For every time I have to show up to show any apartments to any clients, I collect a $15.00 "Showing Fee" which is applied to their application fee if they decide to rent. The maximum amount of apartments I show for the $15.00 is THREE if they're within the same general vicinity.

The reason I'm starting to charge this fee is because this is the best way I can think of in order to cut down on the 'murfs' and other timewasters.

I think it's a fair idea, after all who else is supposed to cover the wear and tear for instance on my car, my clothes, my shoeleather and my larynx? I think it's time we woke up and enacted some DRASTIC INDUSTRY REFORM fellow brokers and agents!!!

You should pre-qualify them before you show. Charging wll send everyone running for the hills. It's tasteless.

Let us know how people react and how this affects your net income. I'm guessing there will be negative results with both.

$15 sounds cheap to me, you can't get a cab to take you around a couple of blocks for that with todays gas prices.
p.s. make the fee refundable if there is a lease.

Your earnings are supposed to cover your expenses. Are you going to charge clients for copies of listings? We do not charge by each task we perform. We collect a fee when our service is complete. Hopefully, that will cover your expenses.

I like it. Establish your worth more. If they are too cheap for your fee then focus on those who will pay. And let the time wasting rats run away especially to Jacksonville where apparently tasteless is chic!

They probably will find some other agent who will most likely will roam them around for free.

Most apartment managers in our area will pay a fee to the broker if you find them a renter...if those apartments are not available, i give them a list of others they can call on. I dont take them around. They seem to appreciate this just as much.

If I were the client, I'd be going next door to the next agent who will only charge for doing what I've requested -- closing the deal. This is not about being cheap, I'd want an agent who had the same goal as me. Charging per showing tells me that you'll show me as much crap as you can, because you'll profit if it takes longer to find me the right place. Nope, no way I'd use an agent like that. But I'm interested to see how it works out for you.

I like it! I don't have the nerve to do it, but I do like it! With so many complaints about high REALTOR fees, we could definitely lower fees if there were up front charges. The way "we" are structured now, those sellers/buyers who go to closing pay for all the "tire kickers" who go along for the ride.

When I was in CA, some agents required not only a pre-approval letter but a deposit toward the purchase of a home before any buyer got in their car. (Out there, earnest money deposit was payable to buyer broker company and deposited with escrow company when there was an accepted contract.)

Note - Above I said: When sellers complain about the realtor fees, I remind them who is ultimately paying those fees. Yeah, it comes out of seller proceeds, but who is paying for the house and those fees - it's the buyer! Their loan/down payment is paying all those costs.

Just some early morning rants from Kokomo.

Betty

Mary,
Maybe you need to find a better profession suitable for you...Our business is about "Time and people". You have to deal with what we do in this profession, not everyone is a Buyer,Seller of renter... But, that doesn`t mean that we have a crystal ball, to determine that prior to meeting them..

I agree that it seems as if you shouldn't be showing that much that you have to resort to charging. How does the client know that you're not showing properties just to get the fee?

If the client is wasting time and wanting to see a lot, then something isn't happening in the initial consultation to tell them your expectations and narrow the list. I show the clients ALL available properties and we sit together to narrow the list per their criteria. If they're not motivated to move soon, then you need to just refer them out.

Not sure what New York R.E. law is like, but hope you checked w/your broker prior to implementing this practice. If NY is like Ohio all monies earned in the practice of R.E. must be paid to the broker.

I wish I had Mary's ability to get so many people to talk to me.

Mary's posts are amazing at getting responses.

Up front pricing would only work (IMO) if every single office implemented this concept. Buyers and Sellers are becoming less dependant on REALTORS® everyday. While this makes sense to us who often waste gas on looky-lous, I think it would only give the tech savvy market another reason NOT to use us.

How do you prequaify a renter?

How do you prequaify a renter?

How do you prequaify a renter?

Ask 'em if they can spell wrent three times

Background check! If they are willing to complete this step, you can rest assured that they are serious!

FDLE.com normally works.

Hey Sheldonj,
Whats up with the Jacksonville comment? That was pretty rude and off base.

Well first off you cant charge them for the showing. you charge them 15% of the annual rent. so is a studio goes for $2,000.00 a month and that is $24,000.00 a year the renter pays $3,600 to the broker. thats if they rent the studio from the agent.

Now to qualify a person you want to see how seriously they need an apartment. If they say they need to move in 2 months there not seroius. They will look around for those 2 months. and they will try to find a management to show it to them so they dont have to pay. plus they got to pay a moving fee, and some management now state the tenent must give 6 months security to qualify for the aparment. Another fee is the application fee too. This of course is in NYC.

