When you’re on the hunt for a rental, it can be tempting to jump on a unit designated as a “no-fee” apartment. Who wants to pay extra money for a broker’s services? After all, you already have to worry about paying for your rent and security deposit. As it turns out, there are some reasons why it might make sense to pay a broker’s fee to lock down your next place. When you’re making a large purchase, such as a home, it can be a good idea to work with a financial advisor and make sure your finances are prepared.
1. The Cost Doesn’t Disappear
If you don’t pay a broker’s fee, it doesn’t just go away. The building or landlord is then responsible for the cost, meaning it could be added to your monthly rent. So if you stay for more than one year, you could essentially be paying the equivalent of a broker’s fee multiple times.
To find out if a no-fee option is actually saving you money, you can look up the prices of similar apartments nearby that require a broker’s fee and do the math. Sometimes, a listing price can be cut down if there’s a required fee, so a no-fee arrangement may not offer the savings you think it does. It all depends on whether you’d prefer to pay the fee upfront or over the course of your stay.
2. Brokers Have Knowledge and Access to Units
There’s a reason why these people charge a fee for their services. Finding an apartment on your own can be a real headache that sucks up all your free time. Brokers know a thing or two about the market they’re renting in and understand how the rental process works. They also have access to apartments you might not be able to find on DIY Internet searches.
Brokers can schedule appointments so you don’t have to communicate with landlords yourself. They can go with you to look at apartments and (hopefully) get a sense of what you like and don’t like so they can better tailor your search. Their expertise can also come in handy when it comes to completing all the pesky paperwork you’ll face once you find a new spot.
A broker can act as your expert advocate every step of the way. They can tell you what financial information you’ll need and guide you through the application signing process. If you find a good one and you’re transparent about your needs and priorities, a broker can be a big help.
3. You Can Negotiate Rental Details
What you see is not always what you have to pay. The rental game involves a series of negotiations and the broker’s fee is no exception. Although some more established agencies list set costs, there may be some wiggle room since the amounts aren’t set by law. It might be worth it to try to get a lower price.
You could get lucky if you’re an attractive tenant, financially and from past experiences, or a rental has been on the market for a while. Remember what you have on your side because you can use it to your advantage. If you’ve got a good poker face or you’re not known to back down from a challenge, you might have the ability to compromise or stop the discussion before the broker collects a commission.
The Bottom Line
While it may seem backward, paying a broker’s fee can save you money and lots of stress in the process. Brokers get you access to more potential listings and provide you an avenue to negotiate many details of the rental agreement, from the price to services you don’t want to be responsible for. Not everyone needs a broker, but most of the time inexperienced buyers will want to make sure their interests are protected in a way that only brokers can do.
Tips for Buying a Home
- When you’re renting a home you may want to enlist the help of a professional for guidance on your finances. A financial advisor can help you get your finances in order and make sure you’re making a good decision. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- Before buying a home you may want to make sure you know what you’ll likely pay to take out a mortgage. Try SmartAsset’s free mortgage calculator to get better insight into what your payments might be.
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