The vast majority of real estate salespersons are honest and ethical, providing reliable information both in person and in their MLS listings for rental apartments. However, in this time of high inflation and market uncertainty, there are always a few agents who seek to pad their wallets by double dipping on commissions. Double dipping is an unethical practice where an agent receives a commission from both their client and the landlord upon a successful lease signing, without either party knowing they’re both paying the broker’s commission.
This type of agent might list an OP (Owner Pays) unit on Zillow or StreetEasy, marking it with a “Broker Fee,” assuming the landlord won’t be researching the listing—and they’re often right. This unfair and greedy practice sees one commission (the OP) go to the agency, while the salesperson pockets the other check directly, without reporting it.If you’re searching for an apartment and suspect your agent of double dipping, uncovering this can be a Herculean task.
The agent won’t admit to it and will likely block you from contacting the landlord directly, as they serve as the liaison between you and the landlord until the lease is signed.
So how can you find out if your salesperson is double dipping? Unfortunately, you must locate the landlord and contact them directly to see if the unit is an OP unit.
This requires navigating through various municipal websites, finding the block and lot numbers of the property, and using them to identify the owner. This process can lead you through a maze of information, with no guarantee of finding the right contact details.
If you manage to uncover that your broker is double dipping, both you and the landlord should send letters of protest to the agent’s agency and to your state’s Department of State’s Attorney General. Remember, most real estate agents are honest and ethical, but there are always a few bad apples.
If you’re willing to navigate the labyrinth of municipal websites, you may save yourself a hefty commission by discovering your agent’s unethical practices.
I hope this never happens to you, but if it does, good luck.