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March 27, 2008
Rental Apartment in Brownstone
Hi,
I have an apartment I want to rent in my home. I would prefer to list it with a broker. Any advice or suggestions? Thanks so much.
Comments
Don't bother. Craig's list with a thorough background check is the way to go. Check out the archives for an in depth discussion of this issue. The long and short of it is that you will be able to charge more and get quality people without a broker.
Good luck
Posted by: HomeSweetstuy at March 27, 2008 9:27 AM
where is the apartment located? I think that really determines whether or not it would be wise to use a broker. the truth is brokers are a ridiculous waste of money for rentals. as the property owner if you chose to go with a broker its my personal opinion that you should pay for that decision. I am a renter with great credentials and qualifications and I would never rent from a landlord who wanted me to pay for their own personal decision to be too lazy to screen their own prospective tenants - but thats just me I tend to be wiser than most with my money. back to my initial question, I think people looking in certain neighborhoods are more likely to pay the fee for a broker than others. if your only concern is getting the best tenant because the apartment you're offering is so hot that you can't possibly organize and screen the hundreds of applicants knocking down your door to rent from you then get a broker and pay their fee yourself.
Posted by: guest at March 27, 2008 9:28 AM
That's a great point, I didn't think of it that way...the apartment is in park slope, and since it is in my home, my concern was getting a 'vetted' candidate
Posted by: LandLady at March 27, 2008 9:35 AM
I totally understand your concern. I recently rented one apartment and I used Craig's list and screened the candidiates myself through www.nail.com (National Association for Independent Landlords) and so far (knock on wood), it's working out just fine.
It's a three family house, so I have another apartment that I need to rent, and I will go through the same process.
If getting lots of phone calls and meeting with strangers and doing the background checks yourself is not your thing...then I would suggest you use a broker and like the previous poster suggested pay the broker's fee in full or perhpas partially.
Posted by: faithful at March 27, 2008 9:56 AM
That is very helpful, thank you. I hadn't heard of NAIL, as I am a newbie at the landlord game, I will look into it. Paying the fee myself, or splitting it with the tenant may be a great way to go for me and not something I had thought of before.
Posted by: LandLady at March 27, 2008 10:01 AM
The Nail link is: http://www.nail-usa.com
Keep in mind that unlike listing a house for sale, you can list with a broker AS WELL AS market it yourself. So, it doesn't hurt to sign up with brokers.
Some more resources:
http://reclaimedhome.com/2008/02/27/landlord-resources/
Posted by: rh at March 27, 2008 10:19 AM
again, excellent point, there's a win/win here that doesn't exist in the housing market... Thanks!
Posted by: LandLady at March 27, 2008 10:29 AM
I've listed with Brown Harris Stevens and been happy with the result. It is nice that they market the apt, screen candidates, can show the place all day long, run credit, handle co-signers, etc. We're very happy with our tenants. The process was very smooth and our place was rented in a few days.
Next time I may handle it myself, though. When I was renting, I tried to not pay a fee and when I did, I'd compare the rents as if that fee was averaged across the year. So, if the renter isn't charged a fee, I think you could get a somewhat higher monthly rent than a comparable fee apartment. And since this is ultimately an investment, this would seem to make more financial for the landlord as well.
Posted by: guest at March 27, 2008 10:48 AM
I know of a couple people looking for places in Park Slope.
Would there be a way to contact you and find out more details? You might be able to rent it just from this forum!!
Posted by: guest at March 27, 2008 11:04 AM
The apartment is a newly renovated studio--they'd be the first tenant (more like a junior one bedroom) 500 sq. ft. Private, ground floor entrance, central air, utilities incl. on a park block in north/center slope. $1900 (no fee obviously :-) If they'd be interested, post back and we can work out some kind of contact. Thanks! (no smoking or pets)
Posted by: LandLady at March 27, 2008 12:09 PM
Thanks. That's a little out of the price range for the people I know. We are all mostly arts professional types.
I also live on a North Slope park block and the rents in our brownstone run around 1400-1700 for 500sf 1 bedrooms.
