEC/DTI/Mayor’s permit)
All viewings for sale properties are assisted by PPE staff.