How to protect your commission?

Option 1. Finding tenants through an agency.

The most popular method on the market. In this case, the Agency selects residents. As a rule, the commission in this case is paid by the residents (there are exceptions in cities). The commission can range from 30 to 100 percent depending on the class of housing and the company’s pricing policy. If the realtor is sure that the price of the apartment is adequate and the owner himself will not place the advertisement, then the commission may be increased.

Pros : in this case, the owner does not pay for anything and gets tenants.

Disadvantages : with this approach, the agency is interested in the tenant moving in as quickly as possible, so you shouldn’t rely on the realtor checking the tenant in this option. It is also possible that they may hide negative information about the tenant from you, just so that the deal goes through. Further work with such residents is already on the shoulders of the owner.

Recommendations : Choose your realtor carefully (look for reviews on the Internet or ask for recommendations). Make sure that he has been working in the market for a long time; such agencies protect their reputation. And another life hack - tell the realtor that you plan to rent out the apartment for many years. If an agency (or a private realtor) is interested in long-term work with you, then a minimum selection of residents will still be made. If the intermediary offers you to use his own version of the contract with the tenants, then double-check it carefully. As a rule, in this case, the agencies do not bother to study the legal basis of your interactions with residents. Often the standard forms they offer may not take into account your interests or may simply be invalid, as they contradict the law.

Is it worth renting an apartment through an agency: pros and cons – Plus/minus

On the one hand, renting out an apartment through an agency is a very profitable option for the owner, since realtors provide advertising instead, and the fee for the agency’s services is paid by the tenant himself. However, renting an apartment through a realtor also has its disadvantages. Therefore, before concluding a contract, you need to weigh all the pros and cons, which are described in detail in the material.

Previously, we talked about the risks of renting an apartment without paying taxes, we recommend that you read this information here.

Step-by-step instructions for delivery

Regardless of the choice of a specific method of renting out real estate, the sequence of actions will look approximately the same.

First, you need to think over all the details of the future contract, prepare the premises, then decide on the category of tenants and start searching.

The final stage is signing a rental agreement (also called a lease agreement), receiving 1 month's rent and handing over the keys.

Step 1. Preparing your apartment: 5 ways to increase your rent

Obviously, it is in the interests of the owner to rent out his home for as much as possible. To do this, you need to prepare the apartment for occupancy:

1. First of all, you need to take care of your appearance. Before searching for clients, they carry out general cleaning, wash curtains, wash windows, chandeliers, and, if necessary, ceilings. The appearance should attract the resident, and not repel him.
2. It is also better to bring all the necessary furniture and household appliances into the apartment. The minimum set is a refrigerator, stove, washing machine, sofa, wardrobe, table, chairs, TV. Typically, properties without these items are rented at significant discounts. In addition, there are a lot of options on the market, so it is usually not difficult for a tenant to choose a more suitable offer.
3. It may be better to replace some of the furniture with new ones, and you can buy it in inexpensive stores, so the investment will pay off in a few months. It is best not to clutter the premises with old things and especially with personal items - photographs, paintings, etc.
4. You also need to take beautiful, informative photos of each part of the apartment - room, kitchen, front door, etc. Photos must be of high quality, and it is best to take them in sunny weather.
5. If the condition of your home is unsightly, it is advisable to make inexpensive cosmetic repairs. New wallpaper and ceilings greatly improve the view and increase the rent accordingly. The old design, on the contrary, repels most tenants.

Of course, you don't have to do all these steps. However, the owner must check all communications and, if necessary, make urgent repairs in order to avoid leaking pipes, overloading the electrical network, etc.

Previously, we gave a legally correct example of drawing up a rental agreement for a room in an apartment; you can read it here.

Step 2. Determining the number of tenants

This is also a very important point that needs to be thought through in advance. It is no secret that all experienced realtors and landlords in general distinguish several categories of tenants.

The most prosperous are considered to be married couples where each family member works. Another popular option is a female student (1 or 2).