That's great pitsky. However I still want to know who's covering my expenses if they DON'T rent. Their drain on my personal resources is very disorientating.

You got to understand I have shown number of apartments to people and they dont rent it. So I dont get paid till I close a deal with them.

I fyou had a store with ducks for sale and people came by to look at all your ducks would you charge them for looking? most likly not, you make your money when the transaction of the deal happens. uunless you are the broker I wouldnot start charging that 15.00 fee. DOS might not be happy to hear this. Thats why you charge a fee wich should be negotiable.

I'm not even licensed yet and I see the flaws in charging people to take them to look at properties, rentals or otherwise.

I am also considering past posts and taking this one with a grain of salt.

I would've kept my full time job if I didn't have the resources to have nothing but expenses for the first several months of having a real estate license. In fact, that is all I have read in this forum... "no money to live on and pay out for starting up? save your sanity and have the money first." was basically what every agent I ever saw post said.

Yes, I look forward to making money, but I also want to help the people that walk through my door. Asking for a fee for showing someone a house would have me out of this biz real quick!

Having a store with ducks for sale is different than going out of my way for free to do stuff for ppl. With ducks for sale they come to me, with showing apartments I'm forced to go to them.

They have a choice to come in and buy the ducks. If they decide not to come into the store they did nothing.

You need another gig. I am pretty new at real estate sales. But, I do not remember hearing anyone tell me that all clients would bear fruit. It never happened in any of my previous sales gigs either now that I think about it. Sales has no guarantee. Hopefully, a good percentage of the folks that you invest time and money in will provide some kind of return. But, if you got into this, or any other sales job, thinking that each client you touch and work with better cover your expenses or make you money....you are sadly mistaken.
YOu ask "who is covering my expenses if they don't rent"....You are.
You pay your expenses. You provide the service. Not all clients will opt for it. Thats the sales business. Hopefully when some deals come through the money you earn helps cover some of the expenses from the deals that don't come through.
It sounds like somewhere along the way somebody may have given you bad info about how the sales biz works.

$15.00 a showing would hardly cover my expenses. I think it's very unfair that I have to be the one wind up burning up valuable resources on murfs out for a night on the town at my expense.

That's why I'm calling for drastic industry reform because that's the only way my idea is going to get done. If they want a guided tour of the neighborhood there are several professional tourguide agencies who would be happy to accomodate them.

Calling for major industry reform here on this message board...yet you couldn't be bothered to call in the hundreds of unlicensed agents in your area.

Interesting.

Also, to play along, if you had a store of selling ducks, not every person that walked into the store would buy a duck, yet you still had bills to pay, rent, food for the ducks, electricity.

So, would you charge every person that walked into your store $15? I highly doubt it.

I would suggest you find a gig where you get paid by the task or "piece meal" as opposed to sales. Sales compensation is typically paid on results achieved. It is not a step process where you get compensated for the different tasks that lead to your results. YOu do not seem to get this. You also do not seem to get the fact that monies run through your broker. You can't just decide to charge $15/showing because you feel like it. I think you should ask your broker for some expense money if you feel this is the way your business plan should work.
Gees, why do I get sucked into these conversations. this is some of the most ridiculous stuff I have read on this forum.

Welcome to the world of R.E. If you can't/won't go the extra mile for your customers, then you're getting what you deserve. Honestly, do you research R.E. before you got licensed?

If you're so worried about the gas costs (which I know that has to be what this is mostly about) then get one of these:



OR one of these:



It's definitly a lot more tasteful than asking your clients for gas money.

Josh

Again, there are plenty of tourguide operators in town that would be happy to show these people around town if they were PREPAID.

I don't mind people coming into my duckstore and not buying a duck. What would irk me is if I brought the duck to THEM out of my own expense and they didn't buy the duck.

Decency dictates they should reimburse my for the wear and tear on my car that I expended to go out of my way to show them this duck.

Sometimes this isn't a decent world though.

I think a lot of you like my idea of charging expenses to the clients instead of it being an out of pocket expense to me, the innocent joe who has to lay out expenses for every murf who comes my way. It would work if there were drastic industry reform which I think needs it.

Mary

And again, just because the people come to your store but don't buy a duck doesn't mean you don't have expenses.

So, using yourl ogic, whether they buy a duck or not, theyshould pay you to walk into your store....

