Who pays for broker's fees in a rental? (New York, Hempstead: credit check, home)

Originally Posted by TomMoser

Once again, we're on to what people in various professions "should" be paid. People get paid what the market will bear.

To the question of real estate agents and rentals, most agents will not touch them. They are generally more work then they are worth. The up side is that you don't have to wait 3 months for a closing before you get paid.

Grant516, the agent who showed you that rental probably ended up with just $300 of the $1200 fee.

We wrote her the check directly.

She does maintain a shared office- I'm not saying they never do any work. I'm saying that in the Long Island rental market they're generally not necessary.

Why is it that the entire rest of the country has minimal to no brokers fees for renters except for NY? It's a tired, old tradition- stemming from the legwork a NYC realtor might have to go through, in a market there where purchases take place very seldom.

[TomMoser]

Originally Posted by grant516

We wrote her the check directly.

Sounds fishy to me. Checks should only be written to a brokerage or broker. It is illegal for a real estate salesperson to take money directly from a consumer.

[I_Love_LI_but]

Originally Posted by grant516

I didn't need an agent, but she represented the place. Our neighbors talked to the LL directly, who forwarded them to the agent, she did even LESS work and got paid.

It's like why should a car salesman (brand-new cars) get commission when in todays day and age 90% of the people under age 50 research a car on the computer pretty well before going in to the lot- all they need is someone to allow them a test drive.

The landlord should pay if they feel they need an agent, most don't even need an agent since there are so few apartments.

In this case, I can see you being ticked off that you had to pay a fee to a real estate since YOU found the apartment yourself.

However, your beef should be with the landlord who forwarded your neighbors to the agent, NOT with the real estate agent. Why the heck didn't your landlord just take your application directly instead of making you pay 1 months' "finder's fee" to a real estate agent who wasn't the one who brought about the "meeting of the minds" for you to rent the apartment?

Originally Posted by I_Love_LI_but

In this case, I can see you being ticked off that you had to pay a fee to a real estate since YOU found the apartment yourself.

However, your beef should be with the landlord who forwarded your neighbors to the agent, NOT with the real estate agent. Why the heck didn't your landlord just take your application directly instead of making you pay 1 months' "finder's fee" to a real estate agent who wasn't the one who brought about the "meeting of the minds" for you to rent the apartment?

That was my neighbors issues, they were the ones who had to pay this woman $1200 for the apt- and yes, there's a lot of beef against that landlord because he didn't fix anything in the time I was there.

We paid $1200 after seeing the SIGN on the building that it had units for rent- the sign was owned by the Building Owner / LL and not the agent.

My case in point- how many people are actually going into Real Estate offices looking for apartments, vs. how many people are just looking on the Internet to find places.

We got ripped on a system that totally isn't acceptable in the first place, my Roomate who is from another state couldn't wrap her head around renters paying fees to move in.

[Elke Mariotti]

Originally Posted by grant516

my Roomate who is from another state couldn't wrap her head around renters paying fees to move in.

Long Island does a lot of things differently

I own a condo in another state and when my tenants move, I have to pay the fee for the next tenant... Do I like it? NO!!!! However, that's how it's done in other areas--kind of "when in Rome, do as the Romans do". Of course ultimately, the landlord has to build his expenses into the rent (mortgage, taxes, insurance, maintenance/repair, rental fees, etc.)

In order to affect change, someone has to start the ball rolling and get others to carry it along - so far that hasn't happened.

[sallywed1]

brokers fees for rentals, even when finding it yourself has to do with the landlord might have a contract with the real estate to screen your application,check your credit, etc.

[I_Love_LI_but]

Originally Posted by grant516

That was my neighbors issues, they were the ones who had to pay this woman $1200 for the apt- and yes, there's a lot of beef against that landlord because he didn't fix anything in the time I was there.

We paid $1200 after seeing the SIGN on the building that it had units for rent- the sign was owned by the Building Owner / LL and not the agent.

My case in point- how many people are actually going into Real Estate offices looking for apartments, vs. how many people are just looking on the Internet to find places.

We got ripped on a system that totally isn't acceptable in the first place, my Roomate who is from another state couldn't wrap her head around renters paying fees to move in.

I see. You didn't explain it that clearly before. I thought your neighbor was possibly someone you already knew who lived there and inquired for you after you saw the sign on the building.

Was the phone number on the sign on the building that of the landlord or that of the real estate?

Sometimes landlords also own real estate offices. Maybe that's why you "had" to go through the real estate. Or like sallywed posted, they have a contract with the real estate and the real estate actually "does something" like screening your application, etc.

