It’s Always Nice To Get on Good Morning America
I can’t say that every week. I couldn’t say that ever before! So I’ll say again: It’s nice to get on GMA (I show up around 1:26 on the piece, fyi)! Last week, I was speaking to the GMA Crew, including Erielle Reshef, about what can be done to get a better deal on a rental, in a market that is the most competitive in years- if not ever! The short answer? Rent from a single condo owner, and be super qualified and low maintenance. That usually goes a long way to securing an apartment- since the landlord simply wants zero headaches.
But What Else Are We Seeing? Bad Behavior!
I was shocked to hear from a few rental agents who were very public about not sharing their commission. That is to say- they are charging tenants the maximum standard amount- 15% of the annual rent- and not sharing with a co-broker. Here’s an example of what I mean. You email the agent, tell him you have a qualified tenant. You and your tenant knows that the commission is not negotiable. But what we haven’t seen before is when a broker simply will not engage with you, because he or she wants to keep the commission for him/herself.
Isn’t That Illegal?
Yes, and no. If an agent is a part of the Real Estate Board of New York, they have to agree to share commission. If they aren’t, you’ve been transported back to the Wild West, where anything goes. That and a mule won’t always get you an apartment. It’s a little gross. I am not one to hold grudges, but I’m happy to shame these agents here. When the market cools down, and the tide goes out again, it may or may not take these greedy folks with it. I have no idea. Rentals are an ugly business.
What else can I share?
Renters are very frustrated. Nothing to see. One Bedroom apartment are something more than $5000/month. Bananas. Prices are up 30% year over year, and vacancy is DOWN over 45%…
But perhaps the rental market has peaked? We’re see the first “No-fee” offerings in rental buildings popping up- What that tells me is that landlords are likely in the process of either marketing their buildings for sale- and pumping up their top line “rent roll,” – or possibly going to refinance their properties- and doing the same- just for different reasons.
Lastly, This report page by UBS gives a good synopsis of the rental market. I thought you would enjoy this, too!
Have a great month! Call us with any questions about the rental market- one sort of exists… -Scott