NWR- Help with apartment lease and timing of payment, anyone in real estate?

kat124 Posted: Dec 05, 2009 05:02 PM

NWR- Help with apartment lease and timing of payment, anyone in real estate?

Hi, just found a great apartment. We are technically approved and signed a lease. The landlord has not signed yet becuase he lives outside of NY. The agent told us that we would have to give him one month rent, one month security and a month and a half comission, but that the landlord would in turn give us a month and a half free rent, technically no fee. So our move in date would not be till mid Jan. Our lease is from March 2010 for one year. Here is my question, am I wrong or should payment only be made once I have a lease on hand signed by both sides? The agent is asking me for payment within the next month or so and that my lease will be mailed to me at my new address. Thanks in advance!

AngnShaun Posted: Dec 05, 2009 05:18 PM

Re: NWR- Help with apartment lease and timing of payment, anyone in real estate?

I think that is a company by company policy... The Management companies that i've worked for usually have a meeting with both parties so they can sign at the same time, and collect the check or money order at the time that both sign the lease.

Being that the person is out of NY I would feel more comfortable if the company signed the lease and then you sent them the money.... there is no way they can loose out on the deal by doing that... but there is a HUGE risk on your part if you send them the money without their signature on the lease

cateydee Posted: Dec 05, 2009 06:42 PM

Re: NWR- Help with apartment lease and timing of payment, anyone in real estate?

keep in mind that if they are giving you a month an a half for free, get it in writing. esp. if your lease says it begins in march.

alli3131 Posted: Dec 05, 2009 07:21 PM

Re: NWR- Help with apartment lease and timing of payment, anyone in real estate?

My advice. Have the LL sign first and then when you sign you pay the $$$$. Also do you realize that yes you are getting Jan and Feb (or portion of) free your lease starts in March 2010 so you committed yourself for 14mons. If you are getting free rent then I feel your lease should begin Jan 2010.

I had an apt where I got a month free and my lease date was the day I moved in not a month from when I moved in.

MrsSoto Posted: Dec 05, 2009 07:23 PM

Re: NWR- Help with apartment lease and timing of payment, anyone in real estate?

I work in real estate. In regards to the 'no fee' arrangement that you explained, the company I work for doesnt do things like that...they charge normal commission to the tenant which for our local market in queens/long island is 1 month rent BUT even so, absolutely do NOT pay anything until you have a lease in hand. Since the landlord is out of state and you cant simultaneously sign with him and hand him over a check, I would send a post dated check say 2 or 3 weeks from when you send it out and ask him to sign the lease and send it back to you by the date on the check. If the day before the check date arrives and no signed lease from him, void the check.

Although Im not saying this arrangement is illegal because like I said my company doesnt have deals like that but I find it suspicious about the 1 1/2 month commission to the landlord and especially that they are asking you to pay something and they will send it in the mail...that part is definately reason to be concerened. I would be very wary of this whole thing just for your protection.

FutureMrsLMS Posted: Dec 05, 2009 08:36 PM

Re: NWR- Help with apartment lease and timing of payment, anyone in real estate?

I'm a landlord and agree w/ the advice posted above. I gave my tenants the lease at the same time I collected 1 months security from them and the first month's rent. Since I rented them directly without a broker. there was no fee. The only thing is that since I own a Condo I have to deal with this Management company that charges all new tenants a $170 credit check fee and a $1,000 move in escrow and carpet escrow. The tenants are paying the 1K (which they get back once they move in) and I offered to pay the 170 fee because I think its stupid for a Mangement company to charge that much for something they can do for cheaper.

My tenants signed the lease today and they move in January 15th.

kat124 Posted: Dec 06, 2009 01:56 PM

Re: NWR- Help with apartment lease and timing of payment, anyone in real estate?

Thanks to everyone for the advice. I researched the company and no BBB complaints, plus I've even found articles about them in the NY from 1982! mentioning their work in the real estate (conversion of co-ops to rentals in Forrest Hills during the 80's).. I called the realtor and he told me that I will get a receipt once I paid, demonstrating in writing that I what I paid and what was promised to me.

I will get my lease the day I pick up the keys, which can be before my official move in date.

So my plan is to pay the entire amount with a post dated (the day am supposed to move in) bank certified check. I was told I can begin moving in a few days before my official move in date. So I figured I pick up the keys and the lease the weekend before and if something is fishy I just cancel the check right then and there.

I feel better now, but its still such a scary world out there with so many people trying to scheme money that I figured whatever I can do to protect my self.

Thanks again everyone!!!