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IREF® - Indian Real Estate Forum > Real Estate in India > Real Estate Pune > Do brokers charge owners of the apartment in rental dealings?
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Old April 20 2012, 07:38 PM   #1
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Default Do brokers charge owners of the apartment in rental dealings?

I had a quick query.

Do these brokers also charge apartment owners in case of rental dealings? If yes, then is it the equal amount from both the parties (owner & tenant)?

When dealing with brokers a couple of times, I felt like they either charge less to owner or not at all in some cases. They try to squeeze all the money from tenant. But then, its just what I felt. Thus, I would appreciate if any of the members have concrete information.

Thanks

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Old April 20 2012, 08:51 PM   #2
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Put yourself in of a flat owner. If you had a flat, will you rent out your flat through a broker knowing that he will charge you for it?

Unless the flat is in such bad condition or location that tenants are hard to find by, you won't.
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Old April 20 2012, 09:32 PM   #3
 
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Quote:
Originally Posted by priyankt View Post
I had a quick query.

Do these brokers also charge apartment owners in case of rental dealings? If yes, then is it the equal amount from both the parties (owner & tenant)?

When dealing with brokers a couple of times, I felt like they either charge less to owner or not at all in some cases. They try to squeeze all the money from tenant. But then, its just what I felt. Thus, I would appreciate if any of the members have concrete information.

Thanks
In most cases No. All the brokerage charges are usually borne by tenant. In case of resale, broker may charge a certain percentage (1%-2%) of property value. In this case brokerage is usually taken from both parties as brokers are involved in getting the deal through.
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Old April 20 2012, 10:16 PM   #4
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Owner usually pays 15 days of rent to the dealer...
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Old April 22 2012, 04:59 AM   #5
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No - owner is never charged in case of house rental deals. Broker is just trying his luck.

If it was a sale of residential space, sale / rental of commercial space then even the owner would have to pay the broker.

There is no other answer to this question.
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Old April 22 2012, 11:48 PM   #6
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I suggest that you pay the broker and ensure that your house goes on rent fastest as a broker will lease out the flat from where he gets his commission. Secondly its better that instead of your house lying vacant for a month, it goes out on day one and you pay brokerage to your broker. That way he will try to get you a good deal and you dont have to run around for small stuff.
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Old April 24 2012, 11:30 AM   #7
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Why use a broker if your house is in decent shape...simply use , 99acres, makaan, sulekha etc

u will get both direct users plus enquires fm brokers....seeing the response to ur advt, you can decide to pay nominal charges to broker...he in any case is going to get his commision from tenant
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Old April 24 2012, 11:34 AM   #8
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brokers charge from the tenants only... Owners five only when they are out of that town and broker also manages the property on their behalf as far as the maintenance is concerned. otherwise only tenants' blood is sucked by the broker...
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Old April 24 2012, 11:36 AM   #9
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one thing I dont understand is....why do people not use online sites or even their own company internet listings for accomodation listings...that way, wont we be putting an end to broker menace and thereby reduce their black money transaction little bit
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Old April 24 2012, 06:52 PM   #10
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I was wondering the same.
Why don't owners put their properties online instead of giving it to brokers? At least in rental dealings, since buy/sell apartments can be tricky.

Few reasons that I can think of are,
  • 1. Owner is not in town (investment property) and need someone to show the property, handle calls, etc
    2. Since owner is not charged brokerage, why to even take calls from tenants. Delegate it to broker and relax.

If these are the only reasons, then there might be some elegant solutions to this problem. Current online portals aren't that good and a better system can definitely be designed. I was thinking of building one, but for that, I need some honest feedback for the probelm analysis.

I think if someone is taking care of your apartment on your behalf, then half month rent should be enough as brokerage. This will also add more customers to brokers as lot of people would find it worth spending half month rent as brokerage instead of finding property themselves which can really time consuming.
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