Wednesday, November 3, 2010

Broker Fee or No Broker Fee?

So most people assume that brokers fees are pointless and in the days of craigslist and other countless resources, why would you ever use a broker?

Well, I agree that hiring a broker to find you an apartment may not be the wisest move.  However, do keep in mind when searching on craigslist that some apartments work exclusively with brokers and they are the gatekeeper.

This could be perhaps because the apartment is owner -rented (maybe they want to ensure quality tenants and go through a broker?) or simply do not want to deal with showing the apartment themselves.  What I have found is that whether you pay a broker fee or not - usually a "No Fee apartment" accounts for some kind of broker fee within the rent.

I've found the quality of apartments are much higher often when accompanied by a broker fee.  And do remember a broker fee is a one-time event.  So while it is amortized into your rent the first year (that's how I would calculate it) - for every year you live in the unit after that initial year, you could look at it as reduced rent....

Just keep in mind - "No Fee" doesn't necessarily mean it is a better deal.....

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