If the business owns a building and appoints an external agent, then a charge will be received from that agent for agent's commission.
The agent will also be responsible for the collection of rent and the payment of certain expenses on behalf of the owner.
This paper analyses agent's commission and the general duties of an agent relative to arranging the:
- lease of premises
- collection of rent
- payment of various expenses etc
under the following headings:
- Appointment Of Agent
- Agency Agreement
- Agent Paying Expenses
- Rent Collected
- Agents Commission
- Expense Payments by Agent
- Agents Rental Statement
- Agents Commission Allocation
- Other Expenses Allocation
and includes a Standard Journal Entry for the treatment of rent received, together with an Agent's Rental Statement.
