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February 1, 2008
method for renting your apartment without a broker
hi all-
was wondering what all the experienced landlords 'method' is for renting out apartments. Obviously NOT using a broker and going craigslist route.
Do you have one 'open house' and screen everyone there?
what kind of application forms do you have them fill out?
Do they have to pay you for their credit check?
what kinds of questions do you ask that may not be obvious?
what if the apartment is being renovated...would you still show it in progress?
sorry if this has been covered or seems obvious...first timer here.
Comments
We first told everyone we knew we had an apartment available -- We've been very lucky to find good tenants through friends, and already knew a bit about their background before renting to them. No guarantee of course, and we also did proper credit checks via a landlord service on line (although can't recall name right now).
If your name means you are in Carroll Gardens, you may want to post on the listserves in the neighborhood -- I've recently seen some posts for teachers and others looking for places.
Oh yeah, to answer your other questions: we had them fill out an application and something where they sign permission to do a credit check. We did NOT have them pay, but you can certainly ask if you'd like. We didn't screen a bunch of applicants -- if we had we would have asked them to pay the credit check as it would have been too expensive otherwise.
Posted by: guest at February 1, 2008 6:38 PM
We've had good luck finding tenants on Craigslist. You can state your criteria right up front in the ad. (i.e., references, credit check, W-2s no smoking, no pets, employment history, etc) We went that route. There were so many responses, you sort of have to narrow them down. We had an open house after contacting some of the people who responded to the craigslist ad. You can get a Blumberg's form in any office supply store called application to lease. If the person is interested, you ask them to complete the application, and take it from there. You can do a credit check, employment check, W-2 or paystub check, reference check, as well as check the person's previous rental history. Ask for 2 months security up front to protect yourself.
Posted by: guest at February 1, 2008 9:03 PM
Seriously, check the archives. There are A LOT of good posts. If you don't find the answers you need, post again.
I'm not being difficult, but I know many folks have answered these questions multiple times.
Good luck to you and go for it.
Posted by: tinarina at February 1, 2008 9:06 PM
What's the upside of finding a tenant without a reputable broker? There's no cost to the owner? Please help me understand the pros/cons?
Posted by: guest at February 1, 2008 9:11 PM
The upside is that you actually get to screen the person - get a feel for them. A broker is simply looking to collect their fee from a renter (the fee isn't paid by the landlord in NYC). If you think that broker will screen people for you, which includes screening people out, you have got to be mistaken - why would they? - they are driven to collect their fee-period. There are many who feel that "reputable broker" is an oxymoron.
Posted by: guest at February 1, 2008 9:30 PM
9:11,
Another upside is that you're cutting your future tenant a break. We just rented an $2,400/month apartment to a nice, young couple. We require 2 months' security, and of course their first months' rent = $7200. If they found us through a broker, that would be another $3456, for a grand total of $10,656 just to get in the door. Pretty steep.
Posted by: curiositykilledthecat at February 1, 2008 9:43 PM
First of all real estate broker gets 6% commission from the potental tenant.
Right there it is an incentive for them to bring any ole person to the apartment for a showing.
It is not about references it is about money.
If you believe in your own ability go with your gut instinct.
The credit reporting agency does all the work for you and the potential tenant writes the check to the agency not you.
Try this:
Here is the name of the credit reporting agency I use
Credit Search International.
Phone number is.... 914-764-0906
Ask for Terry Gray, she will explain it all.
She will take a small owner as a client. They work with all the big r.e. firms.
I am a weenie teenie owner and I use her for years.
The last time I used her was 3 years ago.
Her fax is ........914-764-1701
Posted by: Ysabelle at February 1, 2008 9:46 PM
craigslist. we bought a 2-family in june, held an open house 3 days after closing, and had the tenant moved in and paying rent a week later. we listed the open house on craigslist and had 10 or so people show up. we had difficulty choosing the tenant from a great pool of prospects. the woman we chose is fantastic and our first experience as landlords has gone well. some people use brokers because they think that finding a tenant is a time-consuming, tedious process. that wasn't our experience -- the open house only lasted 3 hours and yielded some great candidates. we found a lease online, modified it for our use, got her references and deposit, and that was that.
as a renter, i hated paying brokers and don't want my tenants to deal with them or pay them. they don't provide enough value for what they're paid.
