Who pays for broker's fees in a rental? (New York, York: real estate, apartments)
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I'm confused. In chicago where I currently live, the lessor pays for the broker's fees, which ends up being the 1st month rent. Is it the other way around in Long Island? So this means that I go around looking for the house to rent in LI, then look up and call the leasing agent. If I want to rent the house, I have to pay for the 1st month rent, security deposit, AND broker's fees (another month's rent essentially)? How unfair is that! I'm doing all the work- the agent did nothing except list the house for the owner's behalf.
You got it! Welcome to NY! (Pa is the same too) I put down 2 months security (I have pets) and a brokers fee plus the 1st months rent. Zapped all my savings forever!
I'm confused. In chicago where I currently live, the lessor pays for the broker's fees, which ends up being the 1st month rent. Is it the other way around in Long Island? So this means that I go around looking for the house to rent in LI, then look up and call the leasing agent. If I want to rent the house, I have to pay for the 1st month rent, security deposit, AND broker's fees (another month's rent essentially)? How unfair is that! I'm doing all the work- the agent did nothing except list the house for the owner's behalf.
Well, it could be said that if the agent hadn't listed it, you couldn't have found it...
Or you could have asked an agent to find a rental house for you and not be the one running around.
Unless you answer "by owner" ads, the broker(s) and the agent(s) share the commission. I agree, the higher the rent, the tougher it is to come up with all that cash--but that's the way downstate NY
You got it! Welcome to NY! (Pa is the same too) I put down 2 months security (I have pets) and a brokers fee plus the 1st months rent. Zapped all my savings forever!
Actually, upstate New York is like most of the rest of the country - landlord pays the fee, as I found out when talking to some Realtors from upstate NY.
Not good for landlords - tenants can move every year and other than moving costs/inconvenience of the move, it doesn't cost anything. The landlord on the other hand comes up short while looking for another tenant = vacancy $$ has to be built into the rent to cover costs, etc. Just another way of looking at things
NY is more liberal about protecting the renters. The theory is, if the renter is paying the fees, the realtor is more likely to be fair with out-of-town renters. After all, if owners are paying the fees, chances are, the realtor will be showing properties with the highest commission.
Besides, if you really want to avoid the fees, try No Fees rentals. Believe me, it’s the same.
Actually, upstate New York is like most of the rest of the country - landlord pays the fee, as I found out when talking to some Realtors from upstate NY.
Not good for landlords - tenants can move every year and other than moving costs/inconvenience of the move, it doesn't cost anything. The landlord on the other hand comes up short while looking for another tenant = vacancy $$ has to be built into the rent to cover costs, etc. Just another way of looking at things
What do you mean it doesn't cost anything?
If the tenant gives adequate notice, most landlords of decent places can fill the apartment ... with the emphasis on "decent." If it's a craphole, they will have trouble.
How about paying broker's fees every year because most decent rentals are listed with real estates as landlords don't have to pay the fee? Who wants or can afford to do that?
I also heard some of the brokers around here are getting like Manhattan ... 1 month's rent is not enough, they want a larger percentage according to the yearly rent.
Also, how about the tenants who pay through the nose for the broker's fee and then expect to live there a couple of years at least and the landlord says they need to move after the 1 year lease is over?
I think the deck is way more stacked against tenants.
NY is more liberal about protecting the renters. The theory is, if the renter is paying the fees, the realtor is more likely to be fair with out-of-town renters. After all, if owners are paying the fees, chances are, the realtor will be showing properties with the highest commission.
Besides, if you really want to avoid the fees, try No Fees rentals. Believe me, it’s the same.
You forgot the C in NYC.
That is a renters' paradise.
On LI, the landlord is king when it comes to the laws and the courts.
11-30-2009, 05:25 PM
grant516
n/a posts
To the OP-
Yes, it's a rediculous practice. There are even some apartments above retail that I've called before after seeing signs posted for rent, and those people wanted a 1st month realtor fee, even though the realtor may spent 20 minutes showing you a property you know you wanted in the first place.
There is minimal available rental properties so the practice can still fly- and don't kid yourself, some of those realtors are charging the landlord as well.
You can often low-ball those people. Wait to do it after all their 'legwork', once they go through the effort to contact the landlord who gets papers drawn up the last thing they want to do is back out on the offer. You might be able to get it for half a months rent.
I'm confused. In chicago where I currently live, the lessor pays for the broker's fees, which ends up being the 1st month rent. Is it the other way around in Long Island? So this means that I go around looking for the house to rent in LI, then look up and call the leasing agent. If I want to rent the house, I have to pay for the 1st month rent, security deposit, AND broker's fees (another month's rent essentially)? How unfair is that! I'm doing all the work- the agent did nothing except list the house for the owner's behalf.
If you buy, the seller pays the broker fees...but as previously mentioned, if you rent, then you (the lessee) pays the fees.
If you buy, the seller pays the broker fees...but as previously mentioned, if you rent, then you (the lessee) pays the fees.
Although the contract is with the seller, the only person I have ever seen bring a check to the closing is the buyer. So who, in effect, pays the fee?
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