While a comparison of Craigslist listings over (rather than point in) time would be more compelling, a plugged-in reader with a rental unit in soma echos The Bay Citizen’s report that brokers seem to be gaining share in San Francisco’s rental market.
“The trend has gone to broker representation,” said a local real estate firm associate who analyzes the San Francisco rental market on a weekly basis but was not authorized to speak publicly. Interviews with several other brokers and real estate experts confirmed the shift. In a slow home sales market, managing apartment rentals has provided agents with an expanded revenue stream — and they forge relationships with prospective home buyers.
But with broker fees typically 6 percent of a year’s rent, why would property owners start paying middlemen? After all, San Francisco is one of the most expensive rental markets in the nation, and demand for housing is considered steady.
Experts say the shift has to do with new buildings, the recession and the city’s pro-tenant environment.
We’ll say it’s a function of more single-unit landlords without economies of scale or experience in a down market. Or as another reader notes, perhaps brokers are simply more likely to
spam post multiple ads on Craigslist.
∙ Brokers’ Entrance Into Market Bodes Ill for Renters [SocketSite]