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If you rented from a "professionally managed" apartment company, it's not always so easy to tell that you're dealing with a broker when you are. The company na

If you rented from a "professionally managed" apartment company, it's not always so easy to tell that you're dealing with a broker when you are. The company name in the fine print of the lease is probably something generic like UDR or AMC or Essex or "Home Properties, Inc" or "Equity Residential". These REITs are brokers: they manage multiple apartment complexes in multiple cities in multiple states: http://www.rednews.com/2014/01/top-10-u-s-apartment-reits-assets/ http://www.rednews.com/2014/01/top-10-u-s-apartment-reits-as... These REITs are constantly merging, acquiring and/or swallowing each other whole, consolidating into bigger and bigger conglomerate brokerages. The bigger they get, the more they can throw their weight around and control rents. Especially in "trendy" markets. They tend to spam craigslist. They tend to require lots of fine print and have fees for everything, with contracts that are far too big and lengthy w/credit and background checks, excessive deposits, always always pet fees, and always at least a year when you sign the dotted line. It's pretty scary what's happening in this niche: it's like they've figured out the trick is to steal any savings you might be able to build (rent hikes ~8 percent or more per year), thus trapping people in rental hell.

mikefivedeuce 11y ago
I wouldn't confuse management companies with brokers and as the REITs themselves own the complexes they wouldn't be considered a broker either. A broker acts as a middle man and pairs a potential renter with a building and collects a fee (which varies depending on the market). They're a third party in the transaction. In Chicago, for example, brokers are compensated by the ownership and it's typically one month's rent. In New York, the renter pays the broker/locator directly. Brokers do tend to spam craigslist and any other avenue because they are motivated to be the first point of contact for a renter. They'll also buy up common domains and adwords to show up high on generic searches like "luxury Chicago apartment". It's not uncommon for them to represent themselves as ownership by using unlicensed pictures and vague wording. I don't think I follow your last two paragraphs. A year is a standard lease because there are significant turn costs when somebody moves out and often the apartment sits vacant for a month before a new tenant moves in. You can usually get a shorter term but you'll pay up proportionately. Pet fees cover the damage that pets often cause and security deposits are heavily regulated in most major cities so that they can only be applied to legitimate documented expenses. In Philadelphia, for example, you are entitled to twice your security deposit back if your landlord doesn't return it with 30 days or provide you with a list of itemized expenses.

mikefivedeuce 11y ago

I wouldn't confuse management companies with brokers and as the REITs themselves own the complexes they wouldn't be considered a broker either. A broker acts as a middle man and pairs a potential renter with a building and collects a fee (which varies depending on the market). They're a third party in the transaction. In Chicago, for example, brokers are compensated by the ownership and it's typically one month's rent. In New York, the renter pays the broker/locator directly. Brokers do tend to spam craigslist and any other avenue because they are motivated to be the first point of contact for a renter. They'll also buy up common domains and adwords to show up high on generic searches like "luxury Chicago apartment". It's not uncommon for them to represent themselves as ownership by using unlicensed pictures and vague wording. I don't think I follow your last two paragraphs. A year is a standard lease because there are significant turn costs when somebody moves out and often the apartment sits vacant for a month before a new tenant moves in. You can usually get a shorter term but you'll pay up proportionately. Pet fees cover the damage that pets often cause and security deposits are heavily regulated in most major cities so that they can only be applied to legitimate documented expenses. In Philadelphia, for example, you are entitled to twice your security deposit back if your landlord doesn't return it with 30 days or provide you with a list of itemized expenses.