Agent found a renter. They met to pay the security deposit, first month's rent and agent fee. Because I couldn't be present, I requested photos of the cashier's checks. Agent sent me four photos.
4,700 - security deposit
4,700 - first month rent
4,230 - Agent fee
4,230 - broker's fee
17,860 - total paid upfront by renter before receiving keys to apartment!!!
This is insane!
Why would renter have to pay 4,230 twice?
Shouldn't 10% be 470.00 instead of 4,230?
Shouldn't the broker's fee be deducted from the agent's check?
I'm 100% shocked at how much a renter had to pay in order to live in my building. It just doesn't feel right.
So, let me understand this. Is another renter subletting this apartment from you or are you the renter? Whoever owns the apartment/building is the one contracting with and paying the broker for services. An agent is simply that, an agent for the broker who holds his/her license. An agent, if a state licensed agent can never receive commission from anyone but the broker. What state is this property located in? From what I am understanding, the broker is going to receive a commission of 8,460.00. I am assuming the owner of the apartment is going to receive the first month rent and sec deposit and the renter is paying a ridiculous fee to the broker, right? What is the term of the rental agreement?
So, let me understand this. Is another renter subletting this apartment from you or are you the renter? Whoever owns the apartment/building is the one contracting with and paying the broker for services. An agent is simply that, an agent for the broker who holds his/her license. An agent, if a state licensed agent can never receive commission from anyone but the broker. What state is this property located in? From what I am understanding, the broker is going to receive a commission of 8,460.00. I am assuming the owner of the apartment is going to receive the first month rent and sec deposit and the renter is paying a ridiculous fee to the broker, right? What is the term of the rental agreement?
Ok. I think I have figured it out. I am thinking the term of the lease is for eighteen months. If the monthly rent is 4700.00, 10% of that is 470.00 which is what appears to be the fee the broker will receive for services per month, except paid in full, up front. So 470.00 x 18 = 8460.00. If you add the agents fee and the brokers fee together it is $8460.00.
Why it is broken down, between broker and agent is a mystery to me.