Broker Fees -- How much is too much???

It all depends on the listing involved. If it's an incredibly rare property and priced to move I would expect to pay more than 1 month's rent. If it's mediocre or generic I definitely would not pay a fee. Only your knowledge of the market could help you determine what you're dealing with here.

No, your position is not unreasonable. But fees should have been worked out before this stage! What's up with that?

In any case, you could lose the property to somebody willing to outbid you for it fee-wise.....however, unless this is the Taj Mahal for a song, I don't think you have much to worry about. Good luck!

{Manhattan real estate agent.}

Why are you looking at places with a broker without a clear understanding about the fees? In this really weak rental market, why even entertain the idea of paying a fee?

Just today a Broker is asking for a 2 month fee on 2 year rental lease. is this normal. it seems quite outrageous.

have to agree with maly - do your digligence or money goes bye bye.

The deal is, the no-fee properties are not as nice as the fee apartments. Period.

cfoley, who cares if it's normal, tell the broker you will only pay one month for a two-year lease. It doesn't take any more work to find you an apartment for 1 year v. for 2 years.

But people, for heaven's sake, get the fee stuff straightened out with your broker before you go look at apartments! Don't be so scared to talk about money, this is your broker, not your brother-in-law! (At least, I hope for your sake they're not the same person)

{Manhattan real estate agent.}

We are currently filling out the application. I asked the broker for an all in cost yesterday and the broker said we'll see what kind of discount we can get you from the landlord and said no matter what the fee in neg. I like the place, it's not perfect, but it's the specific location that matters most to me and it has that. That said, I would def. be willing to walk if the broker started pushing the higher fee (like 2months for 2year lease). My view is that in this market on the margin the broker has more to lose than myself so it's a matter of finding that fair pricing point where they need to make the call on getting the deal done or not. Glad to hear some of you think my position is fair.

In the current market, a lot of landlord already pay a month fee to the brokers, or give the renter a month free. You're being taken for a ride.

"The deal is, the no-fee properties are not as nice as the fee apartments. Period. "

That is a VERY big claim to make with a city with this much variety among its housing stock. You sure you don't want to add "In general" to the beginning, and take out your all knowing "Period." ??? I would like your explanation on this, as you seam to be so sure of yourself. I am sure its much better for you, the broker.

As an owner who rents his own no fee apartments, and talks to everyone I show to, I hear the opposite from most people. They also say that brokers are constantly pushing fee stuff down their throats.

I also amazing by how many people don't know the price and the fee of apartments before they go see them. What info is more important than that? No wonder why brokers get such a bad reputation...

"The deal is, the no-fee properties are not as nice as the fee apartments. Period. "

Yeah, I think its totally backward.

The nicest rental buildings I've seen are through top-tier management companies.... which generally don't charge the fees.

And I've certainly seen planty of brokers with crappy walkups.

There is both with both.

There are thousands and thousands of apartments and hundreds, if not thousands of different owners. Some who rent themselves, some who pay broker fees, and some who give listings to brokers to get their own fees.

There are owners and brokers renting both crappy and nice walkups. There are owners and brokers renting places you can only dream of

This is why I was so surprised to see such a strong statement.

again agree with maly. why are you being so intransigent on this?.....why not just open your wallet or atm and give the money away - let's start the countdown clock to the "i got hozed" entry in x days/months

I just don't understand some rentals/owners. A nice but small studio co-op in WV, has been languishing for nearly 3 months and they
(owner/broker- they seem to act as one entity ) still insist on a 15% broker fee paid by the tenant. ( over 3k). I made it clear months ago I would have rented without the fee, or at least a drastically reduced one....so look at the money they have wasted already having it sit unrented. *boggles my mind* The Stubbornness.

For the record the broker simply requested 1 month independent of term (which I am fine with). I'll hopefully be signing the lease on Monday and provide more details then on my rational for having to pay a fee. Happy Halloween.

bluedahlia if you are open to renting on the UES, zip 10021, I am the owner of a studio that is coming available on Dec 1. It is in a co-op and requires a 1 year lease. I always have rented it out myself especially because I don't want someone to have to pay a broker's fee. I plan to post it in a few weeks so I can start showing it as soon as the tenant moves out in late November. However, if you are interested please email me at beckyg115 at gmail dot com

As for broker fees, I would feel like I would have to cut my rent/offer a free month or something in this market. Good brokers do earn their fees, though. When an agent lists a property and has open houses, returns phone calls and fields email questions about the apartment and so forth, that is certainly worthy of a decent fee. I know from experience as an owner (MAV you can likely speak to this) that sometimes a property rents really fast, and an almost identical one will sit for a while with little or no interest. By the time you factor in the cost of a NY Times Web ad plus the cost of StreetEasy ads plus the time invested showing on weeknights and weekends, answering a ton of emails or phone calls, etc., it makes the hourly return on the a one month fee pretty low for a studio, for example, if the place takes 2-3 months to rent.

"I just don't understand some rentals/owners. A nice but small studio co-op in WV, has been languishing for nearly 3 months and they
(owner/broker- they seem to act as one entity ) still insist on a 15% broker fee paid by the tenant. ( over 3k). I made it clear months ago I would have rented without the fee, or at least a drastically reduced one....so look at the money they have wasted already having it sit unrented. *boggles my mind* The Stubbornness."
__________

Could be many things, but from my experience what this looks like is the management company is telling the owner that they are not able to rent it, while they wait (at no cost to the mgmt company, just to the owner) for someone to sucker up and pay the fee. Things like this happen all the time when outside management companies are used by absenty owners...