Who pays the fee for a rental?

you can decide

Tenant-paid is disturbingly common in NY. But tenant will be willing to pay you a higher monthly rent if they don't have to also pay broker's fee.

You can choose, but it's a strategic decision. You can offer to pay the fee and simply ask more rent to cover it; or you can make the renter pay the fee and offer a rent that is more attractive.

The bottom line can be exactly the same for the LL.

If your apt is a co-op your first step is to check with management and/or board members.

I wonder what the readership is of the SE blogs.
http://ownyourhome.streeteasy.com/a-guide-to-negotiating-brokers-fees-for-nyc-renters-and-sellers/

Another clever thing is to have a high rent and for you to pay the fee in the form of two free months rent on a two year lease. I have had this arrangement more than once. Cash out of pocket is lower for you, and you can make the second and 13th months free to make it up to the tenant.

I will tell you that if its Harlem or above, or not one of the fancier parts of Brooklyn, LL paying the fee is more common.

you could rent it without a broker and make it NO FEE

Why not just post it as a "no fee" apartment, at a slightly higher price and it will keep you happy because of the price and the tenant happy since they don't have to cover any broker fees assuming they see it on SE.

The owners i work with do not pay the fee and time on the market has generally been less than 14 days for most of my listings.

They own buildings throughout Brooklyn, in hip and non-hip areas. You can charge a little higher rent when paying the broker fee...that being said, I prefer to rent to people that have the savings to cover the fee in the first place. It's a service like any other and I think tenants appreciate knowing that there is no padding of the rent going on.

jason10006
about 22 hours ago
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Member since: Jan 2009
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>Another clever thing is to have a high rent and for you to pay the fee in the form of two free months rent on a two year lease. I have had this arrangement more than once. Cash out of pocket is lower for you, and you can make the second and 13th months free to make it up to the tenant.

It's amusing that Jason falls for tricks more than once.

15% fee seems ridiculously high at least in the case of an easy to rent building. As a landlord , trying to get the highest net income, could you give an exclusive to a broker , but say the fee is capped at one months rent maximum , for example, and thereby, hopefully, obtain a higher rent ? Would brokers accept this ? Or just set s maximum fee of 3000$. Is it correct that any fee would be split between the exclusive broker and the tenants broker .

Or for a popular easy to rent building could the landlord just list on Craigslist and see how it goes -- and set it at a higher rent and say "no fee". How difficult is it to rent out and screen the tenant -- especially since creditworthiness will in many cases be obvious .

The point is not that the renter needs savings to pay the fee (if that was the issue you could just increase the deposit requirement !), and the fee for service rendered seems excessive.

>15% fee seems ridiculously high at least in the case of an easy to rent building. As a landlord , trying to get the highest net income, could you give an exclusive to a broker , but say the fee is capped at one months rent maximum , for example, and thereby, hopefully, obtain a higher rent ? Would brokers accept this ? Or just set s maximum fee of 3000$. Is it correct that any fee would be split between the exclusive broker and the tenants broker .

inoitall has done the analysis of the average income of brokers ... so, yes, I'm sure you could find a competent broker who would take this. The current system where the renter pays for the marketing expense of a landlord is not an economically efficient: transaction costs are too high.

SE, why?

Greensdale, a good broker will already lower their fee if it's too high to draw the tenant.

Look at my listing at 130 Hicks. http://streeteasy.com/nyc/building/130-hicks-street-brooklyn
I listed an apartment and it was on the market for 22 days (that included 8 days when I couldn't show). It carried a 12% broker fee and it was priced $280 higher than a no fee by owner listing. The by owner listing never rented. I found a great tenant within the first week and because I thought they were perfect for the apartment (low key qualified person that worked long hours), I was happy to reduce my fee in exchange for getting the owner a great tenant.

The client is the landlord and time on market/quality of tenant/rental experience is the marker of service.

reallynow
1 day ago
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Member since: Apr 2010
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15% fee seems ridiculously high at least in the case of an easy to rent building. As a landlord , trying to get the highest net income, could you give an exclusive to a broker , but say the fee is capped at one months rent maximum , for example, and thereby, hopefully, obtain a higher rent ? Would brokers accept this ? Or just set s maximum fee of 3000$. Is it correct that any fee would be split between the exclusive broker and the tenants broker .

Or for a popular easy to rent building could the landlord just list on Craigslist and see how it goes -- and set it at a higher rent and say "no fee". How difficult is it to rent out and screen the tenant -- especially since creditworthiness will in many cases be obvious .

The point is not that the renter needs savings to pay the fee (if that was the issue you could just increase the deposit requirement !), and the fee for service rendered seems excessive.

Need to be able to co-broke if taking an exclusive listing, this therefore, would not work.

Don't be so negative all the time Jim.

ok so whats the best way to rent, broker, no broker, fee, or no fee