What is the Average Rental Broker Fee in NYC? https://www.hauseit.com/average-rental-broker-fee-nyc/
Save Money with a Hauseit Buyer Closing Credit: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
Rental broker fees in New York City are notoriously high. The most common rental broker fee in NYC is either one month of rent or 15% of the annual rent. The amount of the broker commission on a specific listing depends on what has been negotiated between the landlord and the listing broker.
While a 15% rental broker fee is the norm for luxury rentals, it’s more common to see broker fees of one month of rent for less expensive properties. There has been an increasing trend towards ‘No Fee’ rentals over the past few years in neighborhoods of the city which have a higher supply of available apartments.
Who Pays the Rental Broker Fee in NYC? https://www.hauseit.com/who-pays-broker-fee-when-renting-nyc/
It’s customary for the renter to pay the rental broker fee in NYC. This is quite different from in the rest of the country, where it’s fairly typical for the landlord to compensate the rental broker.
The reason why renters in NYC typically pay the broker fee is due to market dynamics. Simply put, limited apartment inventory and strong demand from renters lets New York City landlords get away with having the tenants pay the rental broker fees.
Why Are There Broker Fees for Apartment Rentals?
Rental brokers in NYC have a bad reputation because of the seemingly high broker fees being charged relative to the work it takes for a broker to actually rent an apartment. While not all rentals are easy tasks for brokers, the truth is that some apartments more or less rent themselves.
In the case of a straightforward rental, it’s easy to see why tenants are frustrated by the broker fee being charged. From the tenant’s perspective, all the broker did was open a front door and show up a week later to collect a broker fee and have the tenant sign the lease.
Regardless of how much work is actually involved for a rental broker, most NYC landlords simply don’t have time to deal with the hassle of finding tenants. Furthermore, most landlords don’t care how much the broker fee is because they do not have to pay it.
Landlords care much more about negotiating down the average 6% broker commission on sales, as this commission is paid directly by sellers.
How Negotiable Are Rental Broker Fees in NYC?
From the perspective of a landlord, rental broker fees are just as negotiable as broker commissions on sales in NYC. It’s possible but extremely difficult to negotiate down the broker fee.
A savvy landlord who understands the cost and risks of prolonged vacancy will want to make sure that the all-in cost of the rental from the perspective of a tenant (factoring in broker fees) is in line with comparable units.
Smart landlords will often try to negotiate down the rental broker fee being charged by the broker, even if the tenant is paying it.
What’s the Typical Real Estate Commission on Sales in NYC? https://www.hauseit.com/whats-typical-real-estate-commission-in-nyc/