Journal
Money6 min read

What brokerage actually buys you

A month of rent is the going rate in most Indian cities. Here is what that fee covers, and what it does not.

In Bengaluru, Chennai and Pune, one month of rent is the standard brokerage on a twelve-month let. On a ₹35,000 flat that is ₹35,000 handed over before you have spent a single night in the place. It is worth being precise about what you get for it.

The three things a broker genuinely does

A broker shortlists, arranges viewings, and applies pressure to close. The first is real work — knowing which buildings have stock this week is local knowledge that takes time to build. The second is logistics. The third is where the interests diverge: the broker is paid on the transaction closing, not on you being happy in month seven.

What the fee does not cover

It does not cover verification. A broker showing you a flat has usually not seen the title deed, the society NOC, or the owner's ID. It does not cover the agreement — that is a separate cost, typically ₹1,500 to ₹3,000 for drafting and stamp duty. And it does not cover any obligation after you move in. Once the deposit clears, the relationship ends.

The question to ask

Before paying brokerage, ask what specifically the fee is for, in writing. If the answer is "for showing you the property", weigh that against the fact that the listing is usually also online. If the answer includes verification and paperwork, ask to see the verification.

None of this makes brokers useless. It makes the fee a thing you should be able to price against an alternative, which for a long time did not exist.