exclusives to brokers for rentals?

where is the brownstone located?

Posted by: guest at October 18, 2007 3:29 PM

I'm currently looking, please email with details and I can provide mine: elkart@hotmail.com

Posted by: guest at October 18, 2007 3:29 PM

in this market you should be able to easily rent it out without the aid of a broker...ive done it dozens of times and its really not a big deal

Posted by: guest at October 18, 2007 3:38 PM

I always wondered what were the advantages to listing a rental with a broker to begin with. I'm a home owner who rents and I would never use a broker to find tenants. I think its a silly waste of money if I were paying and I think its a lazy call to ask the prospective tenant to pay for YOUR choice to use a broker because you don't want to do the work of finding one yourself. just asking...

Posted by: guest at October 18, 2007 3:40 PM

there are several online services to do credit/background checks...craigslist + ny times will get you plenty of applicants.

i'd much rather do it myself instead of relying on the pre-screening from a broker.

make everyone fill out an app, get references, proof of employment, credit check, and get a good personal vibe from the applicant.

no need for a broker

Posted by: guest at October 18, 2007 3:51 PM

I am a townhouse owner and a real esate broker who only works on sales. That being said I used to give my apartments to a rental broker on an exclusive basis. I don't know that I will anymore. I would give it to 2 or 3 brokers that I've interviewed and trust. I want them to interview prospective tenants, really check their references, and then make sure that they are really qualified to rent in my building. You also want to know how much of their business (both listing and tenant) is repeat or referral.

I wouldn't give one rental broker the exclusive because unlike reputable sales brokers, rental brokers who take rental exclusives do not co-broke willingly (some won't at all, others say they will then make it difficult for other brokers to get their tenants in) They all try to do both sides of the deal themselves which limits the number of renters that get to see your property. This includes the big ones that claim co-broke, co-broke, co-broke to get the exclusive. It was a real eye opener to find out how most rental brokers really work.

Posted by: guest at October 18, 2007 3:52 PM

I have listed on my own and I think aside from the raw numbers (credit and income) you really have to go with your gut. Also pay attention to details. When the person enters the home do they close the door behind them? Do they wipe their feet before entering the apartment? etc. These are things that a realtor wouldn't care or pay attention to.

I listed one time with an agent and that was the one time I had tenants skip out on the last month's rent and they left the place a mess after just over a yaer of tenancy.

You are better off having them give you two months deposit instead of 1 month goig to pay the realtor's fee.

Posted by: guest at October 18, 2007 4:02 PM

whats the point of getting two months security anyway? just because you feel the money should go *somewhere*? if you're going to rent your apartment I think the best way to go is to be fair with people. you want tenants to be good and respectful I think it sets a precedent to be reasonable with requests. Even though I own property that I rent, I rent as well. I am very well qualified with credit and income and I NEVER rent apartments that are handled with brokers where I have to pay the fee because I would rather take my money elsewhere. Also, I feel like a person who cares enough about their place to want good tenants should care enough to do the footwork and find the right tenant. I don't want to be screened by an over paid broker. I also don't want to pay you two month's security because you didn't use a broker, if thats the case then I might as well corcoran or whomever.

Posted by: guest at October 18, 2007 4:23 PM

I've rented apartments out (1-4 bedrooms) and a whole townhouse. While on the apartments I always just list it myself on Craigslist and do the showing, interviewing and screening others mention above, with the whole townhouse we thought that people looking for a higher-end property were more likely to go through a broker. It was a horrendous experience, dealing with brokers who lied, b.s.-ed me, played head games. They claim to co-broke and hard-sold me that they would only advertise the property in the NYT if they had an exclusive. It worked, but I also ended up with a tenant who has an unsual set of circumstances and a terrible credit rating. Understanding the circumstances and seeing proof of his income, we took 4 months rent deposit. And thank goodness we did. The tenant has also been acting like a total b.s. artist. We almost had to evict him to get the most recent rent. I'm hoping that he doesn't screw it up in the months to come and force his family onto the street.....the experience has shown me, among other things, that we will not use a rental broker again. They stink.

Posted by: guest at October 18, 2007 4:46 PM

Rental agents and brokers who are mebers of the Real Estate Board of NY (REBNY) are held to the same requirements as sales agents in terms of co-broking. That said, there are certain sales agents as well who avoid co-broking.

