Renting in NYC: The Ultimate Guide
Don’t put your fate in the hands of a shady broker. (Source: rangers681.1111 via Flickr Creative Commons)
In theory, hopeful renters hire brokers to help them navigate the daunting task of finding the perfect NYC apartment. But how do you know if your broker is trustworthy? Watch out for these five warning signs that your broker might not have your best interests at heart.
1. They Don’t Respect Your Budget
Brokers’ commissions are calculated based upon the rental price of their listings (typically about 15 percent of the annual rent). Consequently, they have a lot to gain by pushing you above your intended budget. While some degree of price pushing comes with the territory, avoid working with brokers who immediately write off your budget as “unrealistic,” or repeatedly try to sell you on listings that are “just slightly above” your upper limit. Remember, NYC is a big place and you can almost certainly find something in your budget, assuming it’s within reasonable limits. Don’t let a shady broker swindle you into over-committing on something you can’t afford, no matter how convincing their tactics.
PRO TIP: Don’t tell a broker your true upper limit from the start. Since they typically show apartments at the high end of your budget, you’re better off starting low and increasing later if you need to later.
2. They Downplay Your Requirements
Brokers are notorious for saying anything to make a deal. This includes trying to talk you out of the things you initially felt were important. For example, if having a gym in the building is a top priority, be wary of a broker who tries to convince you to join a gym around the corner. Similarly, think twice before trusting brokers’ oft-empty promises about new additions that will be made by the time you move in. This happened to one Brooklyn renter who felt deceived by the promise of a furnished roof deck in her new building: “When I was looking at the apartment, the broker promised they’d have deck furniture in a month. Cut to one-and-a-half years later when they finally installed the “furniture” (a.k.a. two plastic lawn chairs and a picnic table from Home Depot).”
Don’t Be Fooled by the Hidden Costs of Renting a Luxury Apartment
PRO TIP: Don’t feel bad for the broker or obligated to rent something that doesn’t meet your criteria. They might have spent time showing you apartments, but they haven’t spent the right quality time if you aren’t finding what you asked for. Bottom line: Don’t settle just to appease the broker. Rejection is a big part of their job!
3. They Rush You or Brush Off Your Questions
Many NYC brokers approach their job as a numbers game. They schedule several back-to-back showings each day, banking on at least one of these showings to result in a rental. As a result, these busy brokers are often brusque, distracted, or cutting corners during showings. When working with a broker, keep in mind that the broker is ultimately working for you. In exchange for their hefty fee, you deserve someone who will take the time to facilitate the process and attend to your needs. If a broker makes you feel guilty for asking questions or brushes you off, it’s probably best to move on.
PRO TIP: Ask for recommendations from friends or coworkers who’ve had positive broker experiences. Alternately, you can read reviews on Yelp to check for any red flags before signing on to work with a broker.
4. They Pull a “Bait-and-Switch”
“The bait-and-switch is a tactic in which the broker lures you in with a great apartment that meets all your criteria and fits your budget. They convince you to act fast and submit a non-refundable application fee and credit check fee. Next thing you know, the dream apartment is “no longer available,” but you’re stuck working with the broker since you’ve already forked over two or three hundred dollars.
Another variation of the bait-and-switch is when you schedule a viewing for an attractive listing online, only to learn that you are “too late” when you meet up with the broker. The broker then tries to show you other, less desirable apartments, since they’ve already tricked you into meeting with them.
PRO TIP: If a listing seems too good to be true, it probably is! Make sure to do your homework before paying any fees or committing to working with a potentially shady broker. This includes reading online reviews, verifying the listings on StreetEasy, and looking closely to check whether the dreamy pictures online seem legitimate.
5. They Pressure You With “Competing Offers”
While it’s true that the NYC renting scene can be very competitive, be wary about brokers who try to pressure you into acting quickly at the expense of your own needs. For example, many brokers will urge you to move in early or pay a higher deposit to avoid losing your dream apartment to another renter who may or may not exist. This happened to one Brooklyn renter when she found a great apartment in Williamsburg last summer: “I ended up signing my lease two weeks earlier than I wanted to and paying double rent because the broker pressured me with competition from another renter who was willing to move in early. In hindsight, I suspect that there wasn’t really another renter.”
PRO TIP: Before giving in to pressure from a pushy broker, check StreetEasy or Naked Apartments to find out how many days the apartment has been on the market. Many brokers use this fake competition tactic to fill apartments that have actually been sitting empty for weeks.
6. They Pressure You Into Making a Decision on the Spot
Acting fast is the name of the game when it comes to renting an apartment in New York City so it’s advantageous to be decisive. That said you should be the one who decides when to pull the trigger, not your broker. All too often brokers coerce renters into acting on the spot, signing paperwork and forking over a check because they want to make a deal or think you will cave regardless if it fits your needs. It is your apartment and your prerogative to decide if it’s the place for you.
7. They Steer You Away From Certain Neighborhoods, Buildings or Apartments
A broker cannot discourage a renter from seeking housing in any given neighborhood or building as part of the Fair Housing Act. The what? For some background, the Fair Housing Act is a federal law that was passed in 1967 to discourage racial housing discrimination and to this day serves as a vital form of protection for renters and buyers who have experienced biased treatment due to a variety of personal characteristics (i.e., disabilities, race, age, gender, income level among others.)
A common form of housing discrimination is a practice called “steering,” in which brokers discourage clients from seeking housing in a certain area and encourage them to seek housing in a different area. It is often hard to detect when you have been the victim of housing discrimination, but if you are consistently getting push-back from your broker about certain buildings and areas, this could be a red flag. If this is the case for you, consider working with a different broker who is more responsive to your needs and desires.
[This post first appeared in June 2017 and has since been updated.]
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