Market for rental brokers charging 10%?

Yes sure depends on the broker and the brokerage house.
10% would be rock bottom though, you'll find a good shot at 13%.
But if your looking for a studio forget it, it's the same work as looking for a 2 bedroom at already substancially less money.

Im not a broker or the biggest fans of them but you cant expect them to work for free.

work ?

Yes running to 3 / 5 / 10 apartments, cabs, buses, shoe wear, negotiation.
It is considered work.
Mostly simpleton work but yes work. :)

I have a bigger problem with all those empty Access A Ride vans running around EMPTY. Not only that but always going throught the midtown tunnel during rush hour....EMPTY.
I mean why?????

No bias here, I am not a broker so here are my thoughts.

This is even more f***ed up than the sales commission.

Let's say you rent a $3,000.00/month apartment, that means a broker/firm would get $5,400.00. That is almost two months of rent down the drain. Rentals require even less work than the sale, but you get to pay that nice 15% commission. In a city that has an occupancy rate of X% (extremely low), broker's charging 15% is utter bull shit but it is the norm. For less than 4 hours of work, $5,400.00 down the drain.

I really think if one firm focused entirely on rentals and charged flat fees, they could take over the market.

$2,000.00 - $2,999.99 apartment = $2,000.00 Fee

$3,000.00 - $3,999.99 apartment = $2,250.00 Fee

etc.

I understand that there are certain apartments that require more work, but we're talking about walking around the city and showing some people an apartment. Nothing that complicated, nothing that requires hard work. Again, no one is asking them to work for free it just seems like a rip off.

I don't have an issue with brokers being paid I just believe they should be paid by the owners. Being paid on commission means their interests are aligned and it's really the owner who benefits from their services.

The rental broker fee is designed to weed out the not so qualified people. Most NYC landlords want their tenants to be able to pay an additional fee on top of rent. It shows they are financially qualified. Otherwise, you need to move to Jersey, i hear the brokers there charge a half month fee. I think even if a broker charged a flat fee, most people will still want to negotiate it.

Angeloz, how much collusion do you think is out there?

ANGELOZ, cmon man. that is ridiculous. just admit what you said was stupid and we will forget your comment above.

you just got a get out of jail free card

Consigliere
about 2 hours ago
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No bias here, I am not a broker so here are my thoughts.

This is even more f***ed up than the sales commission.

Let's say you rent a $3,000.00/month apartment, that means a broker/firm would get $5,400.00. That is almost two months of rent down the drain. Rentals require even less work than the sale, but you get to pay that nice 15% commission. In a city that has an occupancy rate of X% (extremely low), broker's charging 15% is utter bull shit but it is the norm. For less than 4 hours of work, $5,400.00 down the drain.

I really think if one firm focused entirely on rentals and charged flat fees, they could take over the market.

$2,000.00 - $2,999.99 apartment = $2,000.00 Fee

$3,000.00 - $3,999.99 apartment = $2,250.00 Fee

etc.

I understand that there are certain apartments that require more work, but we're talking about walking around the city and showing some people an apartment. Nothing that complicated, nothing that requires hard work. Again, no one is asking them to work for free it just seems like a rip off.

And co-brokes?

all of you supposedly smart people are really quite stupid. the way the market is set up, we are actually working mostly for the landlords. we pass on their marketing and admin costs, to you, the end user with our fee's, and some of us make a nice living in the process (most don't). you have a choice of paying or not. but understand, you are the lease important part of the equation, in infinite supply, mostly overpaid for the work that you do, and you all want to live in manhattan.

jimbo, i dont disagree with you at all. but angeloz saying that landlords want people to pay some fee to somebody so they know tenants are able to pay is just stupid.

JButton
25 minutes ago
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jimbo, i dont disagree with you at all. but angeloz saying that landlords want people to pay some fee to somebody so they know tenants are able to pay is just stupid.

i have actually heard that a time or two from very old school, very small landlords who were somewhat snobby people by nature. but exception not rule.

You get what you pay for..

Interesting the tenant is the "least" important part of the process.