The advantages of going with an exclusive listing with a REBNY-member firm (as opposed to an open listing, in which you give the listing out to a number of different brokers) include the following:
1. You are dealing with only one person/firm, as opposed to many different agents
2. You get increased exposure, precisely because of REBNY's co-broke requirements -- within 24 hours of signing the exclusive agreement all REBNY member firms are required to communicate information about the property to all other REBNY member firms. This time period was recently shortened from 72 hours. In the case of an open listing, the broker will not communicate information about the property to others.
3. The broker will take care of running the credit, checking references, gathering documentation, etc., all of which will be presented to you for your approval, and will prepare the leases for you in keeping with all local laws regarding lead paint and window guard riders, etc.

And this is all at no cost to the owner -- and BTW most firms in Brooklyn charge a fee equal to 12% of a year's rent, which is more than one month's rent. In Manhattan the fee is usually 15%.

Posted by: guest at October 18, 2007 4:55 PM

I am sorry for 4:46's bad experience, but not all rental brokers are like that. And the decision to accept this difficult tenant was yours, not the broker's, so I don't see how they are to blame in this story.

Posted by: guest at October 18, 2007 4:57 PM

If you do go with a broker, PLEASE PLEASE read the agreement. I know of one instance where a landlord signed an "exlusive" with a broker who failed for two months to provide a decent tenant. The landlord finally found someone by word of mouth, only to discover that he'd signed an agreement promising to pay the broker's $3000 fee if he *didn't* get his tenant through the broker ... which is why the broker wasn't doing any work, he'd get paid when the landlord found any tenant eventually and then he'd just hit the landlord up for the money when the landlord asked for his keys back.

brokers are scum. Craig's list and a credit report.

Posted by: guest at October 18, 2007 5:54 PM

Hey 4:23, a couple of answers to your queries. First, the point of getting 2 months security is NOT just because the money has to go somewhere, it is for, as the name suggests, ADDITIONAL SECURITY. If a landlord isn't using a broker they likely want additional protection against the relatively unknown morality and financial stability of their new tenant.
And second, there is a difference for you as a renter between paying a landlord an additional deposit vs. paying a broker's fee. If you pay it as a deposit, you will get it back, with interest, when you move out (unless you've done something wrong). Pay it to a broker, and it's gone forever.
I personally don't use a broker for my rentals, but it is A LOT of work to get good tenants so I can appreciate that rental brokers are a necessary evil for other landlords with bigger fish to fry.

Posted by: guest at October 18, 2007 6:48 PM

Totally not worth it in my opinion. Everyone knows to look on Craigslist- especially for rentals and especially in Brooklyn. The broker is probably going to post on Craigslist to get traffic to your place, and you can just do that yourself! However, if you're not up for the credit check process, etc- then go with a broker. It does take a little work (posting, applications, credit checks, etc.).

Having said that, I've only rented out my place by myself (not through a broker) and it has never been a problem.

Posted by: guest at October 18, 2007 11:10 PM

to REBNY fan at 4:55 and all others... I currently work at one of the large REBNY member firms in Brooklyn and before was at one of the other big ones (the biggest in Brooklyn). Rental agents are supposed to follow the same set of REBNY rules but in Brooklyn they have figured out ways around it so they don't have to let the other brokers know about their listings. Most rental brokers do whatever they can to do direct deals. I find it pretty disgusting which is why I will not give an exclusive on one of my rentals again.

Most sales agents at REBNY firms do co-broke but we all know their are some that make it difficult for other brokers to make a deal on their listings as well.

Posted by: guest at October 19, 2007 7:41 AM

Personally i have had some bad experiences with brokers and rent out my apartments myself. I will say it is some work and not everyone wants to deal with it, which i can understand. If you really feel you want to go with a broker my suggestions would be
1) Limit the time frame of the exclusive arrangement. He needs to produce a tenant in say 3 weeks or you move on. You need to protect yourself if he isn't working the listing.
2) Be sure to judge for yourself what you want to charge for rent. I would regard any number a broker suggests with some skepticism b/c they would rather rent out the apartment quickly then get the very slight increase in commission. So they will prefer that you ask a rent that is well below market.
3) Be thorough in reviewing documentation for the tenant. I wouldn't trust any screening they claim they have done.
4) Meet the tenant before you agree to rent to them. When you live in a brownstone with a tenant its a more intimate relationship than with a normal landlord-tenant. These people are in your HOME you want to feel comfortable with them. I can't stress this enough!!

Anyway good luck

Posted by: guest at October 19, 2007 5:01 PM