"We have found a one-bedroom in Bensonhurst for $1100. We passed the credit check. The agent is asking for security/rent/fee in cash or money order. Is it normal for an agent not to take a check or another form of payment that involves a receipt? We don't mind paying cash if this is a legitimate transaction, but how do we know?" (Curbed)
I like this question and I feel more comfortable answering it here (on my turf) than on Curbed.
Here it goes:
The reason why my brokerage prefers to be paid in cash on any rental (I am not talking about deposit - I am talking fee) for one main reason. What if the check bounces?
Ok, so renter's are leery of Realtors renting them an apartment and some have even asked why the tenants are paying the fee and not the landlord, when the ironic part of it all is the agent who is renting the apartment to the tenant is actually working for the landlord - not the tenant. Make sure you are aware of that.
But, just like the prospective tenant is leery of us - we are just as leery of the tenant. What recourse does the agent have if the check, oh say .. I don't know... bounces like Tiger on too much sugar?
Let's say that there is a lease that is fully signed and finalized, the tenant gets the keys and three days later moves into their new nifty apartment that the agent found them (after showing that tenant 5,6,10 apartments) and the check bounces or worse there is a 'Stop Payment" issued on the check? ( I say worse because that is a blatant act of cheating). Who does the agent contact to recover their losses?
So my short answer would be for the Curbed question is: No it's not uncommon nor is it out of line for that agent to request cash for payment of their fee - in fact, it is very common. Just get a receipt for any and all monies you ever leave anyone!
Comments