Posted on 07/03/2022 4:28:13 AM PDT by where's_the_Outrage?
Are you sure it is not an eighteen month lease, because as I illustrated, the math based on that is perfect.
The lease is for 12 months.
470x12=5640
That leaves 2,820 unaccounted for.
So does the renter pay you monthly and I assume you have a lease agreement and in that agreement you have a clause that states you are not responsible for any fees negotiated between the renter and broker. additionally you are not responsible for any representations made by the broker or agent, and that the lease agreement between landlord and renter is the entirety of the agreement.
I am not a lawyer or am I familiar with rental properties in NYC, which I understand can be complex. I assume you have lawyers and I would sure run some of this by them
Exactly, so something isn’t right.
My figures are precise based on an 18 month lease. Is there possibly an option to rent for an additional six months after the first twelve?
Here’s my question: I own a house outright that I bought 12 years ago as a foreclosure. I’m ready to move, but it needs work. I figure 25-30K. It needs new AC, bathroom remodel, all new appliances. It could use new windows, which is not included in that 25-30K. It has carpet over hardwood that could be stripped and re-finished. I have no desire to do any of the work before selling.
It’s in a quiet decent blue collar neighborhood. The other houses for sale are not really updated and are listing for 200-250K which is much higher than a few years ago. There’s not a lot on the market, but there rarely is. My lot is a 1/2 acre, the others 1/4 acre. There’s no garage but a two car carport and a 2 story storage building while the others have one car garages. Mine is 100 years old. The others are 50. Mine has some quirks as it was changed or added onto through the years.
I’ve been getting mail and texts from We Buy Ugly Houses type companies. I want to sell it as it is. I don’t know if wiring is up to code. Can a realtor handle AS-IS houses? Any idea how much of a low ball the Ugly Houses types offer? Or how do I price a FSBO fixer upper?
Thanks for any tips.
You are smart to not make improvements. I am not familiar with your area of course, and not ‘we buy ugly houses’, although I suspect you would receive a very low ball offer. Some of these companies are opportunists, preying on desperate sellers and take advantage of people. What I would do is call three REPUTABLE local real estate brokerages and get three opinions. There are positives for every property, you have a larger lot, hardwood floors, and the 2story outbuilding could be a real asset for buyers with hobbies, small businesses, etc. there are three elements to marketing homes, location and condition which dictates price. It sounds like you will have to adjust price downwards from comps due to the condition.
A few concerns with a 100 year old house, such as lead based paint, asbestos, if you have a basement, radon gas, termites, mold. Not trying to scare you but could become an issue, so be prepared. Another possibility, and I have always suggested this to clients facing major repairs Do you really need to sell to move, it could be a rental property. You could borrow on the equity to finance another home and also have rental income. Just a thought. Good luck.
Oh yeah. If you are searching for a Realtor, make sure they are full time pros in the business at least ten years and depend on their sales for a living. Ask for referrals. It’s important.
Thanks for your advise. I appreciate it.
The lease is for 12 months. I wrote it. Renters signed it.
Did some digging and found their forms on a different website.
They take a 15% fee! GASP!!!
"15% of the first years annual rent for a rental of one (1) year or more"
My guess is broker and agent split it and thus can say they take 7.5%.
So the tenant's actual rent is 5,405 and not 4,700. Insane!
I never thought to look at the fees the renters have to pay. Everyone says the cap is 10%. Wow what a lesson. Now I'll know how to pick an agent. I'm in shock.
It appears the broker/agent is representing the renter, and collecting the transaction fee from the renter, which is exorbitant. I have no idea what NY real estate laws are, but this seems a little sketchy. In almost every state, an agent can not be paid directly by a principal to the transaction. I hope and am sure you have, stipulated in your rental agreement that you are not responsible for any representations made by the broker/agent and that the fees were paid directly to them by the renter as a buyer broker agreement which you are not a party to (or something like that) Over thirty years I have pretty much seen it all and was never surprised if things went sideways. That is why I was meticulous in writing contracts, representing my clients best interest and always thinking ahead of the what ifs. Best wishes.
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