1900 is a bit steep.
Thanks anyway.
Posted by: guest at March 27, 2008 12:59 PM
As a landlord, I think a broker is a great deal. Sure, renters don't like them, but so what? Anyway, it's my opinion that you will get a better quality tenant and have a better experience renting your place out using a broker. First, a broker will put the ad out for you, field the phone calls, make the appointments, and deal with the people who do and don't show up. If you work, that right there is a big, big plus. Second, they will act as a sounding board regarding prospective tenants. One tenant wanted to call around and ask for references about me! (Our broker suggested we choose someone else, and we did.) Third, they will vette the tenant for you, which is a bit of an uncomfortable process since you are asking for a lot of personal info from people you don't know. Lastly, and in my opinion most importantly, if someone is going to go to the expense of paying a broker to rent an apartment, they are probably not going to leave early or after just one year, since they've already paid the broker's fee and doing that every year would be silly. We've used Shaye on 7th Ave. in Park Slope twice with great results both times. Never missed a month's rent in 7 years......
Posted by: slopenick at March 27, 2008 1:06 PM
To the landlord who wrote back, thanks for your thoughtful post, that is the other side of the broker coin.
As for it being too pricey, I think that for what the apartment is, and the included utilities, the price is exactly market based on the research I've done. If I'm wrong, I guess I'll find out pretty soon.
Posted by: LandLady at March 27, 2008 1:14 PM
1900 for a studio in brooklyn???
i pay that for a newly renovated studio in the west village.
Posted by: guest at March 27, 2008 1:28 PM
Another landlord here. If you don't have the time and energy or don't want the bother and hassle of showing it yourself, then of course use a broker. Nothing wrong with that route and there is a lot a good broker can do for you. But as much as the broker represents you, his/her ultimate interest is in closing the deal.
I like showing the rental we have myself, especially since I live right upstairs. I like being able to offer it "no fee" and I like watching prospective tenants look at the apartment. You learn a lot from how they look at the place and the kind (and tone) of questions they ask. Everyone puts on a good face when the broker brings them to meet the owner, but watching them look, you get the real deal. Also, IMHO, disptued by brokers, you can get a small premium for being no fee (I figure about half a month's rent divided by 12 added to the monthly rent). You also learn more about the apartmetn, what people like and do not, you get ideas as to how to market it, you get access to those who only look at the no fee ads, and you find out pretty fast whether you priced it right.
Posted by: slopefarm at March 27, 2008 1:59 PM
as a broker, i would suggest doing what you feel is comfortable.
as a suggestion for a first time landlord and for a building that has a landlord occupancy it is sometimes better to use a broker to maintain that business relationship. people tend to get very personal in the screening process and when the rent is late its sometimes hard to say something because you've made the relationship a little too personal, since you are neighbors etc.
secondly if you are going for something that is a high end rental it is harder to move them on craigslist. it just doesn't attract high end clients. i would suggest the times online.
If you are doing it yourself make sure you are very thorough in your screening process. once you get someone in it is very hard to get them out. ny law protects tenants and not so much landlords. make sure not only to do credit checks but do a housing check! make sure your future tenant hasn't already been to housing court. this will not be reflected in a normal credit report. make sure to get pay stubs, references, bank accounts etc.
also to note on what some of the other comments- you don't have to necessarily pay a broker. usually the tenants do that.
i hope that helps you make a decision.
and if you want you can email with any further questions.
i am being brave here and posting my email address: Victoria@realtycollective.com
i am not trying to get the listing or anything, just trying to be helpful.
Posted by: guest at March 27, 2008 3:28 PM
oh and i agree with the other comments that $1900 seems a little steep for a studio in north slope. how many sqf are we talking?
_-victoria
Posted by: guest at March 27, 2008 3:31 PM
I have never used a broker when renting out apartments in house I live in.
Because meeting and screening tenant myself - get better idea if that is type of person I want living so close - and answering to.
Broker may find someone financially qualified - but only with face to face chat can you make better guess if will be type of tenant that call for you to change light bulb and doesn't bother sorting trash from recyclables and expects every repair to be done yesterday with absolutely no inconvenience to them.
