Question Re: Commission

[ARbound]

I have a feeling I know the answer to this question already, but here it goes.

So my friend and I are trying to get a place together. We're both staying at his mom's now, and we want to move sooner rather than later. Any ways, the issue we've come across is the astronomical demands for 2 months worth of rent as a commission. Considering our budget is >4K for a place, you can see we're not made of money.

This makes a 3.5K place end up costing me (someone looking desperately for a job) having to pay: $1,750.00 for first month, $1,750.00 for last, $3,500 for my share of commission, meaning $7,000.00 ARS to just move in, and I don't even own a bed yet!

Are there any companies that don't charge a huge amount for commission, or any companies that are commission free? What bugs me even more is the fact the agent doesn't work for us, and we're paying for them to show us the place for a company, and they use a free classifieds site like Mercadolibre to do their work.

Long story short I need to become a real estate agent...

 

[splaying]

why not look into the newspaper listings or craigslist .. there are many other opportunities out there to find an apartment without the usury tax of the commission. look around but it will take time .. every day someone is renting something new so take your time and enjoy the experience .. similar happenings occur in other countries too. the best comes in time. yet sometimes one can be lucky. please let me know how you do if you are so inclined to do so too.

 

[Davidglen77]

Here's some advice: You can try solodueños.com. This is a site that actual owners use to rent directly (even though some real estate agents sneak in there as well) usually without commission. I know a lot of people complain about real estate commissions and agents, however most of the real estate agents work on commission only (no salary) so that is their only income, kind of like people who complain about paying tips to waiters, who have an extremely low wage, and count on tips to make up more than half of their actual income. The hard and cold truth is if you don't agree with or can't afford the commission, start ringing doorbells, answering classifieds from direct owners, doing the legwork to find a commission free apartment, just like people who don't want to tip waiters will either eat at self service / fast food restaurants or at home. Also here when you rent there are costs involved for the real estate agency, such as ordering the reports which prove the guarantor's property is free of debt and is actually not embargoed, and other administrative costs and taxes, such as IVA, ingresos brutos, etc. Close to a half of that commission is just going to pay costs they pay out. On top of that, the other half goes mainly to the real estate office and if the agent ends up with about 20% of that commission it's a lot. One of the main reasons things cost so much here is the high taxes and overhead that have to be paid on everything. Also keep in mind that if you are renting in pesos, you are saving A LOT of money. Right now temporary rentals in U$D are around $800 for a 1 bedroom and some do accept pesos without a guarantor but they are asking $5000 - $6000 pesos per month for a short term, less than 6 month contract. So if you put those costs into perspective you are coming out way ahead.

 

[GS_Dirtboy]

Don't resent the agent needing to make money to run his/her business. Use the "loose standards" here to your advantage. Offer the agent more commission (under the table) if he negotiates a better rental deal with the home owner for you so that you both win.

 

[samiamm]

I have a feeling I know the answer to this question already, but here it goes.

So my friend and I are trying to get a place together. We're both staying at his mom's now, and we want to move sooner rather than later. Any ways, the issue we've come across is the astronomical demands for 2 months worth of rent as a commission. Considering our budget is >4K for a place, you can see we're not made of money.

This makes a 3.5K place end up costing me (someone looking desperately for a job) having to pay: $1,750.00 for first month, $1,750.00 for last, $3,500 for my share of commission, meaning $7,000.00 ARS to just move in, and I don't even own a bed yet!

Are there any companies that don't charge a huge amount for commission, or any companies that are commission free? What bugs me even more is the fact the agent doesn't work for us, and we're paying for them to show us the place for a company, and they use a free classifieds site like Mercadolibre to do their work.

Long story short I need to become a real estate agent...

I am sorry but you wish to find someone who does not charge commission for working for you . Argentina has very strict labour laws to stop the exploitation of workers that is prevalent in most of the world .

 

[ARbound]

Well, I guess I should update about this. Two days after the post my friend and I found a place we liked so we put our deposit down and 15 days later we're still waiting for a yes or no. I'll warn you guys about the company if it finally goes through.

As for the commission, after talking to friends/family of my friend, we realized it just wasn't possible, so it's been a tough pill to swallow, and even more so since the guy is terrible. 2 months, and all for a terrible guy who constantly lies about calling us back. It took a week to find out if the owners had even seen the application, another week to find out they're ok with it, and now, today, we'll find out if it's a final yes or no, but not after having to call him to remind him to call us, because otherwise he won't.

I am sorry but you wish to find someone who does not charge commission for working for you . Argentina has very strict labour laws to stop the exploitation of workers that is prevalent in most of the world .

How quaint, you didn't read what I said did you? The guy does not work for us. He works for the owners of the building to list/advertise the place and show it, and in Argentina, the renters are the ones that have to pay him. What's worse is he's a terrible agent who doesn't hand in the documents, lies about calling us back, and gets the commission even though we're the ones doing all the work. Remember, we came to him, he only looks after one place, and unlike in the US, he doesn't go out looking for places for us.

Like I said, I'll give you guys a warning about this company if it finally goes through, it's funny, after two weeks of "I haven't heard from the owners" we found out in 15 mins after telling him We're fine with going to another company and giving someone else a commission. Funny how money motivates people...

 

[shoush]

I know the commission can be frustrating but thats how the agency makes money. I definitely recommend you use craigslist and although it may take a bit longer, you can go check out the apartments and talk to the owners directly. Try airnbn too!

 

[CMG]

Literally the only place I found that didn't charge commission was soloduenos as they are properties rented by the owner.

 

[Davidglen77]

How quaint, you didn't read what I said did you? The guy does not work for us. He works for the owners of the building to list/advertise the place and show it, and in Argentina, the renters are the ones that have to pay him. What's worse is he's a terrible agent who doesn't hand in the documents, lies about calling us back, and gets the commission even though we're the ones doing all the work. Remember, we came to him, he only looks after one place, and unlike in the US, he doesn't go out looking for places for us.

"The guy does not work for us" Actually he does, technically and he only technically works for the owners of the building who don't want to deal with the complicated task of finding renters. I own a rental property and after doing it once at the beginning there is no way I would ever deal with showing the property, verifying all of their documentation, verifying the guarantor and the guarantor´s property, making sure they have the proper insurance, frequent complaints (some founded and some unfounded) I would only rent my property through a real estate agent, and I even have them manage the rental, collect the rent, make sure the tenant pays the expensas and other bills as well as any issues with the property. And for this the tenant paid them commission when they rented and I pay them 5% of the monthly rental amount to deal with all the crap. For me it's worth every penny.

 

[Lost in Buenos Aires]

In a weird sort of way, this thread has been entertaining to read.