So i'm hopefully going to get to market leases for 12 units a client has. He's cool with taking the first months rent for each unit but not paying a residual fee.. My broker basically says we need to do 10 percent of the 5 year lease.. So here's the formula. Let's say each units rent over 5 years is 90,0000 times 12 units is $1,080,000. Our 10 percent fee would be $108,000 to market and maintain full occupancy. When you look at it the way he wanted to do it which would be the first months rent for each unit and that's it, it would be a total fee $18,500 which is only .017 percent over 5 years.
I'm afraid my cleint may not accept this fee but it does seem reasonable.. Any thoughts on this or suggestions as to how to present my fee in a convincing way?

IF you are maintaining occupancy for five years, 10% is reasonable although I've seen 8% and as low as 5% for residential. I would make a few phone calls and make sure 10% is the market rate for your area. $18,500 is laughable for 5 years work.

As far as presentation, you have to stress the value of your service and perhaps outline how it would be more expensive for him to do it himself considering the time involved. Talk about your huge database of potential lessees.

Your Broker has said where you need to be and it is up to you to sell those numbers. Call and compare other units to show for comparison. You need to not only sell the dollars but also the time involved if the client attempts to do this one his own. Your broker may get a discounted ad rate. Find out what the general ad rate is for the local paper and make sure you use these higher figures in your presentation.

Your client is trying to take advantage of your inexperience in this area.

Thanks a lot. You're both right and I really appreciate your feedback!!