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I'll soon be renting out my current one-bedroom condo in Manhattan.
Should I do it myself, or should I retain a broker?
The way I see it, the advantages of using a broker are:
(1) I don't need to deal with appointments and being present for viewings;
(2) Broker may have knowledge about my building's board approval process.
On the other hand, the pros of finding a tenant myself are:
(1) Better able to vet prospective tenants - this is important to me given how much of a headache it can be to evict a bad tenant
(2) Easier to rent out because the prospective tenant won't have to pay a broker's fee.
For people who have rented out apartments in Manhattan, how did you do it, and what would you recommend?
I'll soon be renting out my current one-bedroom condo in Manhattan.
Should I do it myself, or should I retain a broker?
The way I see it, the advantages of using a broker are:
(1) I don't need to deal with appointments and being present for viewings;
(2) Broker may have knowledge about my building's board approval process.
On the other hand, the pros of finding a tenant myself are:
(1) Better able to vet prospective tenants - this is important to me given how much of a headache it can be to evict a bad tenant
(2) Easier to rent out because the prospective tenant won't have to pay a broker's fee.
For people who have rented out apartments in Manhattan, how did you do it, and what would you recommend?
If you're smart, you'll hire and vet a good broker. Surely there must be a broker that you trust and can use? If money isn't a problem, I would let the broker do the grunt work, then you can further screen them if need be.
Is it common/acceptable practice to tell the broker that I would like to personally meet and interview the prospective tenants?
This is my first time renting out an apt as a landlord. My experience as a renter has been that the broker seems to have absolute authority (I never even met or knew who my landlords were until after I got the apt).
I don't think it's common but I wouldn't be shocked, especially when you're talking about a small landlord renting out their one apartment. However--give the broker agreement a hard eye. Some of them require payment of a commission so long as they bring in a suitable willing tenant, so make sure your contract gives you a veto.
I'll soon be renting out my current one-bedroom condo in Manhattan.
Should I do it myself, or should I retain a broker?
The way I see it, the advantages of using a broker are:
(1) I don't need to deal with appointments and being present for viewings;
(2) Broker may have knowledge about my building's board approval process.
On the other hand, the pros of finding a tenant myself are:
(1) Better able to vet prospective tenants - this is important to me given how much of a headache it can be to evict a bad tenant
(2) Easier to rent out because the prospective tenant won't have to pay a broker's fee.
For people who have rented out apartments in Manhattan, how did you do it, and what would you recommend?
I had rented out a condo in the Bronx, both with and without a broker, and my experience is that brokers are fairly useless in detecting a bad tenant in advance. They can only check a tenant's background for up to two years back. My last tenant had actually previously filed for bankruptcy, and the broker did not know that - I received the info about the bankruptcy (and various financial protections that bankrupt people enjoy) from the tenant's lawyer about 10 months after she started renting from me! Fortunately, the tenant did not abuse her bankruptcy status by non-payment of rent, though she could have easily done it (she did some other bad things at the end of her stay in my apartment, but she paid the rent while she needed the apartment, thank goodness).
While you cannot rely on a broker to detect a tenant that will cause problems, having a real estate company MANAGE your property (which does not cost too much) might be useful legally, though: there are a million requirements with which a landlord has to comply in NYC (eg, are you aware of a NYC law that requires a landlord to paint the rental apartment every 2 years, even though the tenant has not changed?), and the real estate firm will be knowledgeable about them. If I were to rent out an apartment again in NYC (which I won't do because I've come to consider it much more risky than it's worth it), I would definitely hire a real estate firm to manage it - not because I don't know how to rent a normal property to normal people in a normally run city, but because in NYC a small landlord really needs that layer of legal protection, at a minimum (and it is far less expensive than constantly consulting a lawyer).
If you can find a broker who has a strong history in your building, there might be an advantage there, otherwise, the only advantage is saving time.
It's easy top get the property up on streeteasy and other sites, and far more people will be interested as you can list it by owner/no fee.
A broker would maybe have you meet the tenants at lease signing, but might be concerned that you're looking to violate discrimination laws with your "vetting."
Interviewing a tenant isn't going to tell you anything unless you're a trained interrogator. You can have a background check done, request a landlord reference, credit check, check housing court history, that will tell you far more.
If you can find a broker who has a strong history in your building, there might be an advantage there, otherwise, the only advantage is saving time.
It's easy top get the property up on streeteasy and other sites, and far more people will be interested as you can list it by owner/no fee.
A broker would maybe have you meet the tenants at lease signing, but might be concerned that you're looking to violate discrimination laws with your "vetting."
Interviewing a tenant isn't going to tell you anything unless you're a trained interrogator. You can have a background check done, request a landlord reference, credit check, check housing court history, that will tell you far more.
Makes sense.
My understanding is that under the new rent laws passed this year, "check housing court history" is no longer permissible. Of course, nothing prevents you from looking up names on ecourts, but ecourts deletes Landlord-Tenant cases 14 days after last appearance.
If you want to do it yourself and get a good tenant, then charge a below market rate. You will have your pick of the crop.. Accept noone with 720 or lower credit score. Make sure their communication is always respectful and demonstrates a proactive attitude.. Stick with professionals and you are not likely to have any issues.
Don't respond to anyone who sends a one line inquiry.
Brokers will just look at credit score and income and ignore the personality of the tenant.
Something to look at is whats being listed in your building already. If everything is being listed as NO FEE then you might have trouble listing with a broker who will charge a fee to the tenant.
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