It doesn't make sense.

When I started in this business at a C-21, it was office policy to ask for a $500 refundable retainer fee. That will separate the looky loos from the real ones.

I don't know, nor do care what kind of business you in before R.E. I do know that any good businessperson knows, that it takes money to make money, and in order to recieve, one must be willing to give. That means there must be sacrifices in order to reap rewards. If you're unwilling to do it that way, then don't.

If you want to charge each person a fee, then do it. Charge an application fee, charge a deposit, a sizable one, that's refundable to the client upon a closed transaction. It's not as though you're not recieving a commision when a deal closes.

$15.00 is nothing. It's not even a half a tank of gas, or half a carton of smokes. In most restraunts, that's not even a meal for one. If you feel you're a value to your clients ask for more, like $100.00 or something, that's refundable. That will prove your worth way more than asking for pocket change to veiw an apartment.

That's spot-on right, KT. And pikes peak your idea is preferred as well.

Like I say, there are plenty of tour guides in town willing to take people out for a whirl around the town. Us brokers have to do it for free.

Well not exactly for "free." Lots of times we get a "thank you so much for this."

Mary,
This is the wrong profession for you! The attitude you demonstrate quite frankly isn`t geared for our profession. You seem more inclined to work a 9-5 job, where you understand that each day you have a certain task that must be completed.

When a person such as yourself is so damn new to the business, you need to first find out "How the game is played", than find a niche for yourself.
In your case, you expect everything to be handed to you without much effort! There lies the problem...

I'm not demonstrating any "attitude," I don't expect everything to be handed to me and this isn't the wrong industry for me. All I said was I think this issue of "free eats" needs addressing and perhaps drastic RE industry reform is in order.

It is obvious you have not been in sales of any kind, let alone real estate. There are many things that you do in sales, show homes in Real Estate, take clients to meals or events, etc. that you do not get paid for as you go along.
This is common knowledge in any sales gig. You do not get this. Every task along the way does not have a carrot in it for Mary.
NObody has forced you to do this gig. You do not understand the sales cycle at all.

Mary-
You completely missed the point of my previous post.

If you're unwilling to pre-qual/pre-approve your customers, to have them sign an agency agreement, to go the extra mile and have extraordinary customer service, and finally, to close the deal, then you'll have a very difficult time in this industry.

While I agree there are issues with R.E., this is not one of them.

I think Mary does have somewhat of a point. But, it wouldn't work unless everyone did it. I think it would be a good change when it comes to showing rentals, and rentals only. I do not like it unless everyone was doing it though.

I actually like the Retainer fee better though. I might start taking a Retainer fee when I show rentals. I guess you would have to agree on showing a certain amount of rentals for a specific Retainer fee. Our Buyer Brokerage Agreement has this Retainer fee on there!

If everyone agreed to do that, wouldn't it be a RESPA violation? Or would it only be a violation if everyone agreed upon the same fee?

It won't be a RESPA if it entails drastic industry reform which is what I stated in the beginning.

If you're self-admitting "not even licensed yet" I see the flaws in you posting to this forum. Don't you see the subheader where it clearly states this is for "licensed" people only?

I have seen many agents whom are in the midst of getting there license post on this forum. I welcome it as they are interested in learning and will have things to share with us as well. Mary, if this person supported your cause what would your response have been?

Perhaps silence, perhaps redirecting him to where I am now redirecting him, to read the requirments to post to this particular thread/forum.

What would YOUR response have been?

Btw, with all due respect whether you "welcome it" or not is still contrary to the suggested usage of this particular forum. There's another forum right below for the specific purpose of "Aspiring Agents."

YOu probably better report him Mary.

Yes, I read the description of the board prior to posting here. No, I do not yet have my license, but I will have it by the end of the week.

This is far from the subject of the thread, but I was curious and looked at past posts, and found some from you, Maryknoll, before you had your license as well.

This is nothing personal, I just happen to disagree with your ideas.

Well, talk to me at the end of the week.

Mary you really have no clue why this would not be a RESPA violation do you? "drastic industry change?" Sorry but no.

There would not be a RESPA violation because RESPA does not apply.

Just use an EBA and do a better job screening your clients.

If you can get a $15 showing fee then go for it.

The other person said it would be a RESPA. I didn't initiate the idea, I was just agreeing with it.

It's been a long time since I took and PASSED my test and got my LICENSE. I don't remember all the terminology so excuse me but if something looks good I'm going to go along with it. Even if I don't know what it means.

