Broker Fee Versus OP Fee

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.

What is the management company calling the fee, exactly?

I can imagine all sorts of things (credit/background check, move-in, "sublet" fee (if it's a condo or coop) ... but these are almost always flat fees, not 50% of monthly rental price.

I'm no expert at this (having never paid anything more than a two-digit screening fee to rent an apartment), but I think "no fee" refers strictly to the keyturner's fee. It doesn't necessarily mean no fees of any kind. Please tell me I'm wrong ... I'd like to be.

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.

I would not pay the broker anything

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.

It means "NO FEE".
The broker is the one who wants to collect so it's the broker's responsibilty to put the fee requirement in writing.

Agree, romary.

No need to suggest that they take you to court.
No need for court.
It means "NO FEE".

>you'd rather enjoy the judge awarding you damages for false advertising.

Really? Damages for false advertising? Are these mental damages? Or damages for excessive "noise?"

This reminds me of the commercial where adults give things to kids to play with but yank them away.
Can't play unless you pay.

nonada
about 13 hours ago
Posts: 4285
Member since: Oct 2008
stop ignoring this person
report abuse

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.

Hey asshole, how does the OP finding an advertisement by someone else claiming this a no fee apartment mean that this broker isn't entitled to charge a client a fee for his service? Not saying that he should, but this wasn't his ad. So you are way off, as usual.

Did anyone collect inoitall's damages for false advertising?

fuck off

There is no such thing a a "fee apartment" or "no fee apartment". Whether you pay a brokerage commission to rent an apartment is entirely a function of whether you found the apartment, and viewed the apartment, through a broker or not. If you found the apartment on your own, contacted the owner on your own, and signed the lease without the involvement of a broker, you don't owe a broker's fee. If you found the apartment though a broker, viewed the apartment with a broker, used the broker to get you the leases, then you owe the broker a broker's fee. Same apartment. You can see more about this with this excellent renter's guide; The Essential Guide For Smart Renters at this url: http://www.rent-direct.com/rentingguide/Welcome.html .

Hang on there. It is also common for an owner to decide they will pay a broker's fee as part of their overhead expenses, making the apartment "no fee" for the renter despite the renter dealing with a broker/agent rather than the owner or the owner's employee.

So while you can be sure the broker is getting paid somehow, if you found the apartment through an advertisement that said no fee, you can reasonably expect not to pay a broker fee even if a non-owner shows you the unit.

you SHOULD reasonably expect

If the apartment was 1/2 OP, you're responsible for the other half. However, that should've been explained upfront by the agent telling you the fee was 1/2 a months rent.

>1/2 a months rent.

and most certainly not 7.5%.