Net Effective Rent vs. Broker Fee

Hanklin, isn't your math backwards. The rent is, for example, $5000 and the net rent is $4285, a 14% discount?

No fieldchester you totally miss the point. Apartment gets listed for $5,000 but the way they get there is the actual rent is something like $5,833 and they get there by saying you should factor in the 2 months which of course is one time only. Same for a broker they advertise $5,000 and then you got to pay the landlords friend a fee of 15% on top of that which makes it $5,750, way more than the rent advertised.

Anyone have better math than fieldchester on this?

My math and logic are pretty good. Your problem is you are looking at this rental RE market as if it is a commodities market with a single variable and with wholly logical participants on both sides. But with the owners, the renters, and the inventory, the reality is not so neat.

Hanklin, you are sort of arguing both sides of the coins here: if your complaint is that the problem with using the Net Effective Rent model is that the Base Rent is $5,833 and that is what will be used when the rent is increased then you can't also complain about the Broker's Fee model where the actual rent is $5,000 and then that will be used for the base when rent is increased. It's not as if you will have to pay that fee again when you renew the lease.

You brokers miss the point, or maybe that is on purpose. One thing is advertised, a low price, and the another higher price hits the renter. Fee, higher actual monthly charge, and now I've even seen these amenities fees in some of these buildings that gets more money out of you even though the buildings are advertised with these things in the description next to the listed rent.

So you are saying that brokers are advertising apartments as "No Fee" and then charging a fee? I highly doubt that.

This is all to deceive the renter rather than be straightforward and position the landlord better than reality. The price advertised is never the price or cost you end up with when these issues are in play.

By the way, exactly what are my comments being reviewed for? Is this a sensitive issue for Streeteasy too so I have to fall in line?

can this be bumped up?

bump?

Why was my comment on seeing more free months deleted? Hopefully a mistake and not protecting some of the rental companies.

Thanks for bumping up.

Hanklin - landlords will use that as an incentive to get tenants into apartments with a high-for -the-market base rent.. It's more cost effective to pay a broker's fee if you plan on staying there more than a year as your lease renewal will be based on the lower rent.

If you like the apartment, negotiate a lower price, if they balk, walk. Unless of course you think it's worth the Net Effective Rent based on your market research.