Q: What is a “No Fee” listing?
A: This means that you don’t have to pay a broker fee IF you see the listing without a broker representing you.
Q: If I see a “No Fee” listing with my broker, will I owe the broker a fee?
A: It is possible. Before you even start working with a broker, this should be a discussion you have with the broker. Some buildings will pay the broker fee on your behalf which is the best case situation for you.
Q: What are the different types of listings?
A: 1) “No Fee” where the building pays the broker fee.
2) “No Fee” where the building/owner is not paying the broker fee so the broker will charge you a fee.
3) “No Fee” where the building/owner is offering a concession to the tenant (typically 1 month free rent) OR will pay your broker fee.
4) A fee listing (on Streeteasy this is a listing that is NOT “No Fee”). With a broker this fee is 15% of the annual rent. Without a broker this fee ranges from 1 months rent
to 15% of the annual rent. You should not be paying 15% of the annual rent if you are not using a broker.
Q: Should I negotiate the broker fee down?
A: Yes, it never hurts to ask.
Q: What value does a broker provide?
A: A good broker will know the market and your area well. They will arrange showings for a diverse # of the best units to save you time and energy. They should set your expectations and make sure you have all the paperwork in order. Once you are ready to apply to a unit the broker will help make sure you actually get the unit. They will negotiate the rental price and terms for you, review the lease, and help answer any questions you have along the way.
Q: Do I need a broker?
A: No. You can navigate the NYC rental market on your own. However, this is not recommended if you are unfamiliar with NYC, have a tight deadline to move, or would like some help along the way.
Q: There is another brokerage that is advertising they don’t charge a broker fee. How can this be?
A: This is dishonesty at its best. For listing type #2 above, some brokerages will avoid these listings completely so they don’t have to charge a broker fee (eliminating about 20% of the inventory is not best for you). Furthermore, for listing type #4 above, some brokerages may claim that the owner’s brokerage is charging the 15% fee. The truth is that the 15% is split equally between the owner’s agent’s brokerage and the tenant’s agent’s brokerage. Any brokerage that claims they don’t charge a broker fee is being dishonest.
Q: I had a terrible experience working with a previous brokerage – what’s to say Elevated Stories will be different?
A: We don’t tolerate dishonesty and take our fiduciary duties very seriously. This includes obedience, loyalty, disclosure, confidentiality, accountability, and reasonable care. Our agents also receive bonuses based on customer satisfaction surveys. We care about the quality of experience clients have with us. We also solicit feedback from each customer to ensure we are continuously improving.
Q: How much money can I expect to pay to rent a unit from start to lease signing?
A: Let’s assume that the monthly rent is $3,000/month. You can expect to pay roughly $11,500 at lease signing. Below is the breakdown:
- $5,400 broker fee (15% of the annual rent)
- $3,000 security deposit
- $3,000 for 1st month’s rent
- $100 application fee
For co-ops, there will be a co-op board fee that ranges from $500-$1,500 in addition to the fees above.
However, if this is a luxury no fee building that is paying the broker fee, then you can expect to pay about $6,100 total.