Paying brokerage fees during tenancy? (Somerville edition)
December 10, 2013 4:29 AM Subscribe
Renting in Somerville, MA and property management is telling me I have to pay an extra $600 brokerage fees on top of rental increase to add a tenant to my lease off-cycle. Is this normal?
I have rented in a place in Somerville, MA for over a year. A month into my second year lease term my boyfriend and I decided we would like to move in together at this apartment. I notified the property management of and asked what the process would be adding him to lease. They told me he would have to fill out the same applications, credit check etc., notified me of a small rental increase for a second person, but then told me I am required to pay the brokerage fee for changing the lease terms off-cycle - which they also tell me is 1/2 months rent (close to $600!). This isn't something we'd budgeted on, nor is it stated anywhere in my lease that I'm responsible for any brokerage fees. They are supposed to be sending me their agency disclosure statement, but this will be the first time I've seen this statement (if it is where it's stated I am responsible for the fees off-cycle). Is this normal practice or am I being taken advantage of? If my suspicions are correct, what recourse do I have? Thanks!
I have rented in a place in Somerville, MA for over a year. A month into my second year lease term my boyfriend and I decided we would like to move in together at this apartment. I notified the property management of and asked what the process would be adding him to lease. They told me he would have to fill out the same applications, credit check etc., notified me of a small rental increase for a second person, but then told me I am required to pay the brokerage fee for changing the lease terms off-cycle - which they also tell me is 1/2 months rent (close to $600!). This isn't something we'd budgeted on, nor is it stated anywhere in my lease that I'm responsible for any brokerage fees. They are supposed to be sending me their agency disclosure statement, but this will be the first time I've seen this statement (if it is where it's stated I am responsible for the fees off-cycle). Is this normal practice or am I being taken advantage of? If my suspicions are correct, what recourse do I have? Thanks!
Why do you want to add him to the lease? Couldn't he just move in with you and pay a share of your current rent? Presumably you can afford the whole rent yourself anyway, so it doesn't seem likely that you need whatever financial protection would come from having his name on the lease.
It seems to me that what you are asking from your landlord is effectively to tear up your old lease and give you a new lease on the apartment that now includes both you and your boyfriend. I assume this is also the basis for increasing the rent (I'm not aware of apartment leases that have a different rent rate depending on how many people occupy the apartment, but maybe this is a thing?). If this is, indeed, the view that the landlord is taking then yes, it is not uncommon for a broker's fee to be part of the deal when you make a new lease.
Is there a provision in your lease that says you are the only person who is allowed to live there, or requiring that you modify the existing lease or execute a new lease in the event that someone additional moves in with you? If not, I would consider leaving your lease with the landlord as-is. This is what I did when Mrs. slkinsey moved in with me prior to our marriage. Then, once we got married, I simply sent a letter to the landlord informing him of the fact that I was married and that Mrs. slkinsey now had whatever rights and responsibilities were hers under the law with respect to the lease. (I live in a rent-regulated NYC apartment, however, so the laws are quite different I'm sure.)
posted by slkinsey at 5:40 AM on December 10, 2013
It seems to me that what you are asking from your landlord is effectively to tear up your old lease and give you a new lease on the apartment that now includes both you and your boyfriend. I assume this is also the basis for increasing the rent (I'm not aware of apartment leases that have a different rent rate depending on how many people occupy the apartment, but maybe this is a thing?). If this is, indeed, the view that the landlord is taking then yes, it is not uncommon for a broker's fee to be part of the deal when you make a new lease.
Is there a provision in your lease that says you are the only person who is allowed to live there, or requiring that you modify the existing lease or execute a new lease in the event that someone additional moves in with you? If not, I would consider leaving your lease with the landlord as-is. This is what I did when Mrs. slkinsey moved in with me prior to our marriage. Then, once we got married, I simply sent a letter to the landlord informing him of the fact that I was married and that Mrs. slkinsey now had whatever rights and responsibilities were hers under the law with respect to the lease. (I live in a rent-regulated NYC apartment, however, so the laws are quite different I'm sure.)
posted by slkinsey at 5:40 AM on December 10, 2013
From the first pdf zizzle linked: "Only a licensed real estate broker or salesperson can charge you a fee for the purpose of finding an apartment."
I would definitely contact some of the resources listed later in that pdf.
posted by nat at 6:20 AM on December 10, 2013
I would definitely contact some of the resources listed later in that pdf.
posted by nat at 6:20 AM on December 10, 2013
Response by poster: For clarification, yes there is a provision in the lease that specifies only I am to live there and no one else which is why i am forced to add him. I was not responsible for the brokerage fees on executing the initial lease, it was advertised as no fee on craigslist.
posted by danapiper at 6:23 AM on December 10, 2013
posted by danapiper at 6:23 AM on December 10, 2013
i've never heard of anything like this on the west coast, and i think you are being gouged. they sense that they have something you want - permission to add the boyfriend, and by god you're gonna pay for it. why $600? seems kinda arbitrary. seems like they tried to calculate a "sweet spot" where you would pay up as the least troublesome of your various alternatives. after all, even for a layperson, a new lease would cost under five bucks at a stationery store. so, i would move him in unannounced without permission and answer any questions with "he's just a guest." i detest people like this - if he were on metafilter he would charge you to read his comments.
posted by bruce at 8:20 AM on December 10, 2013
posted by bruce at 8:20 AM on December 10, 2013
Dunno about legal, but definitely not normal, even for Somerville.
posted by weaponsgradecarp at 9:19 AM on December 10, 2013 [2 favorites]
posted by weaponsgradecarp at 9:19 AM on December 10, 2013 [2 favorites]
Response by poster: He had been living there on and off for a while watching my cats while I was away for work (2-3 weeks per month) and they called me on it which is why all the hassle. Now that I've questioned it they're saying if I extend the lease another year they'll waive the fee. As i have no intention of leaving the area anytime soon I'm tempted to agree to it but will still check out the resources zizzle posted. Thank you for that!
$575 is half a months rent. That's the fee they're asking for.
posted by danapiper at 10:51 AM on December 10, 2013
$575 is half a months rent. That's the fee they're asking for.
posted by danapiper at 10:51 AM on December 10, 2013
Just as an added FYI, if you're boyfriend were instead your husband, then it's illegal as spouses moving in on an existing lease without incurring rent increases is specifically protected by MA law, as is having a child and having that child live with you when you are the parent.
posted by zizzle at 11:33 AM on December 10, 2013
posted by zizzle at 11:33 AM on December 10, 2013
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I'd also look through here as well.
And failing that, I'd put a call into the Attorney General's office to ask your question. They can tell you for sure if it's allowable, though they might have to take the information and get back to you.
You could also call any of the legal clinics associated with the law schools in the Boston area (BC, BU, Suffolk, NEU, etc.) and they might be able to let you know if this is allowable for a minimal cost. A lot of the law school legal clinics deal with housing issues specifically.
posted by zizzle at 4:54 AM on December 10, 2013 [1 favorite]