Broker asks for $1,000 deposit for submitting rental app

Why would anyone pay a fee for a no-fee rental? Usually in those cases the property owner pays 1 month's rent to the broker. I'd talk to the management company if I were you.

be nervous, run away. don't trust a broker with any of your money.

Well they need to sign a document that will guarantee that you will get your money back if you don't rent.

Tell the agent that you charge a $75 processing fee for time and travel.

Forgot to specify that the $1,000 would be applied toward the security deposit if approved. So it's not a fee at all.
And we *should* get it back if we do not get the apartment.

the way to be sure you get it back is not to give it--dont
pay for the credit check and if nec a small (say 75bux) processing fee
there's no reason they need an upfront deposit to them that will ultimately go to the management company--smells fishy
if they insist and you want to roll the dice, id call the management company and suggest you prepay to them the 1000$ portion of your deposit, also require that you get a letter that indicates clearly that you immediately get back that 1000$ if they ultimatelyopt not to rent to you for any reason
do not give broker one cent

Then what's the worry for?

That's pretty much the standard - the landlords what to see that you put money down to show that you are serious about the apt. Many brokers will ask for the full security deposit, not just $1000.

As long as you get a receipt stating the terms, then you are fine.

*landlors WANT to see

Getting a receipt and getting your money back are two totally different things. I've lived in NYC for 7 years and moved into 8 different buildings and I have NEVER had to pay a $1,000 retainer/deposit so the broker could negotiate rental terms. What if the rental terms are not to your liking? I agree with the majority of people here--this smells fishy. There are a lot of apartments out there--don't buy into the make haste argument. Keep looking.

i think it's a bit iffy - i've never had to come up with a retainer/deposit either. only explaination is that it is 'earnest' money - which in that case you should get it all back not just $900 if the deal should fall through (and btw - shouldn't require a certified check etc --you're not buying the apartment). this provides the agent with negotiating power (ie tenant is serious about renting) etc. again under NO circumstances can they keep 10% of the money.

If its a no fee rental, why are you writing the broker a check???

As an owner, I don't understand how your check to the broker will be come your security....

...and I don't ever ask for a deposit until I accept someone

It's clear the broker is trying to hold onto you. If this apartment doesn't work out, he'll say "I have another apartment for you". Don't do it.

This is just the same as a mortgage broker ordering your appraisal. It's in his name, and if you don't go through him he doesn't have to release it. The whole industry sucks. I'm glad I work in something with a good reputation....finance.

As a broker, I can say that this is okay, and I am familiar with Anchor's practices. They are simply making sure you are 100% for the apartment, and no one's time is wasted, including the landlords. Think of it as a "good faith" deposit. When you are approved/terms met, the money will go towards your security, so you will owe $1000 less. If you like the apartment, don't waste time on this discussion forum, go for it, but only if you're sure you want the place. And also, don't expect more than $50-$100 off the rent, if any. If you arent willing to take it as it is, just in case they will not come down, don;t waste your time, the agents, and the landlords. To sum it up, nothing fishy, this is a common prctice, and it should be done all the time.

NYClvr: so 2006...wake up!

to all you broker scum out there---this is precisely why you're so universally hated. this is a bogus deal--no security deposit without a lease. period. maybe a max $100 app fee for credit check when you have settled on the price. not a cent before. don't be a chump.

not wasting time is so TODAY! Maybe you're "patient" but the market's still moving fast.

NYClvr: Exactly, don't let the agent waste your time, they should be charged a small fee to insure that they are not wasting the customers time.

Our broker asked as for a $500 "refundible" deposit before submitting our application to the management company for a no-fee apt. I told them under no circumstances would I be giving anyone any money. If they didn't accept this, I'd gladly go to another broker who would want the comission without asking for the deposit.

Shortly thereafter the request for deposit was withdrawn.

Wake up OP! This is a renters market. Brokers are like dogs in the streets. They are begging for the scraps. They have no position of power any more.

I agree that agents shouldn't waste clients time, and be upfront with them. But in your point, you're leaving out 2 other parties, landlord/management and agent/broker. And why would someone "charge" an agent a fee for finding them an apartment they like for no fee? It's not really logical. but I guess you're one of those people who can never be happy with what they have. Now that the market is no fee, you're going to ask us to pay you now, you're funny!

The point is simple: There is only one person contributing money to a RE transaction, either renting or buying. This party needs to control the flow of time, events and money. They have been bullied for too long. The market has spoken, things have changed.