However, I wonder if the "real estate fee" for an apartment rental is based on the same premise as the "real estate fee" for a property sale ... that of whoever brought about the "meeting of the minds" to make the transaction is who is owed a fee. In that case, I would agree paying the fee was a rip off for both you and your neighbor.

As for people going into real estate offices and looking for rentals ... actually a lot do because they think that the "better" apartments are all represented by real estate offices and that landlords will think more highly of them as tenants if they can "afford" to pay the real estate fee. Crazy, but true in case of people I have known.

I suppose if LI was like other places with a lot of space and several newer rental communities that apartments wouldn't be such a hot commodity and landlords would be the ones paying real estate fees (and perhaps even offering deals like "first month's rent free" to attract tenants). Supply and demand.

[therook903]

To TomMoser and Elke,

I am in the real estate business in NC and have lived in NY, Long Island the majority of my life. In NC the landlord pays the fee and I as a landlord agree to that being the way it should be. I know you might be putting time into your listing etc. even though anybody with a computer can list them just the same without a real estate license. Lets face it, its not a hard thing to do. I think both of you being real estate agents are missing the point with what most of these people are upset about. It doesn't matter what split you have with your company or the time you lost listing/showing the property to rent, they are upset that the tenant pays the fee NOT the landlord. The Landlord is the one who is going to make an income off of the property being listed and on top of that most renters don't have thousands of dollars to **** away on fees. The amount of money a tenant has to pay to move into a home on LI they can use as MOST of a down payment on purchasing a house. Its STUPID!!

[Elke Mariotti]

Originally Posted by therook903

To TomMoser and Elke,

I am in the real estate business in NC and have lived in NY, Long Island the majority of my life. In NC the landlord pays the fee and I as a landlord agree to that being the way it should be. I know you might be putting time into your listing etc. even though anybody with a computer can list them just the same without a real estate license. Lets face it, its not a hard thing to do. I think both of you being real estate agents are missing the point with what most of these people are upset about. It doesn't matter what split you have with your company or the time you lost listing/showing the property to rent, they are upset that the tenant pays the fee NOT the landlord. The Landlord is the one who is going to make an income off of the property being listed and on top of that most renters don't have thousands of dollars to **** away on fees. The amount of money a tenant has to pay to move into a home on LI they can use as MOST of a down payment on purchasing a house. Its STUPID!!

therook903, Long Island is a different kettle of fish! Neither Tom Moser nor I make the rules/created the "customary" ways things are done in the rental market here--we just work with them!

I'm not missing the point at all (assumption) - I'm a landlord in Austin, TX, where I as a landlord have to pay the fee, so I know all about what happens in other States, in fact, even upstate New York. Here on Long Island, attorneys handle the contract(s) in a purchase, not Realtors, unlike in most of the rest of the country.

Is it crazy how much a tenant has to come up with when renting a whole house - no question. But at this point, that's how it's done. My trailblazing days are behind me, but if someone else wants to take charge and propose and implement these drastic changes, more power to them

[Elke Mariotti]

Originally Posted by therook903

To TomMoser and Elke,

I am in the real estate business in NC and have lived in NY, Long Island the majority of my life. In NC the landlord pays the fee and I as a landlord agree to that being the way it should be. I know you might be putting time into your listing etc. even though anybody with a computer can list them just the same without a real estate license. Lets face it, its not a hard thing to do. I think both of you being real estate agents are missing the point with what most of these people are upset about. It doesn't matter what split you have with your company or the time you lost listing/showing the property to rent, they are upset that the tenant pays the fee NOT the landlord. The Landlord is the one who is going to make an income off of the property being listed and on top of that most renters don't have thousands of dollars to **** away on fees. The amount of money a tenant has to pay to move into a home on LI they can use as MOST of a down payment on purchasing a house. Its STUPID!!

therook903, Long Island is a different kettle of fish! Neither Tom Moser nor I make the rules/created the "customary" ways things are done in the rental market here--we just work with them!

I'm not missing the point at all (assumption) - I'm a landlord in Austin, TX, where I as a landlord have to pay the fee, so I know all about what happens in other States, in fact, even upstate New York. On Long Island, other RE transactions are done differently as well: attorneys handle the contract(s) in a purchase, not Realtors, unlike in most of the rest of the country.

Is it crazy how much a tenant has to come up with when renting a whole house - no question. But at this point, that's how it's done. My trailblazing days are behind me, but if someone else wants to take charge and propose and implement these drastic changes, more power to them