My textbooks are in the other room becasue there's no room to keep them here in this room. That's why it's easier for me to agree with someone if they look good instead of getting up to retrieve me textbook.

Mary,
I think you need to locate a mentor to "Teach You" the business.

Mary,
Based on your posts you are still lacking a good grasp on this business. You may have picked up enough to pass your license test but not enough to make this work for you.

Your attitude is going to kill you before you even have a chance to succeed.

You need to find a company that offers extensive training and a mentor. All your posts seem to center around the same thing. You sitting around the office, playing on the computer and waiting for a client to walk through the door. What prospecting are you doing?

My suggestion for you is to find an experienced agent in need of an assistant and learn this business.

Mary,
I strongly suggest that re-read your real estate book, as well.

I studied "hard" for my school and state tests. I passed both with flying colors. Now I show apartments. I'm doing what everyone else in the office is doing. We're all around the same knowledge level.

I've closed a few deals lately, so I can't be getting it all wrong.

Mary

Maybe the lights come on when you walk away from this forum.

I guess they do, don't they.

Maybe that's your biggest problem. Find someone MORE knowledgeable and ask them to be your mentor.

If you are following the "other" blind mice in the office, you'll do no better than they are, as they have no guidance. Separate yourself and seek the advice (in person) of those who have been in the business for a long time.

Where is your broker? They should feel like crap for allowing all of you to walk the halls and seek advice from one another instead of mentoring all of you.

I appreciate the concern Gulf Winds, and I know you mean well. But I'm doing alright! Hey, I slammed another deal today with a couple more closings on the way....

Of course being I do rentals while unsuccessfully "dabbling" in sales so far, sometimes I wonder if I'm maximizing my time. I wonder if the paradigm is to always look for better surroundings or just stay put for awhile?

Just say your too busy and don't take the business. Refer them onto someone else if you have to. Focus your time on more profitable areas of the industry.

Cliff

I don't know exactly what you're telling me to do. I mean is it naturale to keep looking for some pie-in-the-sky better brokerage, or should I just stay put where I am and continue closing as many of these small deals as I can ....

Why rentals and not sales?

This is New York City we're talking about. More people rent there than just about anywhere else. And the real estate market works differently than in other parts of the country.

If there are a lot of rentals that means you should have a market full of investors. Learn how to find investors, learn the multi family market, and go make some real money..

Great advice! I think *everyone's* looking for what you suggest, but I like your idea to "go make some REAL money." How do I do that again?

what about telling buyers they can either give or get $100 CASH. They can choose the option of paying $100 to you if they dont want to sign eba, so that you can cover gas, wear/tear, work hours, and various expenses. OR, they can choose to get $100 CASH if they sign a 6 month eba. And if they arent pre-qualified, tell them you will help them get what they need.

Everything I know about New York real estate was learned from the sitcoms. There have been many episodes that gave insite on what it's like in New York--and these were some funny episodes.

In Texas, if you want an apartment, you go to an apartment complex. In New York, if you want an apartment, you get a cold water flat, you share with perfect strangers who preferably work different shifts, you bribe the super for an upgrade, you fake your financials to get into a good condo, and you are willing to live on the 5th floor of a building with no elevator to get on a particular subway route. If you aren't willing to live with those conditions, or can't find a rent controlled apartment, or not lucky enough to get a brownstone, you can move to the suburbs and pay a fortune.

How much of that is true I do not know, but New York is a place with more people than apartments, so it makes for some funny television shows. Let's face it...real estate is just one big sitcom, and we are the stars.


So what is it really like, sitcoms aside? Is the difficulty in finding housing mainly on Manhatten? Just curious.

Heh heh heh Darlene B. The BULK of that is TRUE!

I finally learned something from T.V.

Urbanprobe seems out for revamping and testing.

Mary,
Just a quick question.
Do they hold amateur comedy nights at the local comedy clubs in NYC?
I`m positive you can do a skit about your life and recieve alot of laughs!

"That's why it's easier for me to agree with someone if they look good instead of getting up to retrieve me textbook."

All I can say is, Wow!

Wow back. Luv that agreein'!

deleted.

I cannot believe the criticism that I am seeing on this board. Some of you are really mean. This board is supposed to be here to help and guide people, not to beat anyone to death with a bat.

You are right Len...I am deleting it.

Criticism? Or are you referring to Mary`s knack of doing "Stand Up Comedy" on agentsonline.com?

What "Stand Up Comedy" am I doing on agentsonline.com? I'm trying to close rental deals here.

