Apartment buildings that cooperate with rental services (not all of them do) typically pay a month’s rent as a commission for bringing in a renter, although some only pay a half month’s rent.
A tipster alerted me that SoNo East, 840 W Blackhawk, is currently offering rental services a month-and-a-half’s rent in commission on select two-bedroom apartments. That’s likely to spur many of Chicago’s hungry rental service agents into “hard sell” mode.
Has all the new competition in the rental market made SoNo East’s 2-bedrooms a hard sell? Can there be any other explanation for offering extra compensation to agents?
If you’re considering SoNo East, don’t forget that commissions are fully negotiable and that you can ask for the extra commission to be rebated to you rather than retained by your agent. Better yet, visit the property without an agent and avoid the hype you’re likely to hear.
Is it too much competition or are they just overpriced?
I don’t have an answer to your question, John, and I suspect different people may give different answers.
What I find disturbing about this compensation offer is that it appeals to the worst instincts of Chicago’s worst brokers – our overabundant, hyper-piratical apartment locators.