Topic: Apartment Locators

Hello All!

I have been on the vendor side of the multi-family industry for about 10 years, after many years working on site. I am curious if Apartment Locators are still used or do most residents turn to online searches such as apartments.com?

If they are still used, does the commission still equal about 50% of one month's rent?

Thanks!

We used to have one company that offered this service. I don't think they made a lot of money. With high occupancy that we have been enjoying for the last couple of years, I don't think it would be worth the effort.

Nearly everyone has a phone with internet that they can use to search for apartments and apps make it easy! I would consider a progressive rate, such as:

Rent
$400 - $ 800 = 50% of the first month's rent
$801 - $1200 = 25% of the first month's rent

Or, a flat finders fee. I used to get $250 if I found a tenant for a homeowner when I worked in a real estate office.

It definitely depends on the market! The Houston market has turned pretty sour recently because of the low oil prices, and I have heard that some communities are actually paying 200% PLUS 2 more months free to the prospect as a concession! Craziness...

I would think that in your large metro markets (thinking New York, LA, DFW, etc.), there would still be a market for locator service or even utilizing a realtor. Even with the availability of excellent online tools, your options would be almost overwhelming. I know here in Ohio, there isn't a whole lot of opportunity for a locator service. I had listed with a few but got no traffic at all. My corporate leases (including short-term and/or furnished) came through traditional searches (not even a single one from even CORT's apartment search), my military through listings with base housing offices or mybaseguide.com.