Looking for new apartment and have questions about broker fees.Help! Thanks knights.

[higgins3]

So i was just about to sign this lease with 5 of my friends and last minute the real estate agent says he has a broker fee of 4500(1 months rent).

Should i go forward?Is this normal?I feel like he strung us along with the house and go us invested and now he thinks well pay it.

I might just pull out. What do you think?Any advice?

From a former grad-Thanks!

 

[Randal7]

Pretty normal. They get paid by either the lister or the renter. In your case ,its the renter.

 

[RutgersUnion]

Depends where you live. NYC has renters fill out forms identifying themselves and oulining the fees before you ever see the apartment. If it wasn't filled out correctly you can get your fee back years later.

 

[higgins3]

Thanks for the replies. I get the situation, I just think if you work for a respectable real estate firm you should state these fees upfront.

One thing if you're a shady landlord/etc. A nice real estate company like Sothebys?I expected different.

 

[i'vegotwinners]

did you sign a contract with said broker?

if so, what are the terms spelled out in the contract regarding fees on your part?

what do you bet he's trying to collect from the landlord as well?

on a side note, just out of curiosity, how much actual time do you estimate said broker spent on your apt search?

 

[higgins3]

did you sign a contract with said broker?

if so, what are the terms spelled out in the contract regarding fees on your part?

what do you bet he's trying to collect from the landlord as well?

on a side note, just out of curiosity, how much actual time do you estimate said broker spent on your apt search?

Winners, thanks for the reply.The broker fees were not in the lease. He told us we had to have the 4500 broker fee by monday.

A contract wasn't sold with broker. The broker/agent was hired by the landlord.

The house is very nice, 4500 a month but only one of us has ever met the broker. All his work was given by email. At this point, he seems to of got our interest by showing us the house and now threw in the broker fees at last moment because it might have kept him from the sale if he told us early. Not happy about it. Might pull out from the lease. He told us yesterday he wanted our security deposit (4500) and the broker fees(4500) by monday. All graduate students working this summer. Very surprised he wants 9000 dollars in two days.

 

[FanuSanu52]

If the landlord hired him, shouldn't the landlord pay him? Sounds shady. If the fee is not in writing on anything you signed, I'd tell him to go f himself.

 

[MikeRU1766]

What location is this happening in.....NYC/Hoboken/Jersey City I am guessing because that is where I know a lot of people have to deal with "broker fees" as renters.

And obviously this broker purposely did not tell you guys about his fee upfront because he knew that could turn you off. He knows that if you go and look at places and find the perfect place you are now WAY more invested and more willing to pay the broker fee because you are so close to having the place you want.

If I were you.... it all depends on your time frame. If you have time to continue the search for a place then I would DEFINITELY move on from this situation and find another place and be sure to ask any brokers you deal with in they plan on having YOU pay their fees.

If you do not have that time though.... I think the 800 - 900 bucks each to just get your whole housing situation over with and settled might be worth it. But I would definitely be sure to write a written complaint to Sotheby's and also if you are sure that the broker acted unethically I would write to the Real Estate Board of the area and make sure they know that he kind of bamboozled you with his fee right at the end when you were about to sign your lease for your place. And if what he did wasn't officially unethical enough to the point where it is correct to write to the Real Estate Board then I would at least be sure to get on the message boards and anywhere else he tries to market himself and let people know the way he conducts business.

 

[rutgersdave]

Winners, thanks for the reply.The broker fees were not in the lease. He told us we had to have the 4500 broker fee by monday.

A contract wasn't sold with broker. The broker/agent was hired by the landlord.

The house is very nice, 4500 a month but only one of us has ever met the broker. All his work was given by email. At this point, he seems to of got our interest by showing us the house and now threw in the broker fees at last moment because it might have kept him from the sale if he told us early. Not happy about it. Might pull out from the lease. He told us yesterday he wanted our security deposit (4500) and the broker fees(4500) by monday. All graduate students working this summer. Very surprised he wants 9000 dollars in two days.

