Apartment hunting in New York City can be complicated thanks to NYC real estate-specific jargon. One such term you’ve likely come across is “no-fee apartment.” What does that mean? Well, using a broker to help you find a rental is standard ― but it’s not free. Typically, someone has to pay for the broker’s services, and in NYC, who pays that fee can vary from apartment to apartment. Here’s everything you need to know about no-fee apartments in NYC.
Table of Contents
Manhattan Rentals Under $3,000 on StreetEasyArticle continues below
Lincoln Square
68 West 69th Street
$2,495No Fee
Studio |
1
Washington Heights
444 West 167th Street
$2,950No Fee
2 |
1
East Village
542 East 11th Street
$2,600No Fee
Studio |
1
East Village
249 East 2nd Street
$2,395No Fee
Studio |
1
East Village
205 Avenue B
$2,295No Fee
Studio |
1
Yorkville
408 East 88th Street
$2,800No Fee
1 |
2
East Harlem
163 East 99th Street
$1,925No Fee
1 |
1
East Village
223 Second Avenue
$2,650No Fee
Studio |
1
East Harlem
164 East 112th Street
$2,990No Fee
2 |
1
Hudson Yards
407 West 39th Street
$2,695No Fee
Studio |
1
Fort George
612 West 182nd Street
$2,995No Fee
3 |
1
Hell’s Kitchen
330 West 45th Street
$2,825No Fee
Studio |
1
What Is a No-Fee Apartment Listing?
When searching for a place, you’ll likely come across apartment listings that loudly declare “no fee!” You’ll also encounter many listings that don’t. So what’s the difference?
In very basic terms, a no-fee apartment is an apartment where the tenant doesn’t pay a commission or broker fee. But, like so many things in NYC real estate, there’s more to know.
Brooklyn Rentals Under $3,000 on StreetEasyArticle continues below
Coney Island
1 Ocean Drive
$2,581No Fee
1 |
1
Prospect Park South
60 Turner Place
$2,000No Fee
Studio |
1
Stuyvesant Heights
859 Herkimer Street
$2,300No Fee
1 |
1
Flatbush
236 East 23rd Street
$2,000No Fee
2 |
1
Coney Island
1 Ocean Drive
$2,525No Fee
1 |
1
Crown Heights
1511 Bedford Avenue
$2,903No Fee
Studio |
1
Greenwood
168 21st Street
$2,500No Fee
1 |
1
Fort Greene
107 South Elliott Place
$2,500No Fee
Studio |
1
Windsor Terrace
21 East 4th Street
$2,500No Fee
Studio |
1
Columbia St Waterfront District
82 Congress Street
$2,795No Fee
Studio |
1
Weeksville
165 Schenectady Avenue
$2,900No Fee
3 |
1
Greenpoint
47 Russell Street
$2,450No Fee
Studio |
1
What’s the Difference Between Broker Fees and Commissions?
“The terms ‘broker fee’ and ‘commission’ are interchangeable,” says Becki Danchik, a StreetEasy Expert and broker with Coldwell Banker Warburg. “It’s the fee a broker earns on completing a transaction in which they match the right person with the right property. A no-fee apartment is typically when the landlord has agreed to pay that fee to the exclusive listing agent on behalf of the tenant.” A landlord will usually do this in the hope of securing a tenant quickly, she explains.
Landlords Have Brokers
Keep in mind, though, that “no fee” applies only to the landlord’s broker, also known as the listing agent, and landlords are not required to cover that cost (more on this shortly). Here’s how it works: if you approach an apartment’s listing agent directly and secure the no-fee apartment on your own, then great — you don’t pay a fee! But if you enlisted the services of a broker (who is not the listing agent), and you found that apartment through that broker, you owe them their commission, whether the apartment says “no fee” or not.
Queens Rentals Under $3,000 on StreetEasyArticle continues below
Astoria
43-14 28th Avenue
$2,000No Fee
1 |
1
Astoria
32-73 37th Street
$2,300No Fee
1 |
1
Jamaica
153-10 88th Avenue
$2,040No Fee
Studio |
1
Kew Gardens
83-15 118th Street
$2,700No Fee
2 |
1
Ditmars-Steinway
22-12 Hazen Street
$2,000No Fee
1 |
1
Maspeth
59-25 71st Street
$2,300No Fee
1 |
1.5
Ditmars-Steinway
37-09 23rd Avenue
$2,500No Fee
1 |
1
Astoria
25-23 43rd Street
$2,699No Fee
2 |
1
Astoria
28-34 42nd Street
$2,700No Fee
2 |
1
Astoria
2-24 26th Avenue
$2,900No Fee
1 |
1
Astoria
32-63 36th Street
$2,500No Fee
1 |
1
Astoria
37-01 30th Avenue
$2,400No Fee
1 |
1
What Is a Broker Fee?
