What exactly is a "low" broker fee?

lol

that is full - high - top of the market pricing. No reason to pay that in this market -- Many no fee rentals.

0..no buyer / renter should pay a fee in this market

The "rack rate" brokerage fee is 15%. In high demand times (i.e. not today) you can still get a fee down to 1 month (8.25%) if there is only one broker (the apartment owners') involved. Rental buildings will pay 1 month fee to rental agents in what to you is a "no fee" listing.

But on good properties today, sensible owners and educated brokers who aren't wasting time are listing them as "no fee" to get the property moving. That means that the owner is paying the fee, usually 1 month. In today's market it is wise for an owner to grease the wheels of getting a rental going. A month unrented is an asset that can never be recovered like an airplane seat that goes empty once the plane takes off.

Some owners are stubborn, they bought a new condo, shelled out lots of dough, and then the idea to them of spending $$ to pay the broker fee upfront, more cash out the door, feels hurtful to them and they might not be rational about it. Now, the broker needs to make some money, so make the broker your friend. Do that by coming up with an equivalent for you paying the fee ... e.g., at that point it's unlikely to be more than 1 month fee anyway, so if you get 1 (better 2) months of upfront rent free, then it works out the same for you, and you have the broker on your side - just be frank with the broker, say, listen, in this market the owner should be paying the fee but I know you have to get paid and I know some owners don't understand the market so let's both work it out so that I get two months free upfront ... because the rental buildings are offering two months free and paying the broker.

On the 15% in the hot market, it's a lot. You might look at your $3K rental and say that the fee is a hefty $5400 that you have to swallow up front. But what that really means is that your $3K / month rental is actually $3450 per month, a pretty big difference, if you are budgeting on a monthly basis.

This market today is for the renter, don't let anyone fool you. But keep in mind that if there's a broker there, and you want that particular apartment, let the broker "work for you", not for the owner especially if you are the one writing the check to the broker. Make the broker your friend and get the broker to negotiate fee down and get you the free months rent, citing the airplane seat example as being especially meaningful. And if the broker isn't cooperating, two days without a return phone call to a broker who makes money by doing rental deals is an ETERNITY.

Lastly, keep in mind that January is a bit tougher on the renter's side than February, March, April.

And if you are renting a condo, review my advice on this thread: http://streeteasy.com/nyc/talk/discussion/17348-condo-rental-question-is-it-normal-for-tenants-to-agree-to-pay-all-increases-in-common-charges-fees-and-taxes-or-to-pay-all-the-landlords-legal-fees-in-case-of-a-dispute

marco_m
about 12 hours ago
ignore this person
report abuse 0..no buyer / renter should pay a fee in this market

stupid comment. without knowing the details of the deal. there are PLENTY OF LANDLORDS RIGHT NOW WHO ARE NOT PAYING FEES. Some of them may be priced under market and it is worth it to pay the fee up front. that being said, 15% is indeed, top of the market as far as fee's go. only applicaple to very high-end co-broke type rentals.

Why was your comment so small? Anyone else see that?

Anyway, above in the 2nd to last paragraph, I meant to write, "Make the broker your friend and get the broker to negotiate _monthly_ _RENT_ down and get you the free months rent, citing the airplane seat example as being especially meaningful"

Jim I'd say that landlords not paying fees only seems to make sense to me if the apartment is under rent stabilization, or in the case I just cited above and they don't know better and aren't being rational.

your wrong, sorry. its about a 60-40 split right now in favor of landlords paying the fee, but that leaves quite a few that aren't. if their apartments are priced right, they still rent. usually at the lower and middle end of the rental range.

and by the way i am equally happy renting a fee or a no fee apartment, as the money is the same

doughnut...thats the fee you pay. rental market is in free fall

Thanks for the sound advice, splaken. While I could swallow a 15% Broker fee, that coupled with the condo app fee of 1400 and the pet security (for my cat) at 500 - things just kept adding up and it just turned me off a bit.

I will heed your advice when I and if I do find an apartment. Hopefully apartments will start popping up, my broker really hasn't found much for me these past few months.

Maybe I should start searching this site on my own!

Rent stabilized landlords have a strong case for not paying the fee.

Otherwise, ignorance is the only case I can see.

Yes, the condo app fee. Few tell you that upfront. Another thing to negotiate at least splitting.

Make sure your owner has told you that he has talked to the board president that he is renting and asked that the application be expedited.

On many apts in PRIME locations there is a 1 month fee attached (or a little more)it depends on

how "below market" the actual rent is.