Back out of the deal and then later on have one of the individual who didn't meet with the broker contact the landlord directly and get an agreement without broker fee.

 

[fischy5000]

In NYC/hoboken area this is pretty much normal...pay up front with broker fee, first months rent, and security deposit. I'd say it's pretty standard that if you are securing a place through a broker you are paying a fee unless it says otherwise.
That being said, if you feel that the broker purposefully held back the info I would say something.
Like someone said above though---if u all like the apt it might be worth it to just pay the fee and be done with your search. If you keep looking u likely will just end up with other places with similar fees.
Depending on the type of place---if you are going to a luxury type bldg u can usually go straight to the mgmt company of the bldg to secure an apt and skip the broker fees.

 

[rutgersal]

900 per person isn't bad at all. If I found the perfect place I'd pay the fee.

 

[Upstream]

if you didn't commit in advace to pay a broker fee to the real estate agent, and there is nothing in the lease about it, then why would you pay it? Just sign the lease with the landlord and move in. What is the broker going to do? You have no obligation to pay his fee.

 

[Pils86]

This is a standard broker fee in NJ, almost always it is payed by the renter. The agent should have told you earlier but if you like the place go for it because unless you go direct you will pay a fee on the next one.

 

[RutgersUnion]

Back out of the deal and then later on have one of the individual who didn't meet with the broker contact the landlord directly and get an agreement without broker fee.

The main reason an owner uses a broker is so they dont have to deal directly with tenants. The owner most likely signed an exclusive and will direct him to the broker.

 

[higgins3]

Hey guys, after doing research yesterday I understand broker fees are common. My problem lies in he fact that I never even met this broker/agent and he sprung it on us the last moment. He also called for 9000 dollars to be due by monday. I thought we would have been given more notice.

 

[higgins3]

The main reason an owner uses a broker is so they dont have to deal directly with tenants. The owner most likely signed an exclusive and will direct him to the broker.

The landlord was the one that showed us the house. We never met the broker/agent. That is my problem.

 

[higgins3]

This is a standard broker fee in NJ, almost always it is payed by the renter. The agent should have told you earlier but if you like the place go for it because unless you go direct you will pay a fee on the next one.

Thing is, if you go through a landlord sometimes they don't charge broker fees. I've had places in the past without them. Only one place.

Not every place has a broker fee. If a place charges a broker fee though, they should be upfront and actually show you the house themselves. The agent wasn't upfront and we have never seen this guy. Just messages through text.

 

[higgins3]

900 per person isn't bad at all. If I found the perfect place I'd pay the fee.

I gotcha.I have some money saved up but am still tight on cash. Throwing an extra 750 on top isn;t exactly what I hoped for. Security deposit is 4500 broker is 4500.

 

[higgins3]

If the landlord hired him, shouldn't the landlord pay him? Sounds shady. If the fee is not in writing on anything you signed, I'd tell him to go f himself.

Gotta figure this part out. I re read the lease and didn;t see the fee on there. He told my friend verbally there was a 4500 broker fee.

I am looking for new places today. If i find something I am going to give the bird and move on.Next time he should be up front and professional.

 

[higgins3]

What location is this happening in.....NYC/Hoboken/Jersey City I am guessing because that is where I know a lot of people have to deal with "broker fees" as renters.

And obviously this broker purposely did not tell you guys about his fee upfront because he knew that could turn you off. He knows that if you go and look at places and find the perfect place you are now WAY more invested and more willing to pay the broker fee because you are so close to having the place you want.

If I were you.... it all depends on your time frame. If you have time to continue the search for a place then I would DEFINITELY move on from this situation and find another place and be sure to ask any brokers you deal with in they plan on having YOU pay their fees.

If you do not have that time though.... I think the 800 - 900 bucks each to just get your whole housing situation over with and settled might be worth it. But I would definitely be sure to write a written complaint to Sotheby's and also if you are sure that the broker acted unethically I would write to the Real Estate Board of the area and make sure they know that he kind of bamboozled you with his fee right at the end when you were about to sign your lease for your place. And if what he did wasn't officially unethical enough to the point where it is correct to write to the Real Estate Board then I would at least be sure to get on the message boards and anywhere else he tries to market himself and let people know the way he conducts business.

