Any reason NOT to use broker for sublet?

its an easy equation, time vs. money. Which do you value more? You will ultimately pay for the fee yourself, one way or the other.

Hi technologic, my name is Jessica and I am a Senior Associate Salesperson at Citi Habitats. I agree with you that there are both benefits to using and not using a broker. However, you are really putting yourself at a disadvantage by not using one. When using a broker, your apartment will be exposed to the entire brokerage community and thus being able to get the best rent for your apartment. In addition, a broker will also be able to ease the time commitment for your by being able to show the apartment at anytime of the day, financially qualify the best tenant, and take the emotion out of the situation for you.

I would love to discuss your options with you.

Please feel free to call me at 212 434 5206 or jkaufman@citi-habitats.com.

Best regards,

Jessica Kaufman

>>considering that my apartment is the nicest prewar building in a prime neighborhood, potential renters *probably* aren't of the sort who are budgeting down to the last dollar. <<

Rich people are some of the biggest spendthrifts out there... how do you think they got so wealthy in the first place? ;-)

Re: your question--I agree with gcondo. It does depend on how much elbow grease you want to put into this endeavor. Showings, background checks, arranging board interview, drawing up the lease (you'll likely want some riders to the standard boilerplate RBNY version)---all these things will suck up time and energy. If it were me, I'd go with the broker, especially if your apartment is as desirable as you suggest.

If it were a condo and you have the time I would say go about your self. When dealing with a co-op it's much more then just showings. A co-op package is much more in depth then any rental or condo building. When someone is opening up there entire life they would more likely then not love the guidance of a broker who has done it many times before. People when dealing with co-ops expect to pay a broker fee. If the broker is worth the fee they charge they will make the process a very smooth transition for you.

bsolomon--you do not need to present an entire package for a co-op sublet. But the board will require an interview with the prospective tenant.

bsolomon, you would be surprised what a condo board application package can entail. Dont forget, large building management firms convince condo boards to enact an "application" process.

Yep - thats the case. Our board is very flexible in many ways, but they do want to know all about the finances of the sublettor (why I dont know, since its me who takes the risk of non-payment of the rental fee) which is the biggest reason I am leaning toward broker. I know how to do it obviously having gone through it myself, but I don't have the time/desire for it.

The two major reasons not to use a broker are

1) you don't want your tenant to have to pay for the service (which you've already thought about) and

2) you would prefer to keep your own calendar, and you would find it inconvenient to having to coordinate showing times with a broker -- who would always be calling and say "how's Tuesday at 3"?

As to the building, every building's package is different. (The sublet app for Worldwide Plaza has 18 separate forms in it, and that's a condo.) But taking the package off your hands is a lot of what rental brokers do.

ali r.
DG Neary Realty

Hi Technologic,

Maybe it's because I am a broker myself, but I do agree with jlkaufman1. I think that the advantages of using a broker far outweigh any possible disadvantage -- as long as you chose someone who will be respectful of your apartment as well as your time.

It is worth mentioning the fact that throughout my experience as a Real Estate professional I have found that people who are willing to pay a Broker's fee tend to be more qualified customers and more compliant throughout the process which generally makes for a more amicable relationship between Tenant and Landlord throughout the tenancy.

A few other things to consider: Most Real Estate Agents will have the experience and extensive knowledge not only to price your apartment according to what's current with the market, carefully screen the potential tenant before getting to the Application process, but also will be able to offer some creative solutions for any issues that may arise throughout the process because they also have a TEAM of people at their company to assist them with any unusual complications. Having a brilliant Rental Manager who sits on the Real Estate Board of New York certainly came in handy when I was subletting my own apartment and some issues came up with the Board, and I am a seasoned professional!

Most importantly will be the fact that your time and efforts can be better spent doing what you do best and leave the details of subletting your apartment to one of us in the Real Estate community.

Also fair to mention that the sublet tor will most likely be the one paying the Broker's Fee. If your apartment is in a desirable building and priced fairly -- there would be no reason for you to contribute.

Best Of Luck,
Janine Young

Be thoughtful. If you use a broker, pay the fee yourself instead of creating a serious additional hurdue for your prospective tenant who might not even bother to answer an ad for a co-op with a fee. And this puts you in a good position to negotiate a 1 month fee vs 15%

Hurdle

I feel it would be more advantageous for you to do this yourself. By using a broker you are limiting yourself to those potential tenants that want to pay a fee. This will cause your rental to stay on the market a lot longer.You realize that if you list your apt for 4,000 a month the potential tenant needs to pay a whopping 6500 bucks in commissions for the privilege of renting your apt. However, if you advertise the apt. on streeteasy as a no fee not only will more people interested in seeing your apt but you will rent it a lot quicker and at a lot higher rental price. Yes, at a higher price because that 6500 commission bucks equates to about 550 extra bucks a month in the tenants mind. So it's not 4000 per month it's 4550 per month.

How difficult could it be to qualify a tenant over the phone before you show the apt. A few question you need to ask like when do you plan on renting, what are you looking for in an apt and are you familiar with the neighborhood. If you like the answers the tenant give to you over the phone tell him/her you will be having a open house on Sunday. Trust me if they want to see it on Tuesday they will wait till Sunday rather than seeing it with a brokers fee involved.. Have an open house on Sunday and give them a time to meet.In one day if you show 5-8 people the likelihood is that one or 2 will be interested in renting.

If on the other hand you want to use a broker plan on your apt lingering on the market for a few extra months until they find someone willing to pay their fee. Even if they pay the fee they are going to want a lower rent to subsidize the fee.

i'm looking for a very nice sublet in pre-war building on upper eastside/upper westside would love to hear from you.

how about a so-so sublet, pre-gulf war?