However, a company of 3-4 people, on the contrary, is not the best option for obvious reasons.

Less desirable categories:

1. Couples with small children.
2. Couples or single residents with pets.
3. Young people, students.
4. Lonely people, especially men.

They also pay attention to the origin and appearance of a person. For example, very often in advertisements for ethical reasons you can find the wording “only for Slavs.”

Obviously, the least desirable category is a company of several men of suspicious origin.

Therefore, most often preference is given to families, who almost always lead an adequate lifestyle.

Previously, we gave an example of a correctly composed advertisement for renting an apartment; you can view and study our recommendations here.

Step 3. Contacting the agency: sample contract

The next stage is the actual active search for potential tenants. If the homeowner does this on his own, he places advertising at his own expense and waits for calls, and then schedules face-to-face meetings.

If the apartment is rented through an agency, you first need to negotiate the terms and conclude an agreement for the provision of services. It’s better to do this at home, where you can invite a realtor.

This option is more convenient because:

• the agent will immediately inspect the premises and give a preliminary assessment (approximate rental rate);
• It will be psychologically easier for the owner to communicate with a realtor at home.

If both parties are satisfied with all the details of the agreement, they sign an agreement on the provision of paid services.

The name of the document may be different, but its essence is the same - the realtor undertakes to find a tenant within a specified period of time, assumes all costs associated with advertising, and the owner undertakes to rent out the apartment through this agency. The agreement has a standard form and contains a description of the rights and obligations, responsibilities of the parties, the period for the provision of services, etc.

It is important to understand that signing an agreement is in the interests of not only the agency, but also the owner himself. It is highly not recommended to transfer documents or, especially, funds to an agent without signing an agreement.

In addition, the realtor's remuneration comes from a commission paid by the tenant.

Therefore, any requests for an advance and other attempts to obtain money can be considered obvious signs of fraud.

How to rent an apartment through a real estate agency: pros and cons

Renting residential real estate has long become a familiar procedure for many categories of citizens who want to solve their housing problem for a long or short period. Lux Apartments specialists are ready to share their competent opinion, revealing the pros and cons of renting apartments through agencies.

Renting apartments in large cities has long been no longer considered an exclusive procedure. A huge number of people actively use the services of landlords for various reasons.

These include people traveling around the world, doing business, not wanting to acquire their own real estate, and connoisseurs of an independent lifestyle.

Moscow occupies a prominent place in the list of popular cities, which year after year is becoming more and more visited by Russian citizens and guests of the country. This is why rental housing continues to be so in demand and popular in the capital.

Arriving in Moscow, you can stay in a hotel or use the services of private rental companies. The Lux Apartments agency advises you to turn your attention to the second option for resolving the housing issue with the help of experienced professional intermediaries.

The employees of this company know everything about the needs of demanding clients who want to surround themselves with decent living conditions. This is where they will help you rent an apartment with hotel service, which involves combining all the advantages of private living and guaranteed comfort. Let’s try to understand in more detail the advantages of renting housing through an agency.

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Advantages of renting apartments through a real estate agency

Anyone who has ever started looking for a rented apartment can confirm that this undertaking is quite labor-intensive and troublesome. Its successful implementation requires a lot of time, effort, simple luck and the use of subtle intuition, which can be very useful when it comes to unreliable landlords.

Many people, having realized that there are a number of difficulties associated with finding temporary housing on their own, begin to think about how to rent an apartment from an agency. And they do it very correctly. The decision to use the help of professional intermediaries who are well versed in the real estate market has significant justifications.

An experienced realtor working in an agency that respects itself and its clients:

• will undertake the search for options that satisfy the expressed requests;
• organizes a viewing of the apartment, guaranteeing the accuracy of the photographs, or with personal participation;
• will check documents confirming that the declared owner of the apartment is indeed real;
• will negotiate with the owner, taking into account first of all the interests of his client;
• will indicate the presence of nuances that may indicate the unreliability of the option being viewed;
• If the consent of the parties is obtained, it will help to draw up and sign an agreement.