Now that you understand the definition of no-fee apartment, you’d probably like to know how apartments with fees work. In short, renters who use a broker to find an apartment have to pay a broker fee. If you hire a broker who successfully finds you an apartment, they’ll earn an agreed-upon commission on the deal.
How Much Are Broker Fees for Renters?
The cost varies by broker and area. For instance, fees charged for Manhattan rentals may be more expensive than units in Queens, which has a lower median asking rent. Broker fees are somewhat negotiable, but generally, it’s either one month’s rent or up to 15% of the unit’s annual rent. That’s on top of paying your first month’s rent and security deposit. FYI: your security deposit can’t be more than one month’s rent.
Wait, Weren’t Broker Fee Abolished?
New York State changed the broker fee regulations with the Statewide Housing Security & Tenant Protection Act of 2019. The guidance issued stated that a prospective tenant can’t compensate a landlord’s agent (aka listing agent). It would have been a substantial cost-saving measure for future renters ― but a judge struck it down in April 2021, ruling that the state misinterpreted the act.
Sample Move-In Costs with a Broker’s Fee
Property owners or management companies will often ask for first month’s rent and a security deposit, in addition to the broker’s fee, before you can move in to a new apartment. Here is the estimated cost breakdown for a $3,799/month (NYC’s median asking rent as of July 2023 — to see the latest median asking rent for a particular neighborhood, visit our StreetEasy Data Dashboard) apartment with a 12 percent broker’s fee (percentage of total annual cost) — before even moving in!
Move-in costs for $3,799/month apartment
First month
$3,799
Security deposit
$3,799
Broker’s fee (12%)
$5,470.56
Total
$13,068.56
Hoboken Rentals Under $3,000 on StreetEasyArticle continues below
Hoboken
1034 Washington Street
$2,795No Fee
2 |
1
Hoboken
805 Park Avenue
$2,500No Fee
2 |
1
Hoboken
709 Willow Avenue
$2,850No Fee
2 |
1
Hoboken
404 Madison Street
$1,875No Fee
Studio |
1
Hoboken
204 Willow Avenue
$2,750No Fee
1 |
1
Hoboken
1008 Washington Street
$2,475No Fee
1 |
1
Hoboken
230 Monroe Street
$2,700No Fee
1 |
1
Hoboken
422 Hudson Street
$2,800No Fee
1 |
1
Hoboken
131 Madison Street
$2,800No Fee
1 |
1
Hoboken
210 Jefferson Street
$2,550No Fee
Studio |
1
Hoboken
82 Jackson Street
$2,850No Fee
Studio |
1
Hoboken
330 Jackson Street
$2,050No Fee
1 |
1
How to Find a No-Fee Apartment in NYC
You’ve decided you want to avoid paying a broker fee. Now, you’re probably wondering how to find a no-fee apartment. Here are a few options:
Use the no-fee apartment filter on StreetEasy: You can easily check the “no-fee only” box during your StreetEasy search to yield only apartment options without a broker fee. It will narrow your search to only those units.
Look for apartments listed by owners or management companies: A management rep is essentially an in-house broker — their goal is to find ideal tenants for their apartments. So, if you contact them directly, there shouldn’t be a fee. Just remember, property management companies rent apartments only in their specific buildings. Brokers, on the other hand, can have access to rentals in a variety of places.
Walk around the neighborhood: If you know the neighborhood you’re interested in, walk around it to see if buildings have posted listing signs. They should have the landlord or management company’s contact information. Call them and see if there are apartments available or if any are coming up.
Jersey City Rentals Under $3,000 on StreetEasyArticle continues below
Jersey City
58 Wales Avenue
$2,600No Fee
3 |
1
West Side
27 Corbin Avenue
$2,800No Fee
2 |
6
Jersey City
32 Magnolia Avenue
$2,500No Fee
1 |
1
The Heights
84 Reservoir Avenue
$2,699No Fee
3 |
1
Newport
40 Newport Parkway
$2,915No Fee
Studio |
1
Newport
40 Newport Parkway
$2,715No Fee
Studio |
1
Historic Downtown
204 10th Street
$2,885No Fee
1 |
1
Historic Downtown
204 10th Street
$2,845No Fee
1 |
1
Paulus Hook
116 Morris Street
$2,800No Fee
1 |
1
Jersey City
86 South Street
$2,498No Fee
1 |
1
Jersey City
59 Hutton Street
$2,375No Fee
2 |
1
Historic Downtown
180 10th Street
$2,935No Fee
1 |
1
Do No-Fee Apartments Save You Money?
Surface level, it seems that no-fee apartments would be less expensive to rent than fee apartments. But there is some debate as to whether no-fee rentals save renters money, particularly when it comes to luxury rentals. Many buildings like these are no-fee, but cost much more per month because they have desirable amenities such as doormen, fitness centers, and outdoor space. It’s also possible that for a no-fee apartment, the broker fee is baked into your rent and you end up paying more per month — but it still saves you on upfront move-in costs.
Whatever you decide, be sure to search for your dream rental on StreetEasy!