Owning a home isn’t for everyone. More and more people are choosing to rent over buying to cut down on time-consuming and costly maintenance and repairs. And while renting could be cheaper than paying off a mortgage, there are some sneaky expenses that renters might not consider. You might be prepared for a security deposit and the first and last months’ rent, but what about the broker fee? Knowing what this is and who pays it will help you start your renting journey on the right foot. Keep reading to know who pays the broker fee when renting.
What is a Broker?
Finding an apartment or home to rent is challenging. To make the process a little easier, some people prefer to work with a brokerage service to find a place rather than hunting for a home themselves. In this way, a brokerage service acts similarly to a real estate agent. And as with a real estate agent, there are fees involved for their service.
The goal is to make the rental process smooth and streamlined for potential tenants. When you work with a broker, you’ll give them a list of criteria and expectations for your new rental. Then, they’ll find listings that match what you’re looking for and schedule a viewing. They’ll also help you navigate the paperwork and lease information to get the best deal.
Of course, this extensive service isn’t free. Working with a broker can make searching for a rental more convenient, and there is a one-time fee involved, but given the broker (or agent) helps with finding you a place, presents your application in the very best light, smooths negotiations over the lease to arrive at a deal that works for both parties, it might be well worth it. The fee is usually one month’s rent or 10% of one year’s rent, and in many cases, it’s money well spent.
These fees add up quickly, especially when you factor in the deposits and fees you’re already paying for the lease.
Who Pays the Fee?
In general, the tenant using the service is responsible for paying for it. After all, they’re the ones receiving personalized service during their search for a new rental. However, it is possible to negotiate the fee. One thing you can do is ask if the landlord or property owner will pay all or half of the broker’s fee. It might be a long shot, especially in high-demand areas. Still, if the landlord is having a hard time renting out an apartment, or wants to have an exceptional tenant, it may be worth it to them to cover all or part of the fee and fill the unit, and there’s no harm in asking!
Contact Lamacchia Property Management
Understanding the ins and outs of broker fees and other details of renting is vital if you want to get the most out of your rental. For expert advice and assistance, get in touch with Lamacchia Property Management. As a trusted property management company, we know everything there is to know to help you get into your new home!