The Pros and Cons of Apartment Brokers

Apartment brokers are one-stop shopping for both landlords and their prospective tenants, marketing properties to people in need of a place to live. For landlords, leasing agents cast a wide net to all sorts of potential customers, and for tenants, they open the doors to homes in all shapes and sizes. Apartment management companies or landlords that choose to lease directly without employing the services of a leasing agent or broker have a narrower scope, but can definitely have their payoffs. See below for the pros and cons of engaging the customer service provider and middle man known as the apartment broker.

Pros: Convenience, Insight,  Objectivity

If you have limited time and resources to devote to finding your next apartment, a broker might be an excellent option. They are frequently commissioned by a wide network of landlords, and have access to properties in different sizes, neighborhoods and price ranges. In most cases, an apartment broker will show you a handful of properties in one visit, with minimal initial input from you. Leasing agents who have been at their job long enough frequently have a great deal of insight to the properties they are showing. They can tell you which landlords are diligent about responding to maintenance requests, which neighborhoods have the best nightlife and which apartments are worth avoiding altogether. In most cases, they are receiving a fee or commission regard less of which particular apartment they are showing, so they have little need to be dishonest and unnecessarily loyal to one place. Meanwhile, management companies clearly have a vested interest in the properties they are leasing directly to you and won’t be as likely to candidly relay its potential downsides.

Cons: Cost, Exclusivity

Like any convenient service, apartment brokers have a price tag. It’s known as the broker fee and usually runs around one month’s rent. Often landlords will pay all or part of the broker fee to leasing agents, making the investment especially worth it for the tenant. But just as often, you will have to pay at least part of the fee or even all of it, an expense you won’t get back like a security deposit. This also raises the already heavy upfront costs of moving into many new places, which usually includes, first and last month’s rent and some form of a security deposit. Many brokers also require to sign a document that states if they show you a property first, you must lease it through them. Be sure to understand the terms with your lease agent to avoid potential fees for violations.

Conclusion

If you have months to dedicate to the apartment search, you might be best skipping out on the hefty fee and individually contacting a range of landlords who advertise their properties directly. Make sure you build into this process the time and effort needed to fully examine the quality of the apartment. Bring friends along for second opinions and research the management company or landlord. But if you’re moving in a rush or know very little about the city you’re looking in, a broker might be worth the investment. They have the experience and insight to limit unnecessary uncertainty.