I think $1000 negotiating money in a cashier's check isn't unreasonable. Afterall, It demonstrates that you are serious about the place and you're not going to waste the brokers precious time away from feeding pigeons in Central Park while scheming about their next bait and swith. But then again, I'm someone who cuts a cashier's check as a deposit to burger flippers at White Castle so they know I'm a man to be reckoned with before I negotiate extra onions and mustard.
DON"T BE A FOOL!

Again, point taken, I don't "bully" MY clients, and I'd appreciate the same respect, 99.9% of agents are good, its only the small percentage that give us a bad name, and I think its time people realize that and we can all work together to create positive working relationships.

you got it backwards....99.9% of brokers are lying, dirt bag scum. note this thread as evidence. particularly, your own typical scumbag comment.

"As a broker, I can say that this is okay, and I am familiar with Anchor's practices. They are simply making sure you are 100% for the apartment, and no one's time is wasted, including the landlords. "

This is the part that got me.

"And also, don't expect more than $50-$100 off the rent, if any. If you arent willing to take it as it is, just in case they will not come down, don;t waste your time, the agents, and the landlords."

Are you for real?, did you really type that out in the public domain???

Uh oh, we just went into you need a broker versus I don't need anyone. Duck.

No no! Don't give them your money! It's a scam! Run away!

it's an unusual request in this market, and there is no "negotiating money" to has to be deposited in order to negotiate, so I am sure that you can tell your broker that you are not going to do that and he will still make the deal.
on the other side to all the people saying that brokers are "lying dirt bag scum", well thats' not nice and not true as well: many clients make appointments and do not even show up, do not return phone calls, work with brokers and then try to rent the apartmente directly.

some brokers are porbably a mirror of their clients my friend.

I'm an agent. There are a few things that seem a bit off here. First, if an agent requests a deposit (which is normal although this one seems quite high) it should be to hold the apartment pending your application/credit check. This is generally done to protect the landlord that an agent is representing or a management company that is taking your application from pulling the apartment off the market for a period of time and then having the potential renter walk. You need to ask the agent if he exclusively represents the landlord or management and if they are pulling it off the market while they review your application? If not, why are you giving the agent a deposit?

What's also confusing is the need to put a retainer down BEFORE you negotiate the rent/terms of the contract. Again, the deposit should be to hold the apartment pending your application/credit check. If you know your application is strong and you have good credit and the proper income requirement (usually annual salary equal to or above 40X the monthly rent.) then you should do the following: 1. Tell the agent you expect your application to go through but you want to know before you proceed what the rent would be for this apartment. If your agent represents the listings or has a relationship with the landlord or works with the building's management they should be able to tell the powers that be they have a solid application and need to come to agreement regarding the rent prior to running credit etc. This is normal you should be set on the rent prior to putting in an application.

2. Do not give this broker a penny unless they put it in writing this deposit will be fully returned when you are approved for the apartment (that particular apartment) or it will be applied to the one month's security deposit for that particular apartment. I would ask your broker if this landlord/management company takes multiple applications? If they do you really need to make certain it is in writing if they don't choose your application for any reason( not because there is anything wrong with it but because there is a better qualified applicant)your entire deposit will be returned. You also need to clarify with the agent if your credit comes back bad or there is a problem with your particular application what will happen to your deposit, will any of it be returned.

I hope this helps and good luck.

There is nothing wrong with asking for $1000 deposit for working out the lease, BUT it should be $1000 refundable, NOT $900. This is a shady practice and just run away.

Don't pay the ferryman tell he gets you to the other side. Not one cent. If you must put something to hold the apartment *after* the rent has been negotiated, then forget about refund contracts and all that nonsense. Get a cashier's check and hold onto it and present the broker with a XEROX of it to present to the landlord.When the deal goes through they get the cahiers check. If it doesn't, you collect your own refund from the bank reather then waiting on the people who f*cked with you to get around to it.

i love it...even the damn brokers can't agree.

too much inventory, no need for this upfront money - you'll be writing in in a few weeks asking how to expedite getting your doe re mi back. reread the posts here and move along to another unit, another ll.

Absolutely NOT necessary, absolutely NOT common practice, regardless of what other brokers may say. Even in the crappy old days when you had to pay a fee this wasn't done, except by the worse of the worse. Don't deal with this broker, there are lots of apartments sitting vacant.

These aren't the droids you're looking for....