The tenant i.e. the Demand

The tenant i.e. the Money

Why don't landlords just rent to other landlords, who needs the "least" important?

"I don't have an issue with brokers being paid I just believe they should be paid by the owners. "

As an owner, why would I pay something I can easily do myself? If you think its easy to find an apartment w/o a broker, let me tell you that its WAY easier to rent them...

consigliere, not enough.
jbutton, thats not the sole reason, but landlords have nothing to lose using a broker, it is their way of weeding people out. It is a privilege to live in prime areas of manhattan. Look at Pan am hones, are they a small landlord? old school yes, but their apartments stay rented, very little vacancy. People with money like to know there are some things only they can afford, it makes them feel richer and it creates a certain vibe and demographic in that building.
I do think every landlord should have to pay their broker for bringing them a qualified tenant. I dont think the fee should be on the tenant, after all we are making the landlord money. However, this isnt reality, most apartments, especially unique ones that are in great locations have a broker fee attached to them. Again, this is for the privileged. You can always save money and live in a jacobson property- NOFEE.com, and see what you get.

"I do think every landlord should have to pay their broker for bringing them a qualified tenant."

--I am still waiting for an answer as to why I should pay someone for something I can easily do myself.... The economics are simple. If there is not enough supply and there is a lot of demand for a product (in this case rental apartments), it is extremely easy to "sell" (in this case "rent") them. Why would I need or want to pay someone 15%? (or even have my tenants pay 15% which they *could* be paying to me).

Any owner who is "too busy" and therefore pays for this service is not running their buildings efficiently, and this might just be the tip of the iceberg. To me, finding tenants is one of the most important parts of my business. Not only for financial reasons, but for long term good standing relationships with my tenants......

>> To me, finding tenants is one of the most important parts of my business. Not only for financial reasons, but for long term good standing relationships with my tenants......

MAV, can I be your tenant in my next life? I would so prefer to do business with a hands-on owner like you who values our relationship vs. the corporate landlord who only cares about stated rent roll (as opposed to keeping a quality customer for many years).

If landlords started calling tenants "customers", would the dynamics of the business change?

No idea why brokers get 15%, 10% or even 5%. A trained monkey can do the job. I guess somebody has to pay for the shiny suits the brokers wear.

>jbutton, thats not the sole reason, but landlords have nothing to lose using a broker, it is their way of weeding people out.

Ridiculous
If renters have a certain budget which they all do, then the fee is taken out of the profits of the landlord. If the landlord considers this a marketing expenses that they'd otherwise have to cover in some other form (e.g. up-front tenant incentives, or significant advertising, or having a leasing office, or spending their own time seaching, listing, showing and qualifying), then they can make the economic decision themselves.

As for weeding people out, that's called a credit check, an application, reference checks, etc. They don't need an expensive velvet rope, that's absurd.

>I dont think the fee should be on the tenant, after all we are making the landlord money.

So tell the landlord, and see if you get hired. Maybe a couple years ago, not not, and maybe in a couple years - we'll see.

not not -> not now

Owners use brokers to insulate themselves from the fucking idiots that either look at, or actually apply for their apartments.

I have friends who are leasing agents who earn nice salaries, have benefits, discounted rents and earn "bonuses" when they rent an apartment. Who do you think pays for that?

Mav speaking from the experience of a 5 building portfolio in astoria and forest hills. Not the same as thousands of units in hundreds of buildings.

Downtown, as long as you SHEEP keep writing those fat checks, us trained monkeys will continue to cash them.

>Owners use brokers to insulate themselves from the fucking idiots that either look at, or actually apply for their apartments.

So brokers deal with the fucking idiots?

>I have friends who are leasing agents who earn nice salaries, have benefits, discounted rents and earn "bonuses" when they rent an apartment. Who do you think pays for that?

Sugar mama?

Something wrong with your reading comprehension?

What do you think?

"Mav speaking from the experience of a 5 building portfolio in astoria and forest hills. Not the same as thousands of units in hundreds of buildings."

I do not know where you would get that assumption from. Our residential portfolio is several hundred Manhattan units below 96th street.

