Rental fees for Miami brokers

What does he do to earn the 10%? Does he do background check, help find repair to fix the place when needed...?

I have to pay 60 for a credit check. He will open the door and then lock the door. oh, and advertise.

If the broker got your a good deal on rental income, then yeah, pay him 10%. But if all he did is get you market or below market rates, negotiate. By the way, is the tenant paying a broker a fee as well? Should not double dip.

I'm gonna try and negotiate. It just seems way to much for this market. Thank you for your feedback.

Shop around, then negotiate.

10% of rent is standard for "property management" -- for that fee, I would want the broker renting the place to be the person that the tenant contacts when light bulbs burn out and the toilet breaks.

But if they perform those services, too, then I'd pay it.

ali r.
DG Neary Realty

Cross out 10% and write in 1 month. Return it to him. See what he says.

It's actually pretty close to NYC standards, though. NYC brokers charge 1 month, which is 8% of a annual rent, and he's asking for ten percent of annual.

I always ask my brokers for proof of performance on advertising. That means they send me clippings of every newspaper ad, and stats from websites. If he's truly a pro, he will do this automatically, otherwise ask.

But Watch For This Scam: I rented a beach condo for 6 months, 20+ years ago. We ended up staying two more months, beyond the lease, it was okayed by the broker, so we kept paying the rent to the broker. We woke up one morning because the owners walked in, thinking their unit was vacant. The broker pocketed the extra money and didn't tell the owners we were still there!

Make sure you actually KNOW when it's being rented. Some of those guys will do 1 and 2 month rentals and just not tell you about it.

Remember that in addition to lising, advertising and assist in processing the tenant applicaions, coordinating housekeepers and repair people, preparing the lease as well as dealing with the often not very cooperative condo boards to get the tenants approved, there is almost always another agent involved and therefore it is split to 5% each minus the percentage that the brokerage keeps the agent doesn't end up with very much money on a rental. Many agents do it as a service to their out of town or otherwise incapable buyers and sellers not for the few hundred dollars they end up making on it.

It's not for nothing that Carl Hiassen has a Miami-based novel-writing career.

Sorry folks - just to make sure I understand this thread - owners are paying fees to brokers to rent their places in Miami? Or am I reading this incorrectly?

Does this also mean that potential renters are not paying any fees for finding a rental through the listing broker?

@TMAXJD: Yup, renter pays nothing.

It has always been thus.

common here in Key Biscayne is 8% brokers fee, owner pays.