We just signed a lease for an apartment in Brooklyn and the broker is telling us we need to pay a half of one month of rent fee. The listing on streeteasy we actually jumped on did not list it as a fee apartment. We haven't signed anything agreeing to pay a fee. Two listings on street easy explicitly list the apartment as No Fee. When we signed the lease, the management company told us (after my roommate brought up that we had the fee checks...) that we should make it out to the building LLC (where our rent go). Are we getting screwed into paying the OP fee for the broker or is the broker trying to get paid twice? Thanks.

Did you at any point prior to lease signing agree to pay a fee to anyone?

We didn't agree to anything or sign anything. We we're told by the broker, whom we initially saw the apartment with, and questioned the fee. The application, etc was all processed and done with the actual building management. The broker did nothing besides show the apartment that we found on street easy.

The management company is calling the fee a broker's fee. Even know they acknowledged that the building is an OP building (which means "owner pays" fee building). The two conclusions we have come to is that either the broker is making double or the management company/building owner is just playing along so we pay the OP fee directly.

Sounds like the "OP" is covering a month's worth the fee, and the broker is trying to get 1/2 month's worth of a fee to round things up to 15%. Regardless, the property was advertised as NO FEE in two different listings on streeteasy, and you signed nothing with the broker stating you would pay him a fee with regards to this property. Rentals 101 for any agent: if you are going to expect a fee (even for just opening a door), get it in writing. He or she failed to do this, and he or she is most likely getting paid the OP from management. Although I resent people going around my back to get away from paying a fee, this situation does not sound like that. If it were me, I would not pay the agent a fee.

pay nothing. mog is there a transaction in this city that doesn't involve someone with their greedy hand out?

sport it sounds like this is more on the broker than on you, but I don't understand how two people who have a business relationship meet to transact business without discussing the details of payment. In the future, you might want to say "I understand that this is a no-fee apartment, so you're getting paid by the landlord, right?"

ali r.
DG Neary Realty

FP, what do the advertised words "NO FEE" mean to you?

Sport, it sounds like the management company already paid the broker the fee. The broker tried to squeeze you for more without telling the management company. The management company figured they already paid the fee to the broker, so if anyone should be getting fee money from you, it should be them.

This should raise a big red flag w.r.t. the management company for you. The proper response from them would have been to tell you to keep the money and smack the broker. So know that they tolerate unethical behavior (which is a trait common to unethical people), and they will take advantage rather than the high road if given the opportunity.

On the fee, first get printed copies of the no-fee ads. If anyone tries to make noise about collecting a fee from you, show them the ad and explain how you don't enjoy being screwed. If they make further noise, suggest that they take you to court over the matter: you'd rather enjoy the judge awarding you damages for false advertising.