Alternative: give them $1,000 certified check payable to the LANDLORD. This will prove just as much how "serious you are". The LL will not cash the check until you have a deal.

Also, I think there may be some confusion about the $1,000 vs $900 refund. I would bet that the $100 isn't a "fee" for negotiating, but the two $50 credit check fees. The reason I think this is I'm not seeing a request for any other checks for that, even though it is clear it is a "charge" to the tenant.

There we go, another scumbag broker trying to justify how perhaps a rip-off isn't a rip-off.

this one has massive delusions of grandeur.

LIke landlords and their regular brokers don't collude to rip off tenants short-term and then long-term. So obvious regardless of who the check is made out to, if the broker is teling you to not negotiate more than $100 a month, the broker and the landlord are scumbags as is the 30yrs_RE_20_in_REO.

This is a simple practice to get the renter emotionally attached to the property. And yes, it is very 2006. Should not be necessary today.

matteven, you are so obviously a simpleton broker hater that your words are of no consequence and any renter who pays any attention to anything you have to say is probably as big an idiot as you are. You are also totally ignorant as to what the law is if the landlord cashes a check from a tenant. But it doesn't really matter since all you really care about is broker bashing, no need to confuse anyone with facts.

Also, don't put words in my mouth (although I realize this is the only way you can say I'm attempting to rip anyone off) - I didn't discuss in any way the negotiations of price, terms, or anything else.

30yrs, what is the law?

IF you heed the wiser advice of most commenters refusing the 1000 negotiating fee, be prepared to undergo the following ( Perhaps $500 as a middle groud says the broker ):

The door-in-the-face (DITF) technique is a persuasion method. Compliance with the request of concern is enhanced by first making an extremely large request that the respondent will obviously turn down. The respondent is then more likely to accede to a second, more reasonable request than if this second request were made without the first, extreme request. There is also a feeling of guilt associated with the DITF technique of sequential requests (Cialdini, 2000). A person is also more likely to agree with the second request because they feel guilty for having rejected the first request. A reference point (or framing) construal can also explain this phenomenon, as the initial bad offer sets a reference point from which the second offer looks like an improvement.

"30yrs, what is the law?"

If a landlord cashes a check, they have accepted whoever made the check as a tenant. This has been seen on many occasions of both succession rights and forcing LL's to add roommates onto a lease. Although I don't think it's black letter law, a LL cashing your check you would have a REALLY good argument that they have accepted you as a tenant. If you have made an offer, and they have accepted you as a tenant, what does that say?

People are obviously not reading correctly. The $100.00 that keeps disappearing from the balance is obviously the credit check fee of $50.00 x 2 for both of them. The deposit is necessary to show the landlord that you are serious, and that you are worth them not continuing to show and have the agents market their property for potential renters . Every day a landlord doesn't have q tenant is a loss for them fiancially. A significant deposit brings you closer to the end balance, and therefore closer to closing the deal and signing leases. As long as your receipt says you have a refund if you do not get approved, then you are fine. The only time you are not entitled is if you wait until the end of the transaction and are offered a lease signed by the landlord. In which case the agent has done a full job for you and is entitled to a commission, or the landlord can refuse to return the deposit since you have cost him time and money which is only fair . The moral is, don't waste people's time with nonsense . If you want to move, be serious. Don't just shop and waste the time of those trying to make a living and then be afraid because you know you are not really serious .

you guys are seriously making me laugh, let me explain to you how this works, in order for an agent to start the negotiation process with the landlord/management company, he needs to show them that the potential client is actually serious about the apartment, not just somebody that said "ill take it for this and this price" and then walks away, so asking you to put a deposit down of $1000 is absolutely 100% normal, i know this line really really well and its totally what any experienced broker would ask for, obviously u need a receipt stating that if you get approved the money will go towards the security and if you don't then they will return it to you in full EXCEPT application fees, you need to understand that it costs them money every time they run a credit check, so that is non refundable in most cases. iv'e been in this line for 5 years now, no need to run, he's just doing what every experienced broker would, thanks.

Binary options trade is not a risky business only if you can understand the market trend properly and locate a regulated broker to sign up with. I lost over 1.7 euros in an investment trading company called Greenfield Capital , i wanted my money back and the company refused to give me a withdrawal and still wanted me to put more money if i wanted to withdraw .. My Mum introduced me to his recovery agent called hacktools@tutanota.com.. And i gave it a go .. Now i have 80% of my funds back , will be getting the rest this week .. I am so happy and grateful .. Sharing this with the world ..