Leasing commissions

Leasing commissions are payments tied to signing a new lease or renewal, often paid to an internal leasing employee, manager, broker, or agent after the lease is completed. In multifamily operations, they are typically treated as an operating compensation or administrative cost rather than rent revenue. Some centralized operating models replace individual lease commissions with bonuses tied to broader community or portfolio performance.

A community leases 12 apartments in May. Under a commission model, the onsite leasing team may receive a set payment for each signed lease; under a centralized model, the team may instead earn a monthly bonus based on occupancy, response-time goals, and resident satisfaction.

Leasing commissions affect payroll planning, property operating expenses, and team incentives. Operations leaders need to decide whether commissions encourage the right behaviors, especially when leasing work is shared across onsite teams, central teams, and digital channels.