The October 18 Move-In, the Pet Rent, and the Above-Ask Bonus
You lease a 3-bedroom townhome advertised at $2,400/month on a 12-month lease. The owner authorizes: first month's rent plus a $2,400 security deposit at signing, $50/month pet rent for one dog, and a $75 late fee if rent is not received by the 5th. Your brokerage agreement gives the listing side one month's rent as commission, split 60% to you and 40% to your broker, plus a $200 owner-paid bonus if you sign a lease at $2,500 or more. A prospect wants to move in October 18, has one dog, and says: "Drop the pet rent and start the lease at $2,300 and I'll sign today."
1. Prorate the October rent and pet rent and state the total funds due at signing, using actual-days-in-month proration.
Read the worked answer
Days: October 18 through October 31 inclusive = 14 days out of 31.
First month's rent: $2,400 ÷ 31 = $77.4194/day × 14 = $1,083.87
Pet rent (prorated on the same basis - document the choice): $50 ÷ 31 = $1.6129/day × 14 = $22.58
Security deposit: $2,400, collected in full - deposits are not prorated.
Total due at signing: $1,083.87 + $22.58 + $2,400 = $3,506.45
Method matters: the annual method ($2,400 × 12 ÷ 365 = $78.904/day × 14 = $1,104.66) produces about $20.79 more. Both are defensible; the lease must state which one governs, and it must be applied the same way to every resident and to the next partial month. On a 14-month term, the second partial month occurs at the far end of the lease, so pick a method you can administer.
Check the math backward: $77.42 × 14 = $1,083.88, rounding to the cent on the daily rate rather than the total; the lease should specify rounding rules to avoid pennies disputes.
2. The prospect's counteroffer, and the commission if you sign at $2,500: what do you personally receive, when, and is the $200 bonus acceptable?
Read the worked answer
The counter: you are the owner's agent. You may present $2,300 with the pet rent waived, but you cannot accept it. If the owner says no, the authorized terms stand. Do not imply authority you lack - that is the fastest route to a complaint and a lost commission.
Commission at $2,500: gross listing-side commission = one month's rent = $2,500. Split 60/40 → $1,500 to you, $1,000 to your broker. Paid when the lease is signed and funds are collected per the brokerage agreement, not necessarily at move-in.
The $200 bonus: acceptable in substance - performance incentives tied to a higher achieved rent are lawful - but it is compensation for licensed activity and must be paid to the brokerage, then distributed to you under your independent-contractor agreement with the broker's written approval. The owner cannot pay you directly. Get the bonus arrangement in writing, disclose it in the file, and make sure it does not cause you to push a tenant above the owner's authorized range without instructions.
Watch the incentive: the bonus creates a nudge to sign at $2,500 rather than at the best overall package for the owner. Present the trade-offs neutrally.
3. You want to run an ad reading "$2,300/month - no pet rent!" Evaluate the ad and produce compliant copy.
Read the worked answer
The ad is noncompliant on three counts.
- False price. $2,300 and waived pet rent are terms the owner has not authorized. Advertising a price you cannot honor violates the Act's prohibition on misleading advertising and is a consumer-protection problem even if you intend to "negotiate up."
- Misleading concession. "No pet rent" is untrue; pet rent is $50/month.
- Missing brokerage identification. Advertising by a sponsored licensee must include the licensed name of the sponsoring brokerage.
Compliant copy: "3BR townhome - $2,400/month, 12-month lease. One dog welcome with $50/month pet rent. Available October 18. [Brokerage Legal Name] · 555-0142 · Equal Housing Opportunity."
If the owner later authorizes a concession: advertise it only after it is in writing, state the conditions (term length, expiration date, credit approval), and pull the ad the day the offer ends. Keep a dated copy of every version in the file.
Also: never advertise "no pets" or a pet restriction in a way that would deter an assistance-animal request; the pet rent line should cover pets only.