Brokers beat rental sites
- The Hindu(Business Line), November 23, 2013
Brokers facilitate negotiations and paper work, which saves a lot of time and effort for the customer.
Looking for an apartment or seeking a tenant? Relying on 'To Let' boards, classified ads, security staff and neighbourhood brokers is passe. With online portals offering low or no commissions and also conveniences such as the ability to sort and search, both owners and renters are increasingly turning to online sources. But do these portals really offer more value than your broker?
Incomplete information
The primary frustration that home owners and tenants face when dealing with a broker is misrepresentation. Many small-time brokers give incorrect data or leave out relevant information, causing you to lose trust. However, these issues also plague online portals.
"Since listings are done online, there is a risk of some of the listings on the portal being fake or wrong," says Ganesh Vasudevan, CEO of IndiaProperty.
You may also find that properties that come up during a search have long ago been rented out, but have not been de-listed from the site. Others may have misleading information, such as overstatement of features or size.
Besides, some owners may not fill in all the details. Common errors include missing out on contact information, maintenance costs or amenities. Data such as exact location of the property, useable area (excluding common area) and how old it is could be important to a tenant, but may not included in the listing details.
Limited choice
Even as more home owners are listing their properties, the choice of homes online remains limited. In the Bangalore market, where around one lakh houses may be on rent every year, less than 5 per cent are listed directly by owners, says Sunder, CEO, HomeShikari.com.
Besides owners, a few large corporate brokers, who usually have the keys to the property on rent, also list online. So, it usually turns out that most other property you may see online is from small brokers. In many cases, the listings turn out to be just teasers, created to hook potential customers.
Brokers may have access to more number of vacant homes when you are keen on a specific locality, especially in older neighbourhoods.
Service gaps
The service of brokers may be needed even though you may shortlist properties using online portals. Agents may be able to take you to multiple properties in a short time, says Ravikumar, a broker in Bangalore. And for high-end properties, they may add value by giving advice on the right price.
"Brokers also facilitate the negotiations and paper work, which saves a lot of time and effort for the end customer," says Sumit Jain, Co-founder and CEO, CommonFloor. This is especially helpful when you are from another town.
You may also seek guidance on the infrastructure in the locality and comparable properties in the neighbourhood from the brokers. By being in the locality for a long time, brokers may be well suited to offer this knowledge.
Note however that brokers take commissions on both sides. Also, owners who do not use a broker may end up paying brokerage fee if the tenant comes with a broker.
Online players catching up
To their credit, many online players are also catching up. Most portals are trying to improve the accuracy of listings through various checks and a detailed verification process. Others offer incentives to owners who de-list inactive listings.
Portals may be a better bet in searching for properties in newer developments in a city/town and when you are open to multiple localities. Besides, they increasingly offer a lot of local information. Some are also offering services such as mobile apps that show apartments for rent nearby and video directions to the property.
Online portals also provide you a list of brokers in the locality and some may offer recommendations. "Most of the revenue for these websites is not from owners, but through the brokers," says Ankur Agarwal, Head of Property Acquisition at RealtyKart. So, do a thorough reference check on your agent, as a good one will certainly remove much of stress in the house-hunting process.
