Broker Fees on rentals - entire state or just Boston? (Cambridge: apartments, renter)

[itscolduphere]

Hello
My husband is considering a job offer in Cambridge. I'm reading all sorts of things on the MA and Boston board that it's not easy finding a nice rental to begin with if you're unfamiliar with the area. But throw in this "broker fee" and it's really sounding pretty daunting because of the behind-your-back stuff that you have to worry about.

Not against the fee itself if it finds a great place. We'd be seeking a single family detatched home or possibly a nice end unit townhome. (I'm seeing some things in our price range, yes, that are not dumps, in the outlying suburbs). But if you're spending a good amount for a nice place in a safe area, and you're paying this fee, that is on top of first/last/security, that's a pretty big sum. May as well fork out downpayment on a house, but especially in this economy, I would never ever do that in an area that's unfamiliar.

I'm wondering if there is a point where this renters fee game ends as you travel away from the Boston area. For example if you go 45 mi. in a NW direction, will you find realtors that will gladly show you rental home listings that you find on the MLS, without this fee factor?

We are temp. in NC and lived in CT prior, where I have an agent who shows me rental homes every few months; never any fee or problem with her time, she's wonderful. All things weighed, it may be the better decision to move back there where what we're looking for housing-wise is more doable and remain exclusively freelance. The salary addition in Boston is very tempting but it may not be worth the haystackneedle factor of finding suitable housing in time, the commute hassles, safety issues, etc.

Besides if this "fee" has a "border" or not, any other related info. that Boston area newbies aren't aware of would be helpful from any who have relocated there (or decided not to after a go-see).

Thanks in advance!

[CaseyB]

Seems to me, if there's a realtor involved, they have to be paid for their time, either by the prospective tenant, or the landlord.

[itscolduphere]

Yes, I imagine in CT the landlord is paying the agent or listing office, but the prospective renter is just not troubled with even knowing about it. I think maybe the attitudes are different in Boston; busier agents, more $$$ involved, etc. My agent in CT is aware that if I rent there I will most likely buy there also. Was hoping to find same in suburbs of MA.

[CaseyB]

Have you checked craigslist or local classifieds for "no fee" rentals?

[itscolduphere]

Not yet, my CT agent from Coldwell Banker said she would put me in touch with an agent up there... waiting to hear back and in the interim, getting as much info. on these boards from people also as far as what to expect. Glad to learn about the fee thing now: not sure if this agent would expect that or not... will talk to my CT agent further about what she thinks will be the case. We have a trip up to MA coming up; husbands potential boss flying us up for a look around, and formal offer acceptance if we like it. Plan on getting newspapers and further info during this trip. We were expecting to make an additional future trip up afterward for the actual home search. I can check these sources you mentioned also... thanks for your posts

[capecodcathy]

If a Realtor has agreed to assist a landlord in locating a viable tenant, the Realtor and landlord have already arranged for the fee, paid by the landlord. Any Realtor is not going to want to chase a tenant for their fee, usually equal to one month's rent. Much like a seller will generally pay the commission to a Realtor out of the proceeds of the sale. The agreement is between the Realtor and the landlord, unless specifically stated otherwise.

[breezy1]

Since this is a job relocation, if your husbands employer is covering the relo costs, and if you get hit with a fee, see if they will cover the fee as part of the relo expense.

Regarding who pays the fee - just call some of the listings you see on Craig's list where a fee is involved and inquiry who pays it. That should give you a sense of what to generally expect.

[holden125]

In almost the entire USA, the landlord pays the broker's fee. In New York City it's almost always the tenant who gets stuck, and often to the tune of more than 2 months rent. Between deposits and the fee, you could need $15K to move into a 1BR apt. in Manhattan.

In the immediate Boston area it seems the tenant gets stuck with at least part of the fee most of the time, but most often it's a half-month's rent. Based on my experience there is a "border" of sorts. On most (but not all) rentals in Boston, Cambridge, Brookline, Newton, maybe Somerville and Quincy the tenant will pay some kind of fee. As you get father out more no-fee apartments show up, and by 45 miles out I think no fee is more common.

[breezy1]

My experience in looking at rentals (Cambridge, Somerville, Arlington, Newton), even before we worked with a realtor, was that there was almost always a fee involved, and the tenant would be responsible for it. It was a full months rent (perhaps because we were looking a single family homes to rent). I was told by several sources that the tenant being responsible for the fee was unique to the immediate Boston area - perhaps it's the 'supply and demand' thing. Good single family homes as rentals were very hard to find and the ones that became available, rented very quickly. It was hard to line something up coming from out-of-state, which is why we ended up working with a realtor to help us. They scoped out alot of places before hand. We only had one weekend in town to find a place. If you are more local, it's easier to do this on your own, using Craig's list and other sources to find the "no fee" places. However, you may not find the quality of what you're looking for if you limit your search to "no fees" in towns that typically charge the fee for rentals. It depends what you're looking for and in what area.

[jaspt17]

Originally Posted by capecodcathy

If a Realtor has agreed to assist a landlord in locating a viable tenant, the Realtor and landlord have already arranged for the fee, paid by the landlord. Any Realtor is not going to want to chase a tenant for their fee, usually equal to one month's rent. Much like a seller will generally pay the commission to a Realtor out of the proceeds of the sale. The agreement is between the Realtor and the landlord, unless specifically stated otherwise.

Broker's fee, which is his commision for either selling or renting the house, usually comes from the landlord/owner pocket.