I was just starting to actually believe some of the stuff you spew on here, even though you are one of 5-6 people who I actually have on 'ignore' (huntersburg is another).

How do you both have me on ignore and also believe some of what i say? And sorry if i hurt your feelings by mistaking you for a small tome landlord. It isnt as if we know each other (though id be surised if you are who you say you are if we didnt).

hah...hah..

you are the king of not being who you say you are.

loser.

Funny that Columbiacounty calls someone he doesn't like a "king". Maybe he forgot that this country was founded by people seeking to be free of a king.

This thread started out semi-intelligent and then deteriorated fast.
Time for a musical interlude...

Why is it, you pay 5 bucks for coffee rather than .75 or a dollar?
Why is it, you have an I-thingy rather than a clam-shell send and receive phone?
Why is it, you live in Manhattan and pretend to be paid, but complain about how much you spend to live in the greatest urban city in the world?

MAN....FUNK DAT!!!

Move to Brooklyn, Jersey, Idaho or somewhere else already.

I am an agent (BOO! HISS!!! GASP!!! EGADS!!!)
Yes, there are definitely more bad ones than there are good ones out there.

It's really a people thing. Same insults and things can be said for "renters/tenants/clients/owners" when you really look at the big picture overall. Bad people are bad people...period.

Without hurling insults in any direction, jim_hones10 makes a few valid points about how landlords screen people out through us. If we can't tolerate you for four hours or days, why would they want to tolerate you for potentially as many years or more...and possibly your offspring? YIKES!!!

If you want to be in the mecca and live the dream, you play the game the way it's played.

And to the original poster's question, there are some struggling agents out there trying to do that.
The real clients are never truly concerned with a few points here or there for a service rendered.

You have been on ignore for quite sometime (which yes, I realize the irony of responding to you), and I was slowly gaining a little respect for you.

No feelings hurt here, I AM a small time LL, especially in this town.

MAV
25 minutes ago
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You have been on ignore for quite sometime (which yes, I realize the irony of responding to you), and I was slowly gaining a little respect for you.

No feelings hurt here, I AM a small time LL, especially in this town.

because I know what the hell I am talking about.

>I am an agent (BOO! HISS!!! GASP!!! EGADS!!!)
Yes, there are definitely more bad ones than there are good ones out there.
It's really a people thing. Same insults and things can be said for "renters/tenants/clients/owners" when you really look at the big picture overall. Bad people are bad people...period.

Except you said there are more bad brokers than good ones. Certainly you aren't saying that in the general population, more people are bad than good, are you?

I'm sorry, but I just have to respond to the jackass above who wrote

"Move to Brooklyn, Jersey, Idaho or somewhere else already. ...
If you want to be in the mecca and live the dream, you play the game the way it's played."

You are a truly spoiled and entitled individual with a stunning lack of morals.

You speak of "living the dream" in this fabulous "mecca" -- well as a lifelong new yorker, let me tell you that there are QUITE a few jobs in this oh-so-wonderful city do not pay the staggering sums of money that real estate apparently does. And if you think that any of the rest of us have thousands of dollars to pay for you to open a door, wave your arm around, and run a credit check, you are sorely mistaken.

I am one of those people would rather take the time and spend the hours doing the legwork myself, rather than payimg someone to do it for me. And I don't think that makes me a bad person -- I think it makes you a spoiled, entitled piece of shit to think that I SHOULD HAVE TO pay someone else to do it.

And just because I choose not to pay you such obscene sums of money, it does not make me a "weed" who cannot afford her rent. I budget carefully and I only buy what I can afford -- and that includes apartments. To use your example, I DON'T buy $5 cups of coffee and I DON'T own an i-phone... and if it were in any way up to me I would NOT use a realtor --- EVER!!

So to you and all the other realtors who feel that you are entitled to this money (and all of you landlords who have no issue screwing your tenants so that you don't have to be bothered), let me just say that you are a disgrace to society as a whole. I was hoping with the recent real estate crash that your entire profession would go down the shitter. That unfortunately hasn't happened yet, but my fingers are still crossed.....