Mikeru, thanks for the lengthy post. I definitely plan on filing a complaint. Also, n CL the shady of the shady, landlords post the broker fees in advance.

Now this guy works for a huge firm and he can't tell us upfront? What the heck?

 

[RutgersUnion]

Mikeru, thanks for the lengthy post. I definitely plan on filing a complaint. Also, n CL the shady of the shady, landlords post the broker fees in advance.

Now this guy works for a huge firm and he can't tell us upfront? What the heck?

First thing first, if the house is that good of a fit I would pay the fee so you don't lose it.

File a complaint with the state and unless he can prove that the initial ad discolesed that he was the broker and is charging a fee then you will most likely get the fee back. The ad is the paper trail.

 

[higgins3]

First thing first, if the house is that good of a fit I would pay the fee so you don't lose it.

File a complaint with the state and unless he can prove that the initial ad discolesed that he was the broker and is charging a fee then you will most likely get the fee back. The ad is the paper trail.

Could you go a little bit more in depth with the steps I should take?

The fee is due tomorrow but we're asking for an extension. On friday he told us the lease was finished and he wanted the 9000 dollars by monday.

 

[CodyRU]

The whole broker fee thing is beyond ridiculous. The owner hires the broker to get his property rented, but somehow makes YOU pay him. On principle I have never paid a broker fee. Contact the landlord and tell him to at the very least split the fee with you. He very well might agree to it. After all you are going to be paying him 4500 for 12 months. In the end he's better off having to pay his broker as long as someone moves in. better than it being empty

 

[higgins3]

The whole broker fee thing is beyond ridiculous. The owner hires the broker to get his property rented, but somehow makes YOU pay him. On principle I have never paid a broker fee. Contact the landlord and tell him to at the very least split the fee with you. He very well might agree to it. After all you are going to be paying him 4500 for 12 months. In the end he's better off having to pay his broker as long as someone moves in. better than it being empty

Thanks for the message. I will approach the landlord about splitting the fee with us. If he really wants to sell he will.

Thanks for the advice. Much appreciated.

 

[Upstream]

The landlord was the one that showed us the house. We never met the broker/agent. That is my problem.

Who told you about the broker fee, the broker or the landlord? If it is the landlord, you should ask the landlord to include the fee in the lease agreement. State law requires that the landlord needs to clearly disclose all fees in the lease or in conjunction with the lease agreement.

 

[higgins3]

Who told you about the broker fee, the broker or the landlord? If it is the landlord, you should ask the landlord to include the fee in the lease agreement. State law requires that the landlord needs to clearly disclose all fees in the lease or in conjunction with the lease agreement.

Still gotta ask my friend who told us about the fee. Ill get back to you on this.

 

[higgins3]

I'm not familiar with the Hoboken market, but a broker fee is pretty standard for a $4500 NYC rental. I had a similar experience the first time I rented.

Generally both sides of the transaction pay the broker. I personally wouldn't bother going around the agent to talk to the landlord. From what I've seen, the broker likely has built a relationship with the owner and will still be there long after you've moved out.

If you're able to find another apartment, great. I'm just hoping the same thing doesn't happen on the next one.

The agent might cut their fee slightly if they think you could seriously walk. If it's a hot market though, they'll tell you to go scratch.

Yeah, i found another place but this place is nice. Also, theres about 2000 dollars worth of furniture that the guy is going to leave behind. That is the plus.

So do you think I should ask the landlord to split it with me?

 

[PeteGiam07]

I don't see what the confusion is, just ask to see where in writing this fee is. You can tell the broker you are surprised by it, but I'm sure he won't really care. If the landlord agreed with the broker that the tenant will pay the fee then you are out of luck. No offense, but they will find someone to rent the place out if you don't. Don't think they are too concerned with you and your decision. As far as they are concerned they are still looking for people to rent out the place.

