Should You Use a Real Estate Agent To Find an Apartment?
Should You Use a Real Estate Agent To Find an Apartment?
It's common for people to say that you should use a real estate agent when buying a house but should you use one if you're looking for an apartment?
Finding an apartment can be a gruelling process. Finding the next apartment or, if you're in for a challenge, the perfect apartment is complicated in a competitive market - where there is a high demand for apartments - prospective tenants will need to navigate a variety of financial questions and configurations for each place they come across.
Apartment hunting is a marathon with the lease agreement as the finish line and your real estate agent like your coach.
Pros and Cons of using a real estate agent.
No one is going to pretend that all real estate agents offer up the same value, some may even waste your time and money but before you make the call, let's go over some of the pros and cons of using a real estate agent for an apartment search.
Pros of using an agent for an apartment.
- Possibly no cost.
This is something many new renters don't usually know about. In many cases, your future landlord will be covering the cost of your agent's commission. As a prospective tenant, this does not come with no responsibility but this is something to come back to later.
The commission amount varies from case to case but it can be equivalent to one month's rent, a percentage of the yearly rent amount, or a specified amount.
The rules are not set in stone from city to city so do some research if you are moving to a new city. In Toronto, for example, using a rental agent costs the tenant nothing. The cost is shouldered by the property owners.
- Familiarity with the process.
This is especially important if this is your first go around the rental market or if you're looking to scale up in terms of rental properties - small apartments don't obey the same rules as bigger ones or ones in more desirable locations.
When asked, many real estate agents will give you a good idea of what an apartment's market value in the current is and how to temper your expectations. They will also help you calculate how you can save money in the long term.
Cons of using an agent for an apartment.
- Potentially not getting an agent.
An agent gets paid based on the monthly rent of a property but new renters choose the cheaper options. For real estate companies, many renters who are looking for the cheapest possible rentals are not worth the time and effort.
Rentals require time from an agent and it's just a matter of deciding whether the potential commission is worth it or not.
- Possibility of extra fees.
On top of a security deposit, first month's rent, and move-in costs, you may have to pay an agent's commission. This tends not to be the case, since the landlord usually shoulders the cost but if you do use an agent it's definitely something worth taking into consideration.
Before panicking, take a moment to look into the local practices since most rentals in big cities tend to mean that the renters will not be paying the fee.
What about apartment brokers?
An apartment broker is an agent who specializes in finding apartments for rent. They have a large database of apartments and can help you find the perfect place to live.
They typically have a deep knowledge of available apartments and the pros and cons of any local apartment complex. Most apartment brokers have good relations with local property managers and management companies which means that they can be aware of apartment listings before they make their way to a multiple listing service.
Keep in mind that a broker's fee needs to come out of someone's pocket and it's best to make that clear before going much further in the transaction.
Tips for finding an apartment on your own.
Should you set out to find an apartment on your own, if you're looking for something relatively cheap in the current market for example, here are some things to keep in mind.
Compare, compare, compare.
An apartment might look very cozy from the pictures but you need to look at other properties that offer similar value for your dollar.
Housing supply is in a stranglehold because of the pandemic and that automatically pushes the price of real estate upward. Without a realtor on your side, it's up to you to find the hidden gems in the market.
Use a spreadsheet.
No, it's not overkill. If you're not using a real estate agent and you will be looking at more than three apartments then it's a good idea to create a simple spreadsheet where you can check for crucial details.
You can note down commute times, features of the buildings and units, and even add a couple of pictures. This will help you balance out what you need and what you can do without - all while avoiding the allure of the way the units are presented online.
Go straight to the management company.
One thing that most people don't know about is that you can get in touch with a property management company directly. This means that they will show you around the rentals that they own, whether that means a new apartment or a slew of new listings. This could greatly cut down your search time if you do the research.
Of course, you need to be on your guard and well-informed to know if an apartment is worth what the property manager says. Prospective tenants going through this option need to be armed with knowledge before being lured in by big promises. Get familiar with the terms, the market, and the company itself.
The more work you do, the more value you will get.
How to find the right type of rental property that meets your needs with a real estate agent.
An agent is there to save you time and help you sniff out the best properties available. This doesn't mean that they're mind readers.
When working with real estate agents you need to communicate clearly. You don't want to find yourself in an expensive two-bedroom that's fine with pets when you're living alone and trying to save up for a home where you will have no pets because of your allergies.
Most renters make the mistake of being led by the agent when in fact all this does is burn up time. Searching for a new home is about finding the right fit and it's best done when you tell your agent things like whether you need a unit on the ground floor or require an indoor parking space.
The bottom line is simple: communicate.
What's the final answer?
Using an agent as a renter is a good idea. Take a look at your local real estate practices, or better yet just ask, to find out who pays the agent's commission.
Whether your lease renewal is coming up or you're moving to a new neighbourhood, it's never too early to find an agent to help you find an apartment. A lease is something you should sign with eagerness, and an agent can help you find the right apartment for that - possibly for no cost to yourself.
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