As you may or may not know, rental transactions are a marginal business for real estate agents. They require many hours, uncertain payoff and a very small commission. However, many agents handle rentals with the knowledge that renters often become buyers at a later date and therefore view it as an investment in a relationship rather than a source of revenue.
It is typical in rental transactions for the tenant to pay the commission or fee (although occasionally, the landlord will pay if the there is much competition or if the property is difficult to rent). Many prospective tenants look for ways to avoid the fee - who doesn't want to save a buck, right? My approach has always been to tell my rental clients about the many ways to rent without paying a commission. I figure that my good advice is as valuable to the relationship as anything else. Here are my strategies for the D-I-Y renter:
- Knock on the door of the superintendent in large rental buildings.
- Call the management company of rental buildings, usually listed in the lobby.
- Drive around looking for "For Rent" signs put out by the owner or manager.
- Craigslist.org
If you have more time than money, these strategies may work well for you. One caveat for craigslist : Be certain that you are dealing with the owner/landlord or a bonafide agent for the landlord. In this recent craigslist post, a person posing as the owner of a Maplewood NJ house has advertised it for rent (at a below market-rate price). The house is not, in fact for rent - but it is for sale.
"Hello I can see you are interested in the ad I have pasted, I am currently in West Africa where I work as a volunteer with the RAFIKI FOUNDATION,here is the site for more detail about why I am here in Africa.( http://www.rafiki-foundation.org/). So I need a tenant to take care of it but since I am out of the state now, I have received some proposals regarding the rent because it is located in a very good area of Maplewood, but I still have to make sure it is rented out to someone who can take good care of it. It includes facilities such as water and heat laundry facilities, air condition, internet and telephone access and a car park and other necessary facilities, also comes with trash collection,pets are allowed as well as long as they are not destructive. so if you know you are capable of the task, get back to me so that I can provide you with some questions that I would want you to answer.below is the location. 101 Parker Ave, Maplewood, NJ."
Sounds vaguely like the Nigerian prince scam. Renter beware.
