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Fee Vs. No Fee Apartments

When searching in NYC Real Estate, home hunters may see listings like ‘no-fee apartments’ and wonder what it means? Does it mean ‘I will not pay for this apartment’ or ‘only the worst ones are no-fee’? However, the meaning of no-fee apartments is pretty simple in real life.

No Fee Apartments

Those apartments for which a renter does not pay a broker fee are called no-fee apartments. The broker fee is either paid by someone else or you directly meet the landlord to discuss the listing price. The broker fee is a price charged by a Real Estate agent to help you find an apartment that best fits your needs.

In some cases, such apartments refer to a unit where landlords find it difficult to sell their place and volunteer the broker fee to facilitate the renter. Before going for a no-fee rental, keep in mind these units may cost you more than a normal apartment with a higher monthly rent.

Fee Apartments

According to the normal standard operating procedure of NYC real estate, a renter pays 8% to 15% of the annual lease agreement to the real estate agent as broker’s fee. However, this fee is negotiable and depends upon the broker and area.

Do no-fees save money?

To answer this question, you must be well aware ofthe real estate market and do some math to compare the yearly rent of fee and no-fee rentals. Several no-fee apartments have luxurious facilities but you will find yourself paying extra rent for these amenities.

How to find a no-fee rental?

There are several ways you can find a no-fee unit in New York, some of those are:

• Search online – Websites like NY Rent Own sell have an option ‘No-fee only’, check this box before searching for a rental.
• Contact property owner directly – Meet the Management Company or landlord directly and negotiate agent price. This way you can take the broker’s fee out of the picture.
• Tap your network – Take to Facebook or send an e-mail to your university fellows and announce that you are searching for a rental. Walk around the neighborhood where you want to live and keep an eye on buildings with company’s info.