Posted by: guest at March 27, 2008 4:27 PM
As a LandLord with 21 apts and in the business for the last 10 years, I have had only one tenant put in by a Broker.
That turned out the be bad. What you don't get is the personal face-to-face of the prospective tenant to see if they really like the apt or is it the rental they really like.
When it comes time to renew the rent and raise the price, it was my experience that there was a problem because the tenant had to pay a "Broker's Fee" and reminded me of that. Of course, that's not my problem, but I did feel sorry for them.
After that eviction (which I do myself... it's very easy and straight forward if you just do a little bit of research), I have always done my screening dilligently and meticulously. Do not take any short cuts!
This is NYC, if you are offering an apt at the Fair Market Rent (or even slightly above), you will get quite a bit of applicants if you are in a half-decent neighborhood or better.
You can see who will be good for you as personality comes in to play (for instance, party animals and large families with young kids will be good for the ground floor but not for the floors above as they will impact the floor below with much higher noise problems). This will help you in the management as you will have less problems and less complaints (especially about Noise, smoking, loitering, etc.).
My management is extremely easy. I take care of it myself and make sure that I understand the potential tenant's qualifications and personality.
Posted by: guest at March 27, 2008 4:29 PM
We recently rented our 1 bedroom garden apartment in Park Slope within a few hours of showings with people off of craigslist and we're really pleased with the quality of people we got responses from and are renting too. We recently bought our house and it's all really immaculately done, when we bought it we were told it was a 'high end' rental, but with the rental market the way it is, we're renting it for almost $200 below the rental price originally quoted. I also agree that the price seems steep for a studio in Park Slope right now, from my research when we priced out the rent on our apartment. You should be able to tell if the price is too high by the feedback of your efforts.
In terms of finding someone qualified or checking their qualifications, find an online service like the ones mentioned that do background and credit checks. They usually have a reasonable fee. The serious applicants that we had had no problem with the $30 fee or whatever to do this. Many of our applicants also came prepared with w-2's, pay stubs, bank statements, guarantor info if needed etc. You can specify how much and what info you want to assure yourself that you are getting a good tenant.
For us, renting the apartment ourselves was essential because we live on the other two floors and want to feel comfortable with the people. We also share the garden. The broker seems unnecessary both financially and professionally in finding some good renters.
Posted by: MeredithRoseF at March 27, 2008 4:41 PM
Thank you all so very much for your thoughtful responses on both sides of the broker issue. I learned a lot from the collective wisdom, and I appreciate the time you all took to respond.
Posted by: LandLady at March 27, 2008 6:16 PM
Thank you all so very much for your thoughtful responses on both sides of the broker issue. I learned a lot from the collective wisdom, and I appreciate the time you all took to respond.
Posted by: LandLady at March 27, 2008 6:17 PM
I am a new landlord also and have only used brokers to rent out the two apts in my 3-fam. I don't have the time or inclination to be showing the apt to lots of people, collecting all the paperwork, etc. I also have no interest in splitting the fee with the renters. What I have learned through the process is to tell the broker up front that I will not necessarily take the first person interested in the apartment - often with a few brokers competing within one agency they try to go by first come first served - this doesn't work as well for the landlord. I've found that if there a couple people interested it is best to consider both of them and then accept the one that you're most comfortable with. In addition, since I live in the building, I've made a point of meeting and interviewing anyone who I'm considering renting the apartment to. This reduces the chance of ending up with someone you can't stand living in your house - even if they look good on paper and in their references. If you tell the broker these things up front there shouldn't be a problem later on.
Posted by: BklynDahl at March 27, 2008 8:59 PM
I absolutely agree as a landlord that your should get a broker. I have a touch as nuts broker (I know, because he broke my balls before showing me my first apt in the neighborhood that was fabulous) - he is great at vetting and found me a tenant who is amazing. Who cares about tenants who don't like brokers, there are plenty of good ones willing to pay the fee.
Posted by: guest at March 31, 2008 10:43 AM
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