We are closing on an investment condo in downtown Manhattan in 10 days or so. To rent it out, we plan to sign an exclusive marketing contract...

Asked by Dtinvestor, New York, NY Fri Jul 13, 2012

The duration of the contract is six months. We plan to rent it out in a month or two. Hence, why do we need a six month exclusive contract? Is this typical?

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19
Anna M Brocco, Agent, Williston Park, NY
Fri Jul 13, 2012
Duration of the listing agreement is negotiable, therefore discuss with your agent.....
2 votes
Yury Holohan, Agent, NY, NY
Mon Jul 16, 2012
It is typical in New York City to sign an exclsuive listing for six months . there is time adn marketing dollars allocated it to each exclsuive ,
You must hire a great company but more importantly a broker that will create the best strategy for your unit based on the present market conditions .
I would love to meet with you at your most convenient and earliest opportunity .
All my best
Yury Holohan , SVP
TOWN Real Estate
New York City
917.385.5576 .
yury.holohan@townrealestate.com
1 vote
Mitchell Hall, Agent, New York, NY
Fri Jul 13, 2012
It's prime rental season in Manhattan now. If it's priced right and marketed properly it will rent very quickly. If it's not it will take longer. What are the rent prices of other comparable apartments in the building? Discuss with agent how long they think it will take to rent. The agent only gets paid for results not for their time.

Mitchell Hall, Associate Broker
The Corcoran Grop
MHALL@corcoran.com
1 vote
Alen Moshkov…, Agent, Brooklyn, NY
Fri Jul 13, 2012
DTinvestor,

Typical rental exclusives are taken for a duration of 3 months, but all of these terms can be negotiated.

Simply put, if a rental apartment doesn't rent in 2 months in a good market, either the property is grossly overpriced or the location and the physical space are undesirable to most.

Have you already decide on who to list with?

Best regards,
~Alen
1 vote
Tarah Young, Agent, New York, NY
Fri Jul 13, 2012
You can surely negotiate the terms of the exclusive agreement including the length of the agreement if it is something you are not comfortable with. From your agent's stand point, They probably want to have enough time to market your property properly. Remember, the market does not always work the way you want it to.
1 vote
Brian Moore, Agent, New York, NY
Wed May 29, 2013
Congrats!! Honestly, I would rent it out on my own if you have the time to review interested parties. Place an ad and your list of requirements (be sure to abide by all Equal and Fair Housing Laws). Rental season is upon us...good luck & feel free to contact me if I can be of any assistance.

Listing Agreements are ALWAYS NEGOTIABLE.
0 votes
Fern Hamberg…, Agent, New York, NY
Tue May 21, 2013
Congratulations on your condo purchase!
Pricing your apartment accurately should be your real goal. Whether you do a three months or six months is up to you and is negotiable. It takes 4-6 weeks sometimes to get a management approval from the condo.
Best of luck
Fern Hamberger
Corcoran
fhamberger@corcoran.com
0 votes
Katherine Sw…, , New York, NY
Tue May 21, 2013
How far downtown? There are a lot of units in properties below Canal St. offering Brokers' incentives to bring prospective tenants to rent in their buildings. You do not need an exclusive contact at all. Market it yourself. I suggest, if the condo will approve - furnish the apartment and rent 3mos to a year.
0 votes
Daniel Bloom, Agent, Glen Cove, NY
Tue Jul 17, 2012
My brokerage specialises in managing individual apartments rather than blocks. If you are looking for a real estate firm to manage your apartment once you have rented it out please feel free to call.
0 votes
Jenet Levy, Agent, New York, NY
Mon Jul 16, 2012
In this rental market, your condo will most likely go very quickly in most neighborhoods, not all. I would not let a 6-month listing agreement scare you. It is standard in NYC for the major companies, as it is the same listing agreement that is used in down markets and up markets. There is a less than 1% vacancy rate and I would not expect it to be on the market long at all.
0 votes
Cheryl Jacks…, Renter, Brooklyn, NY
Sun Jul 15, 2012
i am looking in Far Rockaway, Lawrence Ny area preferably, although Philadelphia, Pa is an option as well because my Boyfriend lives there. I am a renter at this time, but do know what it is to live in a home,so I hope that I have been helpful.
0 votes
Alen Moshkov…, Agent, Brooklyn, NY
Sat Jul 14, 2012
Let's be honest here.

