I've been living in the same apartment for 3 years. Everytime my rent agreement expires, the broker clinches a month's rent from me.

Can't the landlord pick up this tab or we split it? There has got to be some way out of this.

FYI, this is a Mumbai phenomenon.
Read more
Reply
19 Replies
Sort by :Filter by :
  • Above is news to me ( though, i have read 2-3 similar posts in the forum, but always thought those to be one of a kind cases ) . I have residential properties in Delhi,Shimla & Pune and Thane and commercial properties in Shimla and Delhi .

    Most of these are on rent/lease, but i normally pay 2 months rent as Brokerage if the rent agreement is 3 years or more and 1 months rent as Brokerage if the rent agreement is less than 3 years . If the deal is pretty attractive ( i am being paid an higher rent than the market rate viz. some understanding between the Broker and the employee of the company{in case of Commercial leasing}, i make an exception to the rules ) .

    Once the agreement expires, then there is no role of the Broker and whether the tenant continues is a matter between the tenant and the Landlord . This is pure fleecing that the Broker demands Brokerage every time the agreement gets renewed .
    CommentQuote
  • I guess talking to the owner and dealing directly with him is the easiest way to get rid of such brokerage. One can fake infront of the owner saying that he's leaving the property as he's been made to pay a lot of brokerage and he's not enjoying it. This will make the owner talk to the broker and make some settlement so that he doesnt ask for brokerage which is not meant to be taken.
    CommentQuote
  • The brokers take the commission only from the tenant, not the landlord.

    You could try for a two year agreement. Doubt if your landlord will agree, unless there is a real shortage of tenants.
    CommentQuote
  • The broker can charge only once. At the beginning. He is not adding any value after that.
    CommentQuote
  • Originally Posted by Que Sera
    The brokers take the commission only from the tenant, not the landlord.

    You could try for a two year agreement. Doubt if your landlord will agree, unless there is a real shortage of tenants.


    @Que Sera, I'm not saying brokers take commission from the landlords. All m saying is landlords can try and help us escape from this commission scheme by talking to the broker.

    And in most cases, tenants opt for short term agreements rather than long term once. Because you never know when you get a better option to stay than the current one. :P
    CommentQuote
  • Originally Posted by Chennter
    And in most cases, tenants opt for short term agreements rather than long term once. Because you never know when you get a better option to stay than the current one.

    This is why the tenant is more like a "disposable" friend with benefits and broker is a long time partner.

    I know the landlord should ideally insist on the tenant too not paying for the renewal. But remember if the tenant does not vacate in the renewed period, the landlord is helpless. I know a few cases where the broker muscled the tenants out of the houses they were trying to take over.

    So this is insurance, maybe unfairly, at the tenants cost.

    I know the landlord should ideally insist on the tenant too not paying for the renewal. But remember if the tenant does not vacate in the renewed period, the landlord is helpless. I know a few cases where the broker muscled the tenants out of the houses they were trying to take over.

    So this is insurance, maybe unfairly, at the tenants cost.

    I know the landlord should ideally insist on the tenant too not paying for the renewal. But remember if the tenant does not vacate in the renewed period, the landlord is helpless. I know a few cases where the broker muscled the tenants out of the houses they were trying to take over.

    So this is insurance, maybe unfairly, at the tenants cost.

    I know the landlord should ideally insist on the tenant too not paying for the renewal. But remember if the tenant does not vacate in the renewed period, the landlord is helpless. I know a few cases where the broker muscled the tenants out of the houses they were trying to take over.

    So this is insurance, maybe unfairly, at the tenants cost.

    I know the landlord should ideally insist on the tenant too not paying for the renewal. But remember if the tenant does not vacate in the renewed period, the landlord is helpless. I know a few cases where the broker muscled the tenants out of the houses they were trying to take over.

    So this is insurance, maybe unfairly, at the tenants cost.
    CommentQuote
  • Originally Posted by Malvish
    I've been living in the same apartment for 3 years. Everytime my rent agreement expires, the broker clinches a month's rent from me.

    Can't the landlord pick up this tab or we split it? There has got to be some way out of this.

    FYI, this is a Mumbai phenomenon.

