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This is a fallacy, at least in NY. I asked my last landlord about this. I asked "if brokers can't charge renters their fee will you pay it instead?". He repl
by udfalkso 5y ago
This is a fallacy, at least in NY. I asked my last landlord about this. I asked "if brokers can't charge renters their fee will you pay it instead?". He replied immediately, "no way, I'll just ask my nephew to show the apartments instead". I had just paid a 12% fee to a broker a year earlier with this same landlord! Thousands of dollars. The broker did very little for this exorbitant fee, they opened a door for a dozen people maybe, and uploaded a few pictures online. They were simply the gate-keeper and I had no choice in the matter.
The only reason landlords deal with them is that it's easier for them to do so, so why not. It's pervasive enough, as a quirk of history, that it's tolerated. They certainly do not provide value that matches up with their fees in most cases.
Rents may go up, but it will be only a fraction of the insane fees retail brokers in NY charge. It needs to change.
- tut-urut-utut 5y agoThat's exactly what happened in Germany. As soon as the landlords had to pay the brokers out of their pockets, they quickly realized that the "service" is not worth that much for them, so many went without brokers, and the ones that still kept brokers had to pay them much less than before, and the price was related to actual service provided.