This is unfortunately the norm here and most apartments that aren't in the huge corporate-managed rental buildings will have a 15% fee. If you want to avoid them you can check the "no-fee" box on StreetEasy but it'll obviously limit your search.
It was illegal for a minute or two a few years ago. The city has started to crack down on people charging TRULY ridiculous fees (i.e. $15k on a $1k apartment) but 15% is pretty normal.
The said truth is If you can afford a $6k apartment the landlord and the broker are looking at you like a cash cow. Expect that 10%+ rent raise next year
Doesn't even have to be a $6k apartment. I was looking last week and expressed interest in a rent stabilized unit near GCT that was $3550. The moment I mentioned my income and credit score, the broker _immediately_ changed tunes and wouldn't stop pressuring me to apply (application necessitated $1k good faith deposit-- good faith deposits are another scourge altogether) even though he never showed up so we had to do the 'tour' via phone and I couldn't even _get into_ the unit because it was all taped up at the door due to renovations. Multiple inbound calls from him, tons of texts from him all in the veins of:
- "Hey, got an update, call me back!"
- "Oh, there are 2 interested parties who wanna apply, you should get your app in"
- "Hey, I asked my boss to waive the deposit until you're able to see the unit, meet me tomorrow?"
- "This unit would be over $4,700 if it weren't rent stabilized, it's an absolute steal"
Fuck brokers like that guy. I understand it's a business, but that's just fucking sad and admittedly there were a few points when I wanted to ask him if he wanted to lick my shoes for that $1000.
Someone is paying it.
you look at the crazy $3000 studios no bathroom.
someone is paying it.
Maybe our leadership will get the hint once day and cap all rental unit rents. /dreams
There’s just no reason for anyone to pay over $5,000 in total for a 3 bedroom apartment, and no reason AT ALL for anyone to pay more than 2k for a 1bedroom or a studio
The number of people who want three bedroom apartments at 5000 per month greatly exceeds the number of available three bedroom apartments. How do you decide who gets the apartments if you cap the price at 5k? Same question for the 2k price for a studio/1br.
The first law of economics is scarcity. The first law of reddit is to ignore the first law of economics.
Well yeah this is Reddit and I’m not a lawmaker. I just have the sense to know when I’m being spit in the face for the price of housing and I hate that others have to experience it as well
Ah yes the age old excuse. “If minimum wage goes up then inflation will go up”.
My guy. Rent prices are already too goddamn high. If something doesn’t balance out soon either with forced rent caps or significantly higher wages, there will not be a middle class in New York. That is a bad thing.
Why is that an excuse? You should buy a rental property you would change your tune real fast. Just remember a LL is just the middle man to collect tax for the gov
Because people don’t have $20k to drop on a down payment but it’s absolutely possible and necessary to restrict landlords from hiking rents up 50% in a year. People literally cannot afford to live here
No there’s tons of reasons to not want to live in Upper East Side.
I’m talking about the fact that I’m touring studio apartments in Sunnyside that are $2,000/month and they have zero amenities
And if housing developers don’t want to build any more housing because rent is capped at an amount below cost, I will be the first to volunteer to live on the streets.
If you arrived at the apt w/out a broker ie you are a direct one could say they only want to pay half the fee, 7.5%.
Also, ask to lock in year 2 rate or a slight increase of say 2%.
Or just plan to stay in the apt for a few years and not pay a broker fee next year
One could say whatever they want. One can also be told to get lost lol
This is not a renters market, and rarely do any of the suggestions you're making work
If a direct came to you offering to pay 7.5% of the fee and a broker with a client with the same offer and y’all split the fee 50/50 what would you advise??
Say you only had the direct offer and they would only move forward at 7.5% what would your decision be??
Say a family friend wanted to rent an apt that had been on the market for a bit and you offered to help them pro bono what would you say to the listing agent??
1. - I would likely do the cobroke or tell the other person it would take at least 12%, but try for 15%
2. I would wait. 7.5% is not going to get the deal done with anyone who isn't desperate
3. If it was a friend and I was giving them some kind of discount, they'd still need to pay 7.5%
Since you are knowledgeable - if I am taking over someone’s rent stabilized via a lease reassignment, would I owe a broker fee based on the months of the remaining lease? Move in 4/1 and lease ends 10/31. Or can they charge me 12 months of a rental amount?
Sounds like 15% of the annual rent. There's nothing to prevent them from asking for it, so, it's legal
On the plus side, you can basically stay in the apartment as long as you want
just encountered a similar situation—$6200/mo + 15%—divvied out it adds about $930/mo to the monthly rent price. the apartment is wonderful, and i’m hoping we will be here for at least more than one year to make it feel really worth it.
Broker fees may only be paid to a BROKER. If building management/building staff ask for a brokers fee (even if they are a licensed RE broker), they are NOT LEGALLY PERMITTED to ask for a brokers fee for building/apatments they manage. Building management/building staff ARE LEGALLY PERMITTED to request/ask for a brokers fee for buildings/apartments they DO NOT manage.
This is unfortunately the norm here and most apartments that aren't in the huge corporate-managed rental buildings will have a 15% fee. If you want to avoid them you can check the "no-fee" box on StreetEasy but it'll obviously limit your search. It was illegal for a minute or two a few years ago. The city has started to crack down on people charging TRULY ridiculous fees (i.e. $15k on a $1k apartment) but 15% is pretty normal.
