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I'm new to NY and am renting in long island. I would like to get a clear idea about the broker's fee.
1. As oridiculous as it sounds, I was told that if look at the rental infroamtion online, call the listing agent to make an appointment, drive to look at the place myself, and the landlord's agent just shows it to me, and I have to pay 1 month rent(not the landlord who hires the agent in the first place). This is true？
2. Does it make any difference whether I use a tenant's agent in terms of fee? Do I pay extra or my agent and landlord's agent will split the broker's fee？
3. All listing in MLSLI has listing agents while cragislist has ads posted by owners directly. If contacting the owner directly would avoid the broker's fee, what would be the disadvantages of not going through an realtor?
1. NO
2. Not sure but I think they split
3. The disadvantage is that CL listings can be scams, just like any other part of the country.
Be aware that almost any apartment you look at that is in a house (particularly if it's in a basement) is going to be illegal on Long Island.
Good luck.
Hi there. I do not understand your answer to my question 1. Are you saying I do not need to pay broker's fee if I contact the listing agent myself and get the lease?
As unusual as it is/sounds for tenants from out-of-area, on Long Island the tenant pays the fee.
If the rental is listed on Multiple Listing (with a "listing agent") then yes, upon lease signing, the fee/commission is due. Most of the time it's one month's rent; but there are some agents who want (and get) 10% of the annual rent and even as much as 15% of the annual rent.
And no, it makes no difference if you use a tenants' agent. Why? The listing agent determines both the commission amount and the split. Both the listing and the tenant's agent get what's pre-determined; since they both "did their job", it's not likely they will take less. Keep in mind that whatever the total commission is goes first to the company ("Broker") who then splits the amount with the respective agent(s). (Example: commission/fee is $1,500 with two agents; listing Broker gets $750 and so does "renting" Broker. Each Broker then splits the $750 with their agent; amounts vary by individual agreement between "Broker" and agent.)
Listings on Craigslist can be both, from landlords and from agents who want the most exposure for their listing (agents are required to disclose that they are agents). With regard to legality, it is true that basement apartments are no longer permitted, and there are illegal rentals (= without a Town permit), however, there are plenty of legal apartments in private houses! In the Town of Huntington alone, there are about 1,600 of them as of January of this year; this does not include duplexes or other multi-unit properties.
Your question in #1 boiled down to "if I look at an apartment do I have to pay the agent?"
No.
If you MEANT, "All the agent does is show is let me in, do I owe them one month's rent" then the answer is YES. That's the way it works on Long Island.
Use craigs list, trulia, zillow to look yourself if you use an agent on a year round lease you will pay the fee.
Inventory is tight here. Landlord does not have to use a realtor. I own a place I rent out, no way would I pay a realtor a one month fee to rent my place. I can get tenants easy. But if a tenant wants someone to do leg work for them they usually pay.
Only exception is short term summer rentals usually landlord pays.
Landlords have their own leases or you can get one online or even in Staples where they have paper copies for sale. No need for a lawyer on a lease.
More important make sure guy owns the place and it is legit. Also it is a legal rental.
Condos for rent by owner are pretty good to rent year round if you like safety and no relying on landlord for everything as condo will do lawn, snow removal and garage pick up etc.
Your question in #1 boiled down to "if I look at an apartment do I have to pay the agent?"
No.
If you MEANT, "All the agent does is show is let me in, do I owe them one month's rent" then the answer is YES. That's the way it works on Long Island.
It's one of those LI things like tipping the title person at closing. It's standard and accepted practice.
There are also disadvantages to owner for using a realtor aside from the cost.
Small landlords, who only own 1-2 places and rarely rent out are exempted from a lot of the fair housing rules.
Meaning you are free to not rent to a bongo player, a person with five kids, someone who needs place to conform to their handicap. A realtor has to follow the fair housing rules.
The exemption is with good reason. A family with two young kids who own a two family house with a small backyard that is shared and has a stay at home wife. Cant afford to put ramps in and change bathrooms around for a handicap person or have a person with three loud teenagers playing music or some guy who works night shift who needs silence all day etc.
Realtors are very good at checking credit but when it is a small time landlord in your own place you live you have to be careful.
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