The apartment tenant will receive the necessary support from the beginning to the end of the process, which will ensure the guaranteed safety of their money, personal safety, and a good prospect for future living in favorable conditions.

Cooperation with a professional intermediary will allow you to count on the fact that in the event of changes in rental conditions or force majeure circumstances, the client will be moved to another apartment with similar characteristics. Some agencies practice compensation for the difference between the initial rental price of the property and the newly declared price before the end of the contract between the interested parties.

An important factor that invites you to cooperate with an agency is the efficiency of its work and the variety of options offered. You can also quickly find a lot of offers on the Internet.

But who will give you a guarantee that the apartments will be real or match the descriptions? Photos on websites are often outdated. The terms of the lease are tempting, but clearly subject to careful double-checking.

As a result of such contacts, you will lose a lot of valuable time and will not resolve the housing issue at the appropriate level.

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Disadvantages of renting apartments through intermediaries

Before renting an apartment through an agency, carefully read the pitfalls that may await you when interacting with unscrupulous companies.

You must remember that when you turn to professionals who care about their reputation, you are guaranteed to receive the full range of declared services.

From the moment of processing the information received from you to the stage of handing over the keys to the rented apartment, the realtor constantly accompanies his client.

The amount you pay at the end of this journey for the services provided is agreed upon in full and in advance.

You should be concerned if:

• the realtor asks to pay him the required fee before concluding a lease agreement;
• he offers to sign this agreement in the absence of the owner and pay the rent through the company;
• the real estate agency demands payment for the provision of supposedly additional services at the intermediate stages of joint work;
• the company announces low prices that cover the costs of supporting the client;
• you are not introduced to the text of the agreement concluded between the client and the intermediary company, or no guarantees of the success of the future enterprise are voiced.

Source: https://narobraz.ru/krasota/stoit-li-snimat-kvartiru-cherez-agentstvo-plyusy-i-minusy.html

Option 2. Rent out the apartment with the help of a manager for a percentage.

Essentially, you hand over the apartment to management, and the keys are also handed over to the manager. All rights to housing, including visiting it, remain with you.

Pros : you relieve yourself of all worries. Search for tenants, their selection, conclusion of contracts, control of all payments, minor repairs, control over the safety of property. All this is no longer your concern. Serious agencies are in touch 24/7 so that they are ready to go to the address in case of any problems.

Cons : You pay interest every month. Typically this is 10% of the tenant's rent.

Recommendations : There is a phrase “the devil is in the details.” Be sure to carefully research the agency's reputation and time in the market. After all, you are entrusting not just the search for a tenant, but, in fact, your property. Carefully study the agreement that will be concluded with you and that will be concluded with the tenants. If there are contradictions in the agreement or it is not detailed, this means that the manager is working superficially and does not bother with details. Study your rights to visit housing and contact residents, the procedure for terminating the contract, and the procedure for accrual. Ask how the manager resolves the issue with debtors who have moved out, and whether he has any judicial practice. Give preference to those companies that concentrate on this way of working and do not engage in other activities.

Our company works this way. We hope this did not affect the objectivity of this article)).

Renting rules: how to rent an apartment through a real estate agency

For those who are faced with renting an apartment for the first time, having to pay a realtor can be an unpleasant discovery.

Real estate agencies have long and firmly occupied the real estate market in large cities and more than 80% of all advertisements for apartment rentals are placed by them . It is much more difficult to rent a house for a long time from the owner, but it is possible if you try. Why then pay a realtor?

Pros and cons of renting an apartment through an agency

Let's start with the positives.

Reputable real estate agencies specialize in the full management of the property, from the moment the transaction is concluded until the end of the lease term specified in the contract.

For example, if the owner decides, “at the behest of his left heel,” to increase the rental price before the end of the contract, the tenant can contact a realtor and he, in turn, will either influence the owner or find the client an apartment of a similar price without a commission.