It doesn't matter if the exclusive agreement is for 3 months or 6. If your agent isn't delivering the results, they aren't bringing people, no showings, no open house, no communication, etc...you have every right to terminate this agreement. You are not bound for six months as an agent below suggested.

Alternatively, if the market rate for your type of apartment is $5,000 (as an example), yet the owner is under the impression that it's the best in town and demands $7,000, in this situation I would absolutely take it for a minimum of 6 months and not 3.

It's art more than science.

~Alen
0 votes
First Last, , 90002
Sat Jul 14, 2012
Yes, I agree that 6 months is way too long for a rental agreement. I know of only one brokerage firm that routinely asks for 6 months.

The shorter the contract, the better for you, because then you can change agents if you are not satisfied, and it puts pressure on the agent to get the job done. The longer the contract, the better for the brokerage, because then they can use your listing to attract new business, and they've got you locked in so they can take their good old time getting a deal for you.

It is a very, very simple thing to renew an agreement like this for another month.

In your shoes I would insist upon a 60 day contract. If they balk move on, plenty of agents (me included) will sign for 60 days or even 30 days. But surely they will accommodate your wishes.

Karla Harby
Licensed Real Estate Salesperson
Rutenberg Realty
New York, NY
kharby@crrnyc.com
212-688-1000x146
0 votes
Charlie Summ…, Agent, New York, NY
Fri Jul 13, 2012
I normally use a 90-day term for rentals and 6-months for sales but as other agents have said ithe length of time on market is much a function of proper pricing and marketing so normally 90 days does it.
Charlie Sunmers, Bellmarc 917-376-1648
0 votes
Laura Thierer, , New York, NY
Fri Jul 13, 2012
I believe a 6 month rental agreement is too long. Like my colleagues already said, as long as it is priced right, it should rent fast.

My office specializes in rentals. Feel free to contact me and we can talk about marketing your property.

Congratulations on your investment!

Regards,


Laura Thierer
Licensed Real Estate Salesperson
Ardor New York Realty
914-426-0075
Lthierer@ardorny.com
0 votes
Thomas Brady, Agent, Plainview, NY
Fri Jul 13, 2012
I would interview some other agents until you are comfortable with both the terms and the agent. You can also confer with the agent you are considering using to see if he or she is flexible with the terms.
Tom Brady SFR, e-Pro, SRES, GREEN
Licensed Real Estate Salesperson
Notary Public, Ret. NYPD Lt.
631-682-8660
Tom@BradyFamilyRealty.com
http://www.BradyFamilyRealty.com
"We treat you like family!"
Charles Rutenberg Realty, Inc.
255 Executive Plaza - Suite 104
Plainview, New York 11803
0 votes
Grace Florim…, Agent, Queens, NY
Fri Jul 13, 2012
Every contract is different. The agent gets paid for the results and not the time they invested so it is advisable that the property is priced right from the very beginning. If the property is priced right, it will rent quickly.
Ask what is the market plan for the next month and ask your agent why is he requesting a 6 month exclusive. He might foresee some issues with the property.
0 votes
Jeannette Ba…, Agent, Brooklyn, NY
Fri Jul 13, 2012
Wow six months to rent the condo, If they couldn't rent the condo in a month and half then somethings wrong. Re-negotiate your terms, honestly six months is too long, I don't think that's fair. Contracts were made both parties not just one. Wish you the Best and "Congratulations on your new investment, hope it brings you lots of money". Jeannette Batsikas
0 votes
Fern Hamberg…, Agent, New York, NY
Fri Jul 13, 2012
Hello Dtinvestor,

You and the broker should be comfortable at 2-3 months...even less...
It is all about your asking price.

Fern Hamberger
Vice president Asso broker
Citi-habitats
fhamberger@citi-habitats.com
0 votes
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