Using Broker to Rent Apt -- worth it?

Damn, I'm about as far from a landlord as you can get, but my first thought is "Who can best screen prospective tennants?" I would imagine there are agencies that do that, but a broker would probably offer screening as part of his/her service. What would be the more dependable, more affordable solution?

Hopefully more specifically experienced advice will be forthcoming.

In NYC, I'd probably use a broker. I've used Benjamin James and have been satisfied. Unless of course you know someone.

Agreed using broker is better way to vet who is applying/looking and mitigates risk of personally inviting strangers into your home and praying they aren't ax murderers or casing the place for a future robbery. On the other hand, if you are seeking to rent a co-op or other unit with a limited period of occupancy available to the renter, the broker's fee of 20% will kill many deals. That is, if you have a co-op you can only rent for 1 year, and you are asking $4500, many potential renters will balk at paying $9000 in fees which would effectively raise the rent to over $5000/mo for them.

why give an exclusive to anyone. You're not paying the fee the renter is. I'd have a few brokers work on it. Why handcuff yourself to one lazy broker who may not do anything for 6 whole months while several brokers will take it on without you signing a contract. Do not I repeat do not sign an exclusive to rent that's just plan stupid.

As an agent, I wouldn't show a rental I didn't have an exclusive on. I'm listing a two-bedroom apartment downtown in a week or two, and I've already spent a few hundred for professionally shot photos, and then I'll be out a little more for the web designer, and this is even before buying ads in the New York Times. No way I would take those costs on spec.

I would argue that that's the best marketing to attract a high-quality tenant who pays top rent, which is what you want. But any agent who would be okay with paying those marketing costs while not being sure they can make their expenses back probably isn't top-flight.

If you're nervous, shorten the length of the exclusive by a month or two.

ali r.
{downtown broker}

nybits.com

seems to me the two big questions are: 1) are you insisting on top dollar (full market value) for the unit? If so, it seems to me you need a broker. If you're willing to lease to a good tenant even a little bit below market (so that the unit's a bargain), you will definitely find tenants, and pretty fast, because even slight bargains are so rare, IMHO. 2) are you planning to pay the broker's fee yourself, or have the tenant cover it? If you'll pay the broker, again, a wider pool of tenants will be interested, and I can't fathom that it would take 6 months to rent it. Nor can I fathom a broker worth his/her salt insisting on a long exclusive in that situation, and 6 months seems awfully long to me. Now, I don't have any experience in your particular situation, so take what I say with a grain of salt.

For years, we have interviewed prospective sublet tenants of our co-op. Without fail, we get better candidates from applicants without brokers. Apt brokers lie to the applicants and to the board on the applications. We look at broker applicants with a hasher eye. There are some pre war rentals where the broker is part of the management company kickback scheme and you have no choice. I would avoid those nonetheless if possible. They are generally equally as difficult landlords. Here are few websites that i am aware which rental direct from the management company. Some are relisted by brokers for a fee. good luck

skymanagement.com/listing.asp
glenwoodnyc.com/Streamline?p=viewPage.jsp&id=4&nid=2
bettinaequities.com/
nybits.com/apartments/
rosenyc.com/
urbansherpany.com/

First, a 6-month exclusive sounds a bit long.

CAVEAT 1: I'd shy away from it, unless you have a really "unique" & expensive apt (aka "hard to rent"), where the broker's additional services (i.e. marketing/advertising) might help leverage your efforts over the 6-month period - think "6 month campaign" help. And beware, all brokers can post a photo/website nowadays, so it's not a sure success. I've seen lazy-ass, broke-ass brokers trying to use the "website" and "photos online" claim as a way of luring in unsuspecting consumers.

Also, good broker should be able to recommend how to distribute compensation & fees according to your Property vs. Specific Market Conditions.

Dollars-and-cents aside, finding the right (prospective) renters and coordinating the whole process takes some effort; logistics of screening & showing can be a huge headache.

CAVEAT 2: "interview" your prospective broker as any other job applicant.
In this day and age where everyone, including their niece/nephew (aka "the next apprentice"), has a real estate license, finding a truly experienced "gatekeeper" to properly screen, follow-up, and "close" your deal will help minimize the headaches.

Thoughout the process of shopping around, you'll get a free education.
I guess that's why you posted this question :)

In my book, good service = better living, and good service is always worth paying for.

Lastly, make sure you have a good fit with your broker.
It doesn't have to be "dinner at 6," but know you have someone on your side willing to work hard for you.

Common sense goes a long way if you hire the right broker.
Good luck!

So the consensus is to use the broker? I am also planning to rent out my condo. I am thinking of using Elliman since I also used them to purchase the condo. Any suggestion on which Real Estate company to use? Any other tips on rental would be appreciated. I'm newbie.

Thanks!

Cough cough. Why pick a firm, rather than a broker? Elliman is just a company. Get a guy or girl you want to work with. Probably someone whose business is 60-80% sales but not exclusively sales. And definitely not someone is exclusively rentals.

blingbling: If you were happy with the Douglas Elliman broker with whom you worked on your purchase, I would advise you to use him/her for your rental. Because you already have a preexisting relationship with them which they will want to continue there is a built in level of trust as well as a greater assurance they will make certain that they provide you with good service.

I've had my rental apartment listed for awhile. It has had several price chops the latest being one where the broker (from a very reputable agency) cut the price without first asking me. The exclusive comes to an end soon at which point I will rent it myself. I have used this broker before and thought this person was honest. Clearly, I was mistaken. It's just the same old-same old. Quite frankly, I will never use the services of a broker again. I've owned real estate for over 30 years and every time I use a broker something shady happens.

--post on craigslist

--host an open house yourself (it will only take an hour of your time

--Select best applicant (you will have several if your are priced right)

Hello. I just wanted to thank everyone for their responses -- have found them very helpful and I think we're inclined to use a broker with a shorter exclusive period.

Thanks!

Yeah Wasabi, good luck with your rental. Let us know how it went!

Why not just sell the apartment?