Brokers Fee for Rental Unit

Anyone have experience with CitiHabitats finding them a suitable tenant?
The contract they presented us says they will charge prospective tenants a 15% fee instead of the standard 1 months rent.
Is this the norm ?
They also want us to allow them to market it independently for 3months.
Never acted as a landlord, need some info prior to signing a contract.
The brokers claims this is the norm for a private BedStuy brownstone rental
Any advice is appreciated!

ms.engineer

in General Discussion 7 years and 1 month ago

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cate | 7 years and 1 month ago

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I agree with Slopefarm’s assessment and also mozeeatupo’s comment that 90 days is too long. It shouldn’t take longer than a week or two to find a good tenant, and you don’t want the process to drag on longer than a month. Also, one of the reasons I prefer to screen my own tenants is that when I was a tenant I experienced two brokers who were not diligent, including one who told an owner he checked my references and credit when he did not. (They weren’t all like that of course — one in particular was very thorough and the landlord was great too.)

mozeeatupu | 7 years and 1 month ago

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>The only unsatisfactory tenant we’ve had in 20 years came via a broker
How can you blame the broker when you have final say on who the tenant will be? I’ve gotten mediocre prospects from brokers that I turn down and wait for someone better.

NeoGrec | 7 years and 1 month ago

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Bored, I’m glad working with a broker has been good for you. The only unsatisfactory tenant we’ve had in 20 years came via a broker. Perhaps we were unlucky, but I’m just speaking from experience.

slopefarm | 7 years and 1 month ago

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Arguments on both sides of this. We go neogrec’s route and have been happy with the results. That route is not for everyone, for the reasons bored suggests.

helen40

in General Discussion 7 years and 1 month ago

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@neogrec

I completely disagree with your assessment. I don’t have the time or the inclination to screen tenants for the rental unit in my two family home. I let one broker, who I have worked with for years do the work. I have my choice of tenants, never had a problem renting, or with a “bad attitude.”

Most tenants can do the math. They add the cost of the broker into the total net cost of the unit for the year. I also think the fee is an incentive for a tenant to stay more than one year, although we never sign more than a one year lease, as they can amortize the cost of the rental fee over 24, 36 or 48 months.

NeoGrec | 7 years and 1 month ago

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Don’t use a broker! Tenants resent the 15% fee (why wouldn’t they?) but that morphs into a bad attitude towards the owners. List the apartment on StreetEasy. Faster, easier, better applicants. Ask serious applicants to bring their own credit reports. Check references with their previous, not current, landlord. It’s not rocket science and your relationship with your new tenants will be so much better.

mozeeatupu | 7 years and 1 month ago

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I’ve only had exclusives for 30 days. 90 is way too long

ms.engineer | 7 years and 1 month ago

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Thanks very much for the input. I had no idea it was 15% now for tenants

yudashasom | 7 years and 1 month ago

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If the owner pays commission, it is one month, if the tenants pay they are charged 15%. It’s been that way for a while. In the last year or two most apartments are listed no fee to the tenant. Assuming you are pricing at market rate, you might want to pick up the fee on your side to be competitive.