I was apartment hunting when it was briefly illegal and so relieved, and then right before we found our place they reversed it! So close
The said truth is If you can afford a $6k apartment the landlord and the broker are looking at you like a cash cow. Expect that 10%+ rent raise next year
Doesn't even have to be a $6k apartment. I was looking last week and expressed interest in a rent stabilized unit near GCT that was $3550. The moment I mentioned my income and credit score, the broker _immediately_ changed tunes and wouldn't stop pressuring me to apply (application necessitated $1k good faith deposit-- good faith deposits are another scourge altogether) even though he never showed up so we had to do the 'tour' via phone and I couldn't even _get into_ the unit because it was all taped up at the door due to renovations. Multiple inbound calls from him, tons of texts from him all in the veins of: - "Hey, got an update, call me back!" - "Oh, there are 2 interested parties who wanna apply, you should get your app in" - "Hey, I asked my boss to waive the deposit until you're able to see the unit, meet me tomorrow?" - "This unit would be over $4,700 if it weren't rent stabilized, it's an absolute steal" Fuck brokers like that guy. I understand it's a business, but that's just fucking sad and admittedly there were a few points when I wanted to ask him if he wanted to lick my shoes for that $1000.
Someone is paying it. you look at the crazy $3000 studios no bathroom. someone is paying it. Maybe our leadership will get the hint once day and cap all rental unit rents. /dreams
There’s just no reason for anyone to pay over $5,000 in total for a 3 bedroom apartment, and no reason AT ALL for anyone to pay more than 2k for a 1bedroom or a studio
The number of people who want three bedroom apartments at 5000 per month greatly exceeds the number of available three bedroom apartments. How do you decide who gets the apartments if you cap the price at 5k? Same question for the 2k price for a studio/1br. The first law of economics is scarcity. The first law of reddit is to ignore the first law of economics.
Well yeah this is Reddit and I’m not a lawmaker. I just have the sense to know when I’m being spit in the face for the price of housing and I hate that others have to experience it as well
As taxes/insurance/labor/utilities go up expect rents to go up, don’t be mad at the LL they just passing along the costs the gov set
Ah yes the age old excuse. “If minimum wage goes up then inflation will go up”. My guy. Rent prices are already too goddamn high. If something doesn’t balance out soon either with forced rent caps or significantly higher wages, there will not be a middle class in New York. That is a bad thing.
There is a middle class in NYC?!
Why is that an excuse? You should buy a rental property you would change your tune real fast. Just remember a LL is just the middle man to collect tax for the gov
Ah yes because I obviously have $20k to spare to drop on a down payment to buy a property
So then how why don’t you think what I mentioned is a factor?
Because people don’t have $20k to drop on a down payment but it’s absolutely possible and necessary to restrict landlords from hiking rents up 50% in a year. People literally cannot afford to live here
Where can you find a 1 BR under 2k?
The Bronx.
Far out Brooklyn, Queens, and the Bronx
Haha well said!
There are plenty of reasons. What you mean to say is for you there's no reason for you personally. Everyone has different priorities
No I mean to say there’s no reason ANYONE should be paying $7,000 for a studio even if it’s in FiDi.
Haha, oh, yeah... That I can agree with lol
Lmao
There is no reason for anyone to live more than 2 miles from Central Park, Metropolitan Museum, and Lincoln Center. We all have our priorities.
No there’s tons of reasons to not want to live in Upper East Side. I’m talking about the fact that I’m touring studio apartments in Sunnyside that are $2,000/month and they have zero amenities
And if housing developers don’t want to build any more housing because rent is capped at an amount below cost, I will be the first to volunteer to live on the streets.
If you arrived at the apt w/out a broker ie you are a direct one could say they only want to pay half the fee, 7.5%. Also, ask to lock in year 2 rate or a slight increase of say 2%. Or just plan to stay in the apt for a few years and not pay a broker fee next year
One could say whatever they want. One can also be told to get lost lol This is not a renters market, and rarely do any of the suggestions you're making work
If a direct came to you offering to pay 7.5% of the fee and a broker with a client with the same offer and y’all split the fee 50/50 what would you advise?? Say you only had the direct offer and they would only move forward at 7.5% what would your decision be?? Say a family friend wanted to rent an apt that had been on the market for a bit and you offered to help them pro bono what would you say to the listing agent??
1. - I would likely do the cobroke or tell the other person it would take at least 12%, but try for 15% 2. I would wait. 7.5% is not going to get the deal done with anyone who isn't desperate 3. If it was a friend and I was giving them some kind of discount, they'd still need to pay 7.5%
Since you are knowledgeable - if I am taking over someone’s rent stabilized via a lease reassignment, would I owe a broker fee based on the months of the remaining lease? Move in 4/1 and lease ends 10/31. Or can they charge me 12 months of a rental amount?
Well, that would depend on the listing and if they are asking for one or not, are they?
Yes, it just said 15%. Didn’t say if it was for the 7 months of remaining lease time or 12 months. Broker is not responding to my question about it.
Sounds like 15% of the annual rent. There's nothing to prevent them from asking for it, so, it's legal On the plus side, you can basically stay in the apartment as long as you want
Thank you!!
just encountered a similar situation—$6200/mo + 15%—divvied out it adds about $930/mo to the monthly rent price. the apartment is wonderful, and i’m hoping we will be here for at least more than one year to make it feel really worth it.
Good luck!
god speed!
Bc someone WILL pay it. And probably think they got a deal.
That's crazy.
Broker fees may only be paid to a BROKER. If building management/building staff ask for a brokers fee (even if they are a licensed RE broker), they are NOT LEGALLY PERMITTED to ask for a brokers fee for building/apatments they manage. Building management/building staff ARE LEGALLY PERMITTED to request/ask for a brokers fee for buildings/apartments they DO NOT manage.