The same applies to unauthorized eviction: by concluding an agreement with an agency, the tenant can be sure that the owner will not suddenly have relatives from the Far North come to him or he will not decide to urgently sell the apartment.

Another plus is the speed of resolving the housing issue.

You can search for housing from the owner for a long time and without success, but the real estate agency will immediately offer options to suit the client’s requests and his budget. If housing is required, for example, in an unpopular area or special conditions are imposed on it (a two-level apartment is needed, only on the first floor, etc.), the agency staff will begin an intensive search for it.

Cooperation with an agency also frees the tenant from a lot of smaller hassles. The realtor coordinates with the owner the time to view the apartment and even finds out who lives next door, if this is important to the client.

The disadvantages of individual agencies include the fact that they only work with open databases.

The same property may be in circulation with several agencies, and while one realtor is negotiating a deal, the second will quickly rent out this apartment.

Also, some agencies offer only the selection of housing, without accompanying the transaction, that is, in case of disagreements with the owner of the apartment, the realtor washes his hands.

What should you pay special attention to?

There are dozens of real estate agencies operating in Moscow and other large cities of Russia.

The following are considered evidence of the reliability of a particular AN:

• Separate agreement. Some tenants, due to inexperience, believe that the lease agreement is also proof of the transaction with the real estate agency. This is not so: in addition to the rental agreement with the owner, the client also enters into a service agreement with the agency.
• Fixed commission. The amount of remuneration to the intermediary may vary depending on the rental object, but it must be specified in the contract.
• Payment of commission after check-in. Agencies that value their reputation take money for their services only after a deal has been concluded between the client and the homeowner.

Shell companies that engage in real estate fraud often rent tiny offices with a minimum of furniture and equipment. Also, dishonest realtors often ask for money for their services in advance.

This is exactly the wording that appears in the contract that the agency concludes with the client.

Services mean the provision of information about rental properties, most often in the form of an extract with addresses and telephone numbers. The realtor does not go to viewings with the client and does not negotiate with the owner of the property. In essence, for your money (sometimes considerable) you just get a list of phone numbers that are either silent, or it turns out that the apartments have already been rented out.

Real estate databases

There are two types of databases that real estate agencies work with: open and closed.

• Open ones are posted on specialized resources like Navigator or Domofond and are available for review by everyone who visits the site. Ads from open databases, in addition to their main purpose, serve to advertise a particular agency, informing potential clients about its existence.
• Closed databases are lists of objects available only to realtors. Such lists are collected bit by bit by agency employees from various sources. Some homeowners turn to realtors themselves, with the condition that the address and photo of their home will not “walk” on the Internet.

"Inkom-Real Estate"

The agency has been operating in the capital since the early 90s. Currently, there are more than 40 offices in different areas of Moscow. The size of the NA commission depends on the type of service provided. When compiling the so-called

“guarantee card”, ensuring the agency’s full responsibility for the transaction throughout the entire rental period, the commission is equal to 100% of the monthly rental cost.

If the agency’s mediation is limited to simply selecting an option, the commission is 50%.

Option 3. Rent out the apartment to an agency at a fixed price.

The method is similar to option 2, only the Agency pays you a fixed fee (lower than the market one) regardless of whether the housing is rented or not. More often this method is used when renting out an apartment on a daily basis.

Pros : you receive a stable income. Whether there are tenants or not, all this may not matter. All issues in this case are resolved by the agent. Rent, utility bills, minor repairs - these are no longer your worries.

Cons : you receive an income below the market rate, and this difference can be up to 50% or the apartment can be rented daily.

Recommendations : the same as for Option 2, you just need to make sure whether the apartment will be rented out on a daily basis, and if so, whether you are ready for this. When renting daily, there are higher risks for the property. Checking tenants, video recording of property, securing a transaction, legal work - as a rule, with daily rentals they don’t bother with this. An acceptable and stable payment may be offset by high damage to your property or other problems.