    Yes This is Mumbai Phenomena. I rented apartments in different parts of India .Once my first rental agreement is done, end of broker connection I deal directly with the landlord- EXCEPT IN MUMBAI. The broker in Mumbai will hold you by throat and the land lord too. Firstly, in most cases he won't allow you to directly contact the landlord. The landlord is not much concerned. Cos most cases he has nothing to lose. When it comes to renewal of your 11 months rentals, you end up paying one month rent as brokerage. I dunno why. I think it is highway robbery.

    Even as a land lord, you will end up playing to the broker's tunes. Only in Mumbai.
    CommentQuote
  • Originally Posted by Que Sera
    This is why the tenant is more like a "disposable" friend with benefits and broker is a long time partner.

    I know the landlord should ideally insist on the tenant too not paying for the renewal. But remember if the tenant does not vacate in the renewed period, the landlord is helpless. I know a few cases where the broker muscled the tenants out of the houses they were trying to take over.

    So this is insurance, maybe unfairly, at the tenants cost.

    Originally Posted by velrab
    Yes This is Mumbai Phenomena. I rented apartments in different parts of India .Once my first rental agreement is done, end of broker connection I deal directly with the landlord- EXCEPT IN MUMBAI. The broker in Mumbai will hold you by throat and the land lord too. Firstly, in most cases he won't allow you to directly contact the landlord. The landlord is not much concerned. Cos most cases he has nothing to lose. When it comes to renewal of your 11 months rentals, you end up paying one month rent as brokerage. I dunno why. I think it is highway robbery.

    Even as a land lord, you will end up playing to the broker's tunes. Only in Mumbai.


    Hey, considering what you both have tried to convey, I find myself fortifying my belief that "landlords" look up to "brokers" as their "rescuers" or even more!

    It seems that a fair percentage of them ( just 99% only) are too hesitant to take the reins in their own hands. A lot goes into renting out a property like documentation and timely rents, just to name a few (rent is the only thing actually I suppose). Owners don't want to get into anything that requires an extra effort to salvage (yes, like a sinking ship) monthly rents or in some cases, their properties.

    There has to be a "muscle" to "tussle" for their sake! And who else than those who earn a living out of such?

    Well, in agreement or in discord, we all need the middle man (I am saying that because I need to extend my agreement now to spare myself of the sweet pain of shifting my belongings to another place). :)

    Oh! Time to pay another negligible amount (yes, that's what he has been saying all the time) of money to the broker again! (why doesn't he neglect it if it is so negligible?).

    And no matter how light the conversation may sound, I am actually bewildered.
    (Yeah, for real!)

    Still, on a positive note; Anybody who knows a legit way out?
    CommentQuote
  • Originally Posted by Malvish

    Still, on a positive note; Anybody who knows a legit way out?

    Paying brokerage as per law (If i recollect correctly is max of 2%) pl correct if it has changed. i.e that is what can be charged by a RE registered broker. It however does not mean that it is the amount to be paid.

    Having said that, tenant engagement with the broker on the 1st instance should be clear (before agent showing any flats at all) that you will or will not pay from 2nd year. There are lot of instance where tenant pays only 15 days for renewal
    CommentQuote
  • Originally Posted by Malvish
    Hey, considering what you both have tried to convey, I find myself fortifying my belief that "landlords" look up to "brokers" as their "rescuers" or even more!

    It seems that a fair percentage of them ( just 99% only) are too hesitant to take the reins in their own hands. A lot goes into renting out a property like documentation and timely rents, just to name a few (rent is the only thing actually I suppose). Owners don't want to get into anything that requires an extra effort to salvage (yes, like a sinking ship) monthly rents or in some cases, their properties.


    Rent is not the primary source of income for most landlords .

    When my last tenant gave me the shifting out notice, the broker showed the house to multiple tenants, got the society permissions for shifting out/in, police clearance, documents ready and the registration set up. I spent 25 mins to go to the registrar and sign the agreement which was collected by the broker and given back to me. The house painting between the tenants shifting was supervised by the broker. It is still cheaper to get the job outsourced to the broker rather than take a couple of days leave for these activities. I consider it a favorable trade off if 25 mins is the time cost to shift tenants. My holidays i can use for better things.

    Originally Posted by Malvish
    There has to be a "muscle" to "tussle" for their sake! And who else than those who earn a living out of such?


