Not all commissions are the same type
Mixing up commission types is the most common source of calculation errors in real estate offices. Before anything else, you need to clearly separate three kinds:
1. Sale commission
Usually a percentage of the sale price (e.g. 2%–3%), calculated when the deal is actually finalized — not at negotiation or initial reservation.
2. Rental commission
Typically equal to one month's rent or a percentage of it, and the calculation differs depending on whether the contract is an annual renewal or a long-term lease.
3. External commissions
If your office works with partner brokers who aren't your employees, their commission needs to be recorded and calculated separately from your staff's — otherwise your financial reports will blur the two together.
The 3 most common manual-calculation mistakes
- Forgetting a commission entirely: a deal closed outside the main system (over WhatsApp or a phone call) that never got logged.
- Mixing sale and rental commissions: in one report, making it hard to see how each type is actually performing.
- Paying a commission before the deal is actually final: then the contract falls through and you're stuck trying to claw it back.
How does AZRAR help?
AZRAR's automatic commission system calculates sale and rental commissions the moment a contract is finalized, keeps external commissions separate from internal ones, and generates a detailed report per broker — no separate spreadsheet, no forgotten deals.