Broker fee of $5940

Welcome to New York. This is the way it works on all apartments unless stated otherwise.

This must be one of those new renters “flocking” to NYC The Real Deal was touting in that shill article they wrote.

There was a wisp of chance broker fees would be reformed.

But the State will do nothing to protect the rich, er, flockers. They will be paying the tab for what's ahead. (and pensions on that behind)

I'm glad there's still one NY property virgin. We need 71 more for a flock.

At this point in NYC I think the default is that if a listing is silent then it has a brokerage fee and if it's a "no fee" listing it clearly says so. That is certainly subject to change based on the current lawsuit regarding rental brokerage fees.
https://therealdeal.com/2020/06/11/broker-fee-ban-courtroom-showdown-pushed-again/

I've always felt the owner should pay a broker that rents out their property for them. However to paraphrase "fees are just too damn high!"

One of the big issues has always been the way agents share their Commission in New York with their brokers. If rental agents were keeping 80 or 85% of their Commission, they could afford to pass the savings on to their clients. Better yet they would not be affiliated with a major brand and join forces with a company like EXP, where they can keep 100% of their Commission, after paying some monthly fees. The entire system as it is creates a very cut-throat and somewhat shady rental business. As some others have pointed out here, there's just too many damn agents in New York City!

When I started my company in 2007 I was only doing rentals, the model at the time was based on reduced rental commissions/full service. I never charged more than a month, and typically charged half a month. If I received a one month commission from a landlord, I would offer my client a gift card for a meaningful amount of it. If the apartment they wanted was exclusively listed, I would negotiate the best reduced commission I could with the listing, and then significantly reduce my own commission. This works because I did not have to share a significant portion of the money I received with a brokerage. The same way it works for me today. That savings finds its way back to the client, and I accept the reduced dollar amount, I don't expect the listing agent or seller to shoulder that cost.

I found that the clients I worked with were more than happy to pay me a reasonable fee to do all the work for any listing that I introduced them to. I was also able to add value by making the process very efficient, certainly my relationships with owners and large landlords could make the process a bit less painful.

In my experience I found when you're adding value literally as well as through the service you provide, it's a winning combination to build a successful business. And it's really a win-win for everybody involved, clients, agents and owners.

However New York is very stuck in its ways, change comes hard.

Keith Burkhardt
TBG