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I was shown a few rental places in northern NJ by an agent who will show me houses for sale in the future. He told me that I pay for the 1 month commission for rental, plus deposit (1.5 month) and 1 month rent, which work out to be a huge sum!
My question: is this normal? In other states usually landlord pays rental commission.
Please let me know asap if this is normal, as I have to sign a lease soon!
This is a huge sum of money for very little work, since typically you visit a few rental properties on the same day and decide, so for little work you have to pay the renter/owner agent 0.5 month of rent?!
Quote:
Originally Posted by kykatsmom
I think that sounds abou the same as what my NJ realtor said. I know it's a hefty price tag, especially if you're looking at a house for 3-4K! yikes!
In north & central Jersey (especially Bergen & Hudson Ctys), the prospective tenant would be the real estate agent fee. These counties are part of the NYC metro area and really defacto Six & Seventh Boros.
One month or 1.5 month for the realtor is actually a good deal. In NYC (all 5 boros), the standard is anywhere from 12% - 15% of the annual rent.
BTW, Jersey City & all of Hudson County is getting very pricey especially west of the Turnpike Extention in Jersey City.
I was shown a few rental places in northern NJ by an agent who will show me houses for sale in the future. He told me that I pay for the 1 month commission for rental, plus deposit (1.5 month) and 1 month rent, which work out to be a huge sum!
My question: is this normal? In other states usually landlord pays rental commission.
Please let me know asap if this is normal, as I have to sign a lease soon!
Thanks
In a tight real estate market like it is in the NYC metro area where people will pay whatever is being asked just to live 'in or near Manhattan', people will pay these sums of money. The reasoning is that if you can't afford it, you shouldn't live here.
This is a huge sum of money for very little work, since typically you visit a few rental properties on the same day and decide, so for little work you have to pay the renter/owner agent 0.5 month of rent?!
I'd like to work in that perfect world. However, as a realtor in a sought after location I can tell you that folks are very careful. I have never had a client decide that quickly. Instead, clients may want to look at 10-20 places and then decide to look in another town. It's extremely rare, unless so many conditions come together and the client is in a duress situation and has to take a space, that it happens that quickly. And, no matter what the rent, when you add the landlord's 1.5 month security and first month's rent and then add another month's rent for the agency fee, it is alot of money. Please keep in mind that the 1 month fee is split between the listing and renting agencies. Then the agencies give a portion to the agent, minus fees. From that, the agent has to pay taxes, expenses (gas), health insurance. If one lucks out and shows 3-5 places and a client's credit report, employment verification and rental application are approved...great! If not, the amount made, hourly speaking, is not significant.
Folks, I've got the same question: we are searching for rental properties in Essex county, and found out that the listing agents usually want the tenant to pay the 1 month commission. I find this rather strange, especially since the housing market is not in top condition anyway, many houses are on the market for extended periods, and it is the landlords' best interest to get the house rented quickly.
Why should I pay the commission to an agent who doesn't even represent me, but the landlord? Is it something that is common on this market? I understand that agents have to make their money too, also that this is a much sought-after location, but I still fail to figure out the reasons...
Any advice is much appreciated.
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