Weirdest rental situation
Hello there, I’ve run into the weirdest rental situation ever, and could use a reality check. I found a great place in Ft. Greene (my target neighborhood) super close to the park, brand new condo treatment in a floor-through brownstone, with a deck off the bedroom and a shared roof deck. In short, amazing amenities,…
Hello there,
I’ve run into the weirdest rental situation ever, and could use a reality check. I found a great place in Ft. Greene (my target neighborhood) super close to the park, brand new condo treatment in a floor-through brownstone, with a deck off the bedroom and a shared roof deck. In short, amazing amenities, and I’d love to rent it.
The problem is, it is in a condo renovation building and is the only unit of 4 that hasn’t sold. It is a 4th floor walk up, 1 bedroom, and has been on the market for $700,000 since February. I saw it as a rental but now am told that the owners really do want to sell, so the deal proposed is this: I still pay a 12% broker fee, and my moving expenses of course, and $2300/mo rent. After 6 months if it sells the seller would like to option to give me 2 months notice and pay my new broker fee. That’s it.
This seems crazy to me. To consider paying that kind of fee and all the expenses that come with moving knowing that i may only live there 8 months sounds ridiculous. By the same token, the thought that this will actually sell in these times and with that profile seems equally ludicrous. I’m having a hard time walking away as I really do love it as a rental & it’s the best thing I’ve seen and I’ve been looking for over a month, but it is super strange. Thus, I bring it to the awesome Brownstoner community. Thoughts?
I say take this rental (or others), and save the fee altogether:
http://newyork.craigslist.org/brk/abo/905464123.html
Hey all,
I’ve taken all of the recommendations into consideration and it’s helped me come up with an offer that could be fair for all. Thank you!
This doesn’t sound like a good deal or price to me. At all. It is not the same as moving into a brownstone that might be sold. You would be signing a lease with a 2 month cancellation clause, having paid plenty of money up front. In the case of 1 year lease, the owner must honor your lease for that time period whether or not the building is sold. You have rights. If you sign a lease with a 2 month cancellation clause for that kind of money and a high brokerage fee, you are getting ripped off. That is not a good deal. Forget the price they are asking and the sales status. They can lower the price and sell it and then you are out and starting all over again. Will you pay a broker all over again and pay to move again. By the way, the broker doesn’t deserve 12% for that deal.
So these sellers want to offer you no lease really, AND you have to pay a broker’s fee up front, AND you have to have to let them in to show to buyers the entire time you live there? This is the seller trying to have their cake and eat it too.
Nobody here has said much about having to give access to the seller’s broker and to strangers the whole time you live there. Ridiculous. That’s a huge inconvenience. I’d never do it. It wouldn’t feel like your own personal private space at all.
These sellers need to commit to it being a rental and just a rental for a year.
Maybe my math is way off, but if not, your rent is $2300/mo., and with 20% down the monthly mortgage would be just over/under $4,000. From that point of view, it’s hard to picture a sale in the near future (at least, at the current price). I think bricktop’s got it right: try negotiating two month’s notice as well as full refund of 12% broker’s fee at time of notice (not at/after vacancy), six month minimum rental. Maybe even incentive payment if vacancy in less than two months after notice, or penalty if failure to vacate in 60 days.
One more consideration is if Ft Greene is really a neighborhood you love, moving into this place for 1 year could give you a chance to make contacts in the neighborhood in anticipation of finding future places.
Then again, maybe they need to face reality and just rent the apt with a normal lease and not try to sell it.
I would definitely be a hard ass about what you demand, but as long as you’re getting all your extra expenses paid, go for it. Moving isn’t that much of a hassle — if you don’t have a lot of stuff. I moved twice in one three-month period. Just pare down and throw out the junk. It’s like going on a diet. Feels good. Don’t forget the cost of buying boxes twice. But I wouldn’t count on the apt not selling. Maybe. Depends on how unreasonable the price is. Can you rent to buy? Ha. Now there’s a demand. Have you seen anything else this good in Fort Greene? Check the by-owner listings on Craigslist. You will find large floor-throughs as low as $1800.
Find another place. There are plenty of other apartments out there that won’t give you the kind of hassle that this place will.