Most tenants elect for the "no fee" flat route, either via a broker, a landlord, or a management firm. However, is this actually a no fee apartment? Or, should you paid a hidden commission?
"Isn't any fee actually any commission"? "Renters are dumb! They do not understand they consistently pay a commission!”
"Absolutely," Lease Agents provides with a smile. "They believe the landlord is going to consume their fee up? No way get they paid and the tenant pays you every time!” If you are looking for more information about no-fee buildings at Jersey City then you can visit various sites online.
"All these people today need a free ride. However, you know, there is not anything? And if they remain in the flat another year, then they pay the commission! This time rather than coming to me it winds up in your landlord's pocket.
You feel the owner will say: hey, you paid an inflated lease this past year. I'm going to give you that cash back. No way. What do tenants understand?
And these guys, as far as their mindset made my skin creep and re-affirmed why I'm the greatest anti-broker; tenants always pay a broker's commission, if they are aware of it or not.
In real estate lingo that is known as "pay as you move." Except nobody bothers to tell you it is coming from your own pocket.
So, isn't any commission actually no commission? The solution is no.
What causes this hidden fee much more insidious is that landlords and management businesses alter the method by which the agent's fee is paid based on market requirements.
They are not promoted as being "no commission." But, these newly minted "fee" flats might well have been provided lately as "no commission."
Bottom line is that the lease was inflated for the majority of flats in town with these hidden charges. And, if you don't understand the whole rental history of this construction and the landlord's commission arrangement, you cannot even negotiate the excess money they have added on to the requesting rent.
The "no commission" strategy has forced a lot of people from town and maintained many from leasing in town.