In the landlord business, the first one to pass credit reports (if they do them) and write the checks wins. Plain and simple.

 

[higgins3]

I don't see what the confusion is, just ask to see where in writing this fee is. You can tell the broker you are surprised by it, but I'm sure he won't really care. If the landlord agreed with the broker that the tenant will pay the fee then you are out of luck. No offense, but they will find someone to rent the place out if you don't. Don't think they are too concerned with you and your decision. As far as they are concerned they are still looking for people to rent out the place.

In the landlord business, the first one to pass credit reports (if they do them) and write the checks wins. Plain and simple.

Sounds good. Ill be meeting with them tonight and Ill ask to see it in writing. Any other questions I should ask?

 

[RBS05]

Sounds good. Ill be meeting with them tonight and Ill ask to see it in writing. Any other questions I should ask?

As others have stated, most brokers require you (or the person representing you, which in this case is one of your roommates who met with him originally) to sign something saying they will be paid the fee, even before showing the apartment or giving the address of the building/house. They do this for the exact reason that if you were able to find it on your own, they know you could go around them directly to the landlord/management company and not pay them anything. If you (or someone) signed something, they have a paper trail that will allow them to go after you if you do this.

If they can't produce this, it doesn't mean you will just get the place without paying a fee because the landlord likely won't work with you directly.

 

[higgins3]

As others have stated, most brokers require you (or the person representing you, which in this case is one of your roommates who met with him originally) to sign something saying they will be paid the fee, even before showing the apartment or giving the address of the building/house. They do this for the exact reason that if you were able to find it on your own, they know you could go around them directly to the landlord/management company and not pay them anything. If you (or someone) signed something, they have a paper trail that will allow them to go after you if you do this.

If they can't produce this, it doesn't mean you will just get the place without paying a fee because the landlord likely won't work with you directly.

I will have to ask this when i get a chance. Also, he does work in NY. Not sure if he is licensed to practice in Nj and therefore couldn't take a fee.

 

[RU1977]

Apartments are going for $4500 a month? Sounds like a lot more than a mortgage payment....

 

[FanuSanu52]

In the landlord business, the first one to pass credit reports (if they do them) and write the checks wins. Plain and simple.

May be true in this case, may not be, but definitely not true for all landlords, or much of any in my experience. It pays to look beyond the credit report and find the right kind of tenant.

 

[PeteGiam07]

May be true in this case, may not be, but definitely not true for all landlords, or much of any in my experience. It pays to look beyond the credit report and find the right kind of tenant.

That's what the application is for. Not like there will be going out on dates to make sure the tenant is the "one". lol

 

[FanuSanu52]

Perhaps an example will illustrate. The crazy lady up my street rented to a bunch of post-college frat boys. It's a house in a quiet, residential cul de sac, far from the college and downtown. Any rational thinking individual might have suspected it would be a bad fit, but apparently said landlord was dazzled by the fact that they showed up to the meeting in suits, with a lawyer, passed the credit report and looked great in the application.

After turning the neighborhood into a zoo for a month or two, with regular visits from the police, said tenants were evicted. And apparently they did some serious damage to the house.

Moral: Being a landlord is indeed a business, and that business often benefits from being more selective than FIRST IN!

 

[Rokodesh]

would be shocked if the fee wasn't included in the lease. It should be on the first page with all the fees you're expected to pay upfront

 

[higgins3]

Yeah, this story has taken a strange turn. To be continued.

Roko, only the security deposit was listed in the lease. Supposedly broker fees can be written or verbal.

 

[RU5781]

Any update? I'm genuinely curious.

 

[higgins3]

Any update? I'm genuinely curious.

Ill let you knnow when we have an outcome.

 

[RURahh]

So i was just about to sign this lease with 5 of my friends and last minute the real estate agent says he has a broker fee of 4500(1 months rent).

Should i go forward?Is this normal?I feel like he strung us along with the house and go us invested and now he thinks well pay it.

I might just pull out. What do you think?Any advice?

From a former grad-Thanks!