Property Grunt

Thursday, October 26, 2006

Rental scam press conference

I got this announcement from Craig Newmark.

ADVISORY: Renters beware - One-third of ³no fee² online ads
have hidden
brokers¹ fees

THE COUNCIL OF THE CITY OF NEW YORK - OFFICE OF COMMUNICATIONS
**FOR PLANNING PURPOSES ONLY**
October 25, 2006

Contact: John Collins
212.788.7121; 646.263.1877

Renters beware: One-third of ?no fee? online ads have hidden brokers?
fees

CITY HALL ? One-third of ?no fee? online ads have hidden brokers? fees,
says
a new report to be released THURSDAY, OCTOBER 26th by the City
Council?s
Oversight and Investigations Committee, chaired by Council Member Eric
Gioia. The report outlines the problem of fraudulent advertising on
Internet sites, such as craigslist.org and backpage.com.

WHAT: New report on the problem of hidden brokers? fees in online
advertising

WHERE: Red Room, City Hall

WHEN: Thursday, October 26, 2006 at 11 AM

WHO: Council Member Eric Gioia, Council Member Leroy Comrie, Council
Member
Gale Brewer, Council Member Erik Martin-Dilan and Carl Ferrer, founder
of backpage.com
**NOTE: Craig Newmark, founder of craigslist.org, will be available via
conference call after the press conference.


I could be wrong but it looks they are going to be focusing on "double dipping" in the real estate industry. Basically its the unoffical markup of rental fees. For instance, if you go for a no fee apartment and you are able to negotiate the fee down to 1 months rent, you might be getting screwed over because the broker is being a full 15% by the landlord. What is legal if the client pays a portion of the fee and the landlord pays the difference resulting in 15%. Oh what will those wacky rental agents think of next?