Should I use a broker to rent out an apt in my 3 Fam?
I closed on a 3 fam in February, inheriting some tenants on non-stab leases. One group is fine and the other are your typical tenants from hell. Anyhow, much to my glee, the tenants from hell told me they would be moving out when their lease ends May 31. (Before I had the chance to…
I closed on a 3 fam in February, inheriting some tenants on non-stab leases. One group is fine and the other are your typical tenants from hell. Anyhow, much to my glee, the tenants from hell told me they would be moving out when their lease ends May 31. (Before I had the chance to inform them I wasn’t going to renew their lease.) Having never been a landlord, just wondering if I should use a RE broker to find new tenants. I also live in the house. Now, obviously I know I can do it on my own, but after my two month experience with these poopheads I don’t know if I want to weed through all the folks out there. (I’ll still give final say, even if I use a broker.) Anyhow, any thoughts on this? My place is in the South south slope.
To single woman landlord at April 5, 2007 11:19 PM
Don’t be fooled that if someone sued for being rejected (not being allowed to rent your apartment) that the broker would be the only one shouldering that responsibility. You would be named in the suit and I am sure the broker’s contract includes a paragraph that says they are NOT liable.
Also, if you are afraid to be alone with these strangers, some of whom will eventually be living in your home, hold an open house and invite a friend to hang out during the 2-3 hour window when you host it.
And you don’t need to give people all your contact info. Set up a free email account until you are sure who is signing the lease.
I have been a broker and used brokers for rentals. They do not ask detailed questions. You fill out the app, they run your credit, you give them money, done, you get the apartment. Do not be fooled by the claim of altruistic brokers. It’s just like any sales job. Do you trust someone who tries to sell you a car, a tv, anything?
I think 2:16 has some good points and tend to agree that brokers can suck. I have done it both ways (craigslist and broker) with one positive deal with a broker, one shitty, and one positive craigslist experience. I also did both at the same time, when the rental market was a lot slower.
I would recommend craigslist with the warning that people are extremely flakey on there and will waste your time if you don’t control the process. Have them get back to you with their info and set up 15 minute windows on the day of your choosing. Open houses don’t give you the proper impression of the people that might be your tenants.
Another thing to mention is that you can add more to the deposit (i do a month and a half) since they’re not paying a broker.
And of course, make sure you’re set up with applications and a service to do the credit and background checks.
I got pretty good at the craigslist thing, as far as setting things up and what to ask for. I have the emails and the postings saved. If you’d like i can give them to you (post an email).
BTW, I am also a recent 3 fam owner in your neighborhood (almost 3 yrs). Congrats.
I would never use Craigs list or have my own open houses or have people I don’t know coming to my building to meet me alone. I never heard anyone mention this in this debate. I don’t want to be randomly meeting unqualified strangers in my house nor do I want to have to go through the detailed questioning that brokers do. I don’t want to be in the awkward position of rejecting people who know where I live. I don’t want to be in the position of asking all the difficult questions that a broker asks as part of his/her buisness. But mostly I don’t want complete unqualified strangers having all my contact information. I don’t want to be in the position of being sued for rejecting somebody– I may not like them for reason A when I could be accused of not likeing them for illegal reason B. I don’t want to miss anything. How much better to have the broker do all the preliminary work and then meet the person when it appears that they would be good for the house. Even if I wasn’t interested in protecting my privacy and protecting my safety, I also don’t want to be hanging around waiting for tenants to meet me. Regarding the criticism that the broker is picking the tenant not the landlord, The broker is not picking the tenant. I am. If I don’t like the person the broker “picked”, then I would not agree to the tenant. I also found that the tenants that came through brokers were well heeled and could afford the fee.
I would never do FSBO either for a lot of the same reasons.
2:32 You are very small and closed minded and sound like another bitter victim of NYC…to bad.
http://www.craigslist.org
I love that broker’s monologue… Having a real estate broker is NOT the same as having a good attorney or butcher for that matter; Both take more skill…Brokers take the money and run… The system is set up the way; they don’t get paid for time, they get paid to close the deal. Brokers steer clients to the easiest places to rent…
Craiglist….
First I will tell you I am a Broker, over 16 years in Manhattan and do a bit of business in Brooklyn as well. There are good points made here for both sides of this debate. Certainly if you have the time and are very thorough about checking out prospective tenants you can do this yourself. But a good broker will make the process much easier and be able to do all the back ground checks and sniff out any suspicous circumstances. Also I do not agree with the very general statement made about we have no vested interest in the owners we represent. I would not be in business for 16 years if I did’nt have a vested interest…relationships with owners is critical to having a successful long term career. I have become friends with many of the owners I rep and they rely on me to find them good tenants and make sure they are qualified to afford the apartment they are renting. Of course the owner has the final say but it is good to have a buffer between you and your tenant, at least in the begining. For the most part renters in the neighborhoods discussed on this board are affluent young professionals who can afford to pay a broker fee, and most owners are charging what the market will bear not subsidizing rents because most are outrageous by “normal” standards. Although I tend to focus on sales when a person comes to me for an apartment they know they are going to have to pay a fee and simply want good service and to be shown apartments that meet there requirements. Since I have lived in the city for over 24 years I can also help guide people in regards to places to live and the pros and cons that go along with different types of buildings and areas. You can get lucky and find a tenant on your own but I really believe as an owner you will be better served by a qualified broker, ask around do some research on line and interview several. It’s like having a good attorney, butcher or cpa…priceless. Either way you should ask for an employment letter or letter from a CPA, last years tax return, a bank statement, copy of a phto i.d. and a credit report as well as a housing report. Good Luck either way.
Your tenant from hell experience may not end on May 31st, be warned.
Tenants from hell pay tend to look at little details like lease termination dates from their own liberal point of view and often change their mind about things based on their shaky financial and personal situations.
As to the broker issue, do not use a broker. Imagine getting stuck with another bad tenant and telling them that they have to move out after the lease is up, and they ask you to reimburse them for the broker fee because you are unreasonbly terminating their lease after just one year. Not worth it.
By the way south south slope is sunset park.
I have to say that the housing market is such in New York that i think it would be unwise to use a broker. It is expensive enough to rent an apartment that you don’t really need to make the poor tenants pay even more money for a broker.