Posted by: guest at February 1, 2008 9:53 PM
to my 9;46pm response
The commission the potential tenant pays the broker is 15% of the first years rent or maybe one month commssion, it depends.
Posted by: Ysabelle at February 1, 2008 9:57 PM
tinarina 9:06 PM
seriously...maybe they checked and didnt find the answers. i just did and didnt find these questions anywhere. just the usual broker
vs craigslist debate (which looks like where this thread is going)
Posted by: guest at February 2, 2008 2:05 PM
Cg Modern --
If you are thinking about self-listing it might be a good idea to familiarize yourself with NY rental law. Most bookstores have piles of references on this, there's probably a For Dummies Guide to Renting Brooklyn Properties (well you get the idea).
I would point out two items that you should be very cognizant of since they involve large fines if you don't do them right. These are extremely important:
1. You MUST give a lead paint disclosure form to a tenant. The penalty for not doing so is $10,000 for the first offense. More details at:
http://www.cnyc.com/code/newsletters/1996/1996-aut-leadpaint.htm
2. You MUST comply with the Fair Housing Act. If you are renting then you should have this memorized, and it comes up mainly in the wording of the listing. If your ad says "would prefer a female tenant" or "no kids please" you could find yourself on the receiving end of a federal lawsuit.
By the way, with these two points you now know 99% of the real estate licensing exam...
Posted by: Smokychimp at February 3, 2008 12:18 PM
One thing to clarify what smokychimp wrote. While it is illegal under the fair housing act for someone who owns a 4 family or less to advertise a preference for a tenant you can however discriminate in choosing a tenant. Legally the fair housing act's clauses on discrimination only apply to buildings that are not owner occupied or have more than 4 units. If you prefer to rent to someone that doesn't have kids and you have a two family you can do that, you just can't advertise it or say it LOL. Its weird.
Anyway I would not show the apartment to prospective tenants until all the work (or the vast majority of it) is done. I find its usually harder to rent apartments when the work hasn't been done b/c people don't always believe you will do the work. Also even if you do find a renter there can be confusion about what work was promised. Its much better to just have them take the apartment as is.
Posted by: mittens7922 at February 4, 2008 10:16 AM
Hire a broker...
Why waste all your time meeting creepy people? Let the broker do it. Let them run the credit and find you a qualified person. There is so much anti-broker posting on this site...It does not cost you anything to hire an expert who will find you someone.
Posted by: guest at February 4, 2008 11:48 AM
One book I've found incredibly useful as an owner of a 2 family is:
Every Landlord's Legal Guide (Nolo Press)
This book not only covers finding tenants, but also covers a lot of the basic stuff you have to deal with as a landlord. They also include a rental application form, the lead paint disclosure form, credit check form, etc all on a CD. Well worth the cost of the book!
We listed on craigslist and had an open house. I'd recommend having all applicants give you a check for the credit check amount... if you don't run their credit, then rip up or return their check. We had a bunch of well-qualified applicants and ended up going with the first people who filled out an application. They're great tenants.
As far as the lease goes you should use the standard Blumberg form for New York. You can fill out the names online and print it to a PDF. I think it costs about $5 or $10... Make sure to include a rider which outlines any rules specific to your situation or location.
Posted by: guest at February 4, 2008 4:45 PM
i love Nolo Press.
They have self help books on everything related to law.
It is written in simple language.
Posted by: Ysabelle at February 5, 2008 10:00 AM
I have to chime in and say that I am a renter (horrors!) and I did find my place through a broker. Although I did not enjoy writing his check, he did find me a place with a really decent landlord. I know he has found the rest of the tenants in the building as well. Don't forget that it does not cost YOU money and some brokers do actually do some work for the money.
Posted by: Carol Gardens at April 30, 2008 7:02 PM
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