For Renters
If you are thinking about moving to Indianapolis and not sure what part of town to “land on,” or you will only be in Indy for a few months to a couple of years or you are just not ready to purchase a home yet than renting a condominium or a home may be the perfect alternative.
But how much should you really expect to pay in realtor and other fees? What kind of paperwork will you need to close the deal? What if you don't pass the credit check? Do you need a guarantor? Learn the answers to these and other burning rental questions.|
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What Will You Pay in Realtor Fees & What Does The fee Cover? Contact Mitch NOW to find a perfect place!
Do You Get the Fee Back Later If Mitch Helps You Buy A Home?
How Much Will You Pay Out of Pocket?
Do you Meet The Financial Requirements? Will You:
- Pass the Credit Check?
- Do You Need a Guarantor?
- Should You Get A Roommate?
What Will You Pay in Realtor Fees and What Does The fee Cover?
Since most landlords will pay Realtors a fee for helping a renter with their home or condominium many times their payment will be greater than my commission. This means often times 100% of my fee is covered by the landlord. My commission ranges from $300.00 to $600.00 or whatever the Landlord pays if that amount is greater.
You may also be able to work directly with the condo or home’s owner, though you’ll likely spend a lot more time and effort on the legwork. Also, since it would be unusual for the landlord to pay less than $60.00 in Realtor fees, if my fee to you is $300 than that means you will have only paid $240.00 for all of my services. And, in this example, if you spread the $240 over 12 months and I negotiate on your behalf a $20-30 dollar per month reduction in rent; my fees would still basically be free to you!
My fees, payable with a check or money order made out to City Homes & Lifestyle, are due at the time you complete a credit application and/or sign the agreement to have me help you find a home or condo. At the time you sign a lease whatever the landlord would have paid in Realtor fees, up to the amount you have already paid, will be applied to your first month’s rent.
My fee includes;
· Helping you process a credit application. The charge for the application ranges from $25-$50 for each person whose name will be on a lease. Being able to share a current credit application with a landlord enhances your negotiating position and can often times eliminate the landlord's typical credit check
· Making it easier to indentify places that might interest you by setting up your own personal website where you can
o Initially review pictures and other information about the potential homes and condos
o Map the location of the property
o Keep track of those places that interest you and indicate those that do not
o Leave notes for me about what you like or do not like about places so that I can refine your search as much as possible.
· Showing you places that you have serious interest in. Note: You must first drive by the home or condo to make sure you like the neighborhood, location and the exterior appearance of the rental.
· Negotiating the best lease terms on your behalf.
Do You Get the Fee Back Later If You Have Me Help You Buy A Home?
When you make use of my services later, as a Buyer’s Agent, I will give you a gift card at Home Depot, Menards, Best Buy, or a similar store of your choosing for the amount that you actually paid (versus the portion that the landlord paid.)
How Much Will You Pay Out of Pocket?
Once you’ve decided on a place, the first month's rent (less any credit for Realtor fees paid by the landlord up to the amount you paid to Mitch) and a security deposit must usually be paid to the landlord immediately to hold the apartment. Many landlords require that rent and security be paid in the form of separate certified checks or money orders (no personal checks).
Security deposits can range anywhere from one month’s rent to three months’ rent (sometimes even more). You may also pay application fees and possibly for a landlord’s own credit check.
Do You Meet The Financial Requirements?
Many prospective renters are surprised by how stringent the financial requirements for many rental homes can be (especially without a rental history). Many landlords require that new tenants have yearly earnings of at least 35-50 times the monthly rent.
They’ll also look at your credit history, your employment status, and your outstanding debt (credit cards, auto loans, student loans, etc.).
Will You Pass the Credit Check? Do You Need a Guarantor?
Landlords will ask you for financial and personal information. Also, in addition to completing the standard credit application, some landlords will request copies of tax returns, pay stubs, letters of recommendation, etc.
If you don’t cut the mustard, a landlord may require a co-signer or guarantor. Some landlords require that a guarantor earn an annual salary of at least 80 – 100 times the monthly rent. The guarantor paperwork can be a big pain in the butt, so plan ahead.
Should You Get A Roommate?
Many college kids and recent grads search for homes or condos that they can share with a few roommates. Some look for roommates out of necessity, others just want to live in bigger places and get more bang for their bucks.
If you decide to get a roommate, make sure you choose carefully. Not all good friends make good roommates. Remember, you can usually have no more than two names on one lease. All roommates are held jointly responsible for the rent. If your good buddy decides he’s not paying this month, then you’ll be stuck with the entire amount. To avoid being left in the lurch, make sure you get everything in writing up front.