    I know a lot of cases where the tenants have tried to usurp the flats. The decrepit systems make it night mare to get back what is yours. This unfortunately is a reflection on the entire society. In the latest case, a house was rented by a elderly retired couple who had moved out of Bombay. When they wanted to return back, they refused to extend the lease. However the smart ass tenant has picked up a flat below and was planning to combine into a Jodi flat. So the tenant refused to move claiming lot of money was spent by him on doing up the flat. I do not think the couple would have got flat back in their lifetime. Insurance is always good.

    Originally Posted by Malvish
    Oh! Time to pay another negligible amount (yes, that's what he has been saying all the time) of money to the broker again! (why doesn't he neglect it if it is so negligible?).

    And no matter how light the conversation may sound, I am actually bewildered.
    (Yeah, for real!)

    Still, on a positive note; Anybody who knows a legit way out?


    Get a two year lease. I do that. Saves me even the 25 mins and the tenant money. And if you find a favourable deal, you can give a 3 month notice and walk away.

    The landlord is less likely to force a higher increase since if you walk away, he will incur additional cost of one month rent commissions.

    3 month notice too much.. Sorry you cannot cut your cake and have it too. You can always console yourself that the idiot landlord is renting out at a 2% return and you are the smart one
    CommentQuote
  • Originally Posted by rsrsin
    Paying brokerage as per law (If i recollect correctly is max of 2%) pl correct if it has changed. i.e that is what can be charged by a RE registered broker. It however does not mean that it is the amount to be paid.

    Having said that, tenant engagement with the broker on the 1st instance should be clear (before agent showing any flats at all) that you will or will not pay from 2nd year. There are lot of instance where tenant pays only 15 days for renewal


    Well, I guess you meant 2 months' rent as brokerage. Yes, that's what they can charge at the most, though it is rare (people really don't pay that much at all).

    I am actually very much unaware of the phenomenon of "15 days' rent" being given out. Is it really happening? To be honest, I have never heard of it. If it is for real then there are some lucky guys. :)
    CommentQuote
  • Originally Posted by Malvish
    Well, I guess you meant 2 months' rent as brokerage. Yes, that's what they can charge at the most, though it is rare (people really don't pay that much at all).

    I am actually very much unaware of the phenomenon of "15 days' rent" being given out. Is it really happening? To be honest, I have never heard of it. If it is for real then there are some lucky guys. :)

    It depends on the relationship one has with the broker - 15 days rent for large rental deals or likewise 0.5% brokerage for outright large deals is not uncommon atleast in Mumbai
    CommentQuote
  • Originally Posted by rsrsin
    It depends on the relationship one has with the broker - 15 days rent for large rental deals or likewise 0.5% brokerage for outright large deals is not uncommon atleast in Mumbai


    You are right about the relationship factor. It really turns things around for some. You may be right about large rental deals but I guess residential rentals hardly amount to such an extent and hence brokers may not be that much lenient. How do we go about in such cases? Is there any genuine explanation that can convince the broker for not pocketing in that extra money for another year?
    CommentQuote
  • Originally Posted by Malvish
    You are right about the relationship factor. It really turns things around for some. You may be right about large rental deals but I guess residential rentals hardly amount to such an extent and hence brokers may not be that much lenient. How do we go about in such cases? Is there any genuine explanation that can convince the broker for not pocketing in that extra money for another year?

    People do business for money and not charity - all rentees and owners need to understand that clearly. Will an owner agree to charge pro-rata rent for the period when the rentee goes on vacation and not use the flat or any amenities - no, same way, if one uses the services of any entity/agent/broker, the approach has to be agreed upfront - there is no solution to keep holding grief over what one personally perceives are unfair or extra money charged etc
    CommentQuote
  • Originally Posted by rsrsin
    People do business for money and not charity - all rentees and owners need to understand that clearly. Will an owner agree to charge pro-rata rent for the period when the rentee goes on vacation and not use the flat or any amenities - no, same way, if one uses the services of any entity/agent/broker, the approach has to be agreed upfront - there is no solution to keep holding grief over what one personally perceives are unfair or extra money charged etc


    Yes, right! It should be decided mutually. I guess, there should be better understanding between the landlord and the tenant. If they can strike a chord, overheads can be ruled out, right?
    CommentQuote