I didn't see whatever abuse was written on the board, Agent 007. Nonetheless I thank you for your kind words.

I'm happy you got the poster to delete it. Thanks again.

What "Stand Up Comedy" am I doing on agentsonline.com? I'm trying to close rental deals here"
Right! by telling other Realtors you`recharing $15.00 per person , like a ticket usher in a Movie Theaterr. collector. Sorry, you`re attitude isn`t conducive for Real Estate.

Sorry, but I prefer English. Anyone care to translate?

Didn't think so.

I think the main problem here everyone has is they don't understand your market Mary. I know I don't. Around here we only do sales, rentals are looked at as a waste of time. I've only showed rentals one time and it was because it was for a friend of mine and she practically forced me to take her. New York is a completely different scene from most places and I can see people looking for rentals being big time wasters, especially in a place with so much traffic like New York.

As I was reading this thread I was actually against your ideas (mostly from your remarks), but after realizing your market you might have a good point. Pre-qualification is very important though. I don't show a house unless the person has been pre-qualified or can at least convince me that they have the money.

Thank you for your honesty, deu12000.

There is an easier way to "weed out" the lookers & I mentioned it on page two of this thread:

Require a background check prior to showing! If they are willing to complete this step, you can rest assured that they are serious!

It's something that they will have to do anyway, might as well get it done up front.

What exactly is a "background check?"

Background Check / Credit Check / Tenant Screening

I hope (for the owners sake) that your company does this PRIOR to renting!

We do a Credit Check for $50.00 but I don't know if that includes a background check or tenant screening. Those are new terms to me.

So I'm unsure of anything beyond a credit check.

Our company performs a credit check, criminal background check and previous landlord check with new renters. It's the least a property management company should do for it's owners.

I know we don't do criminal background checks. I think we do a previous landlord check and of course the credit check. But no criminal background ckeck.

Mary:

Do the landlord check & credit check prior to showing!

The whole point is... you get them to give you their information in order to "screen" them prior to showing them any properties. If they are willing to fill out the forms & have a inquiry made, then they ARE serious prospects. If not, then they most likely are "lookers". If you have some resistance to the request, just ask them why they object. Tell them that it's something that they have to go through anyway, so why not do it now, unless you're "just looking" and not ready to rent.

$50 bucks for a credit check? isn't that excessive. For that kind of fee, you should be able to get an all-in-one report on the rental applicant, including a back ground check and any eviction history.

If you pre-screen renters by way of their faxed or mailed application and their integrity checks, you would be managing your time better and would not find it necessary to charge an upfront showing fee. You also need to find out if that is an ethical practice by contacting your local apartment owners association, or some similar group.

I believe Mary wants to charge the upfront fee to off set some of her gasoline and miscellaneous expenses. I do not know how screening potential clients will offset those expenses. I guess it will weed out those whom you are spinning your wheels with that will not be able to get a rental anyway. In that sense, screening is good. But, chances are you screen somebody, everything checks out okay and then you still show them tons of places. In that sense, screening the applicant did not save on your expenses.
I still stick to my original thoughts on this. As a client, I would go next door to the Realtor who would gladly show me property without charging me a "showing fee". I have always thought that part of my gig was expenses. when I successfully do my job and fulfill my clients needs, I get rewarded...not until then.

I think the idea of doing all the screening ahead of time is the best idea. The way we do it now is we get that screen AFTER they're interested in a place to rent. I think that's the wrong way to do it.

How will the screening stop a client from looking at 50 properties? You will weed out bad clients, but will you not still be running people around on your dime? I had thought that was the issue...

Anyone have a good low cost criminal background check source?

Try FDLE.com

I think $50 bucks is pretty reasonable for a credit check. I'm aware of other agencies that charge $75 and even $100. I don't know what standard procedure applies in California. Wish I were there though

Just to be sure, I checked again with our California Assn of Realtors rental application form and it stated that the screening fee is not to exceed $30.00. This is the left coast.....who knew?

NY can be insane. When I was doing my first transaction (a rental) the listing agent demanded the customer undergo THEIR credit check! My customer agreed - although the idea really bothered the heck out of ME. Then when I found out what they were charging I understood why they insisted on it..$250!!!! Nope..I didn't add a zero! Usually, in Westchester it's about $15-20. I guess they found another to augment their profit. They only offered the subagent $100.00 to rent the place - which would give me $50.00! I didn't know any better at the time. My office was furious - on both counts.