Q&A Series with Otis Critchley – Is the brokerage for residential property and commercial property different?

Brokerage Residential vs Commercial

The standard brokerage of 1% for re-sale properties charged to both parties and the rental brokerage of 1 to 3 months is the same. However, it is very rare for someone to enter into a residential lease for a lock in period that would generate a brokerage payment of more than one month’s rent whereas commercial leases can stretch beyond ten years. In Mumbai the rental rates are for below 3 years – one month’s brokerage, for less than 5 years – two month’s brokerage and for over 5 years – 3 months brokerage.