De-Mystifying NYC Real Estate Broker Commissions for Rental Apartments in Manhattan

De-Mystifying NYC Real Estate Broker Commissions for Rental Apartments in Manhattan

In most cities, it is the landlord that pays the broker to fill their apartments.  For apartments in Manhattan, it is the tenant that pays the 15% broker fee; which subsequently is based on the amount of the annual rental contract.  The reason is, it is a landlord’s market and always has been.  With the average price of a one bedroom home being $750,000, most people have no other option but to rent.

If NYC lofts in Tribeca go for $4000+, then you will need one month rent plus one month security ($8000), plus the 15% of the annual rental contract ($7200) to close.  This $7200 gets split between the 2 brokerage houses, plus the 2 agents involved; plus whatever transaction fees may be charged to the agents by their houses.  Contrary to popular belief, that whole amount does NOT go to your rental agent.

No fee apartments are those that a renter can directly find through the landlord.  Not all landlords are willing to deal directly with the public.  This is a good money saver if you have the time to walk building to building, get a hand me down apartment from a friend, and are less picky about what you can get for your money.  This is generally the most inefficient way of looking for an apartment, with a possibility of being scammed—but the cheapest.

Low fee apartments are where a landlord is willing to pay a certain portion of the broker fee to the agent to fill their unit.  This has all dried up with an April 2011 vacancy rate of .94%; hence, there is really no reason for landlords to pay concessions.

Working with NYC real estate broker is undoubtedly expensive, but in tight markets like these, it is worth every penny of your investment rather than trying to go it alone.  Keep in mind-- during high rental season, are the most lucrative times for scammers to strike.  With very limited inventory and lots of people looking, makes for very fertile hunting grounds.  Avoid being penny-wise pound foolish.

We specialize in Manhattan apts, rentals & sales:
Soho Lofts- Tribeca Condos - Greenwich Village Apartments - Upper East Side Apts-Upper West Side Apartments - Battery Park City Apartments -Chelsea Apartments- Gramercy Apts - Midtown East NYC - Midtown West NYC - Murray Hill in NYC - Lower East Side NYC - East Village Apts