September 29, 2019
Renting an apartment in NYC is incredibly expensive. On top of sky high rents, the cash needed just to get the ball rolling is staggering. You’ll likely be required to come up with the first month’s rent and a one month security deposit. Worst of all is the broker fee but luckily you came to the right place! Yoreevo’s commission rebates aren’t just for purchases - they can help save a ton on rentals too!
A broker fee is paid to a real estate broker when renting an apartment in NYC. The details vary but you can be sure that if there's a broker involved in your transaction, someone is paying them. Most often, that's you - the tenant.
If you see an apartment advertised as “no fee”, you won’t be paying but the landlord still might be.
The rental market is particularly opaque and it's often difficult to figure out how much is being paid and by whom. When you're browsing apartments, the amount of the fee is rarely disclosed, making it hard to compare your all-in cost. You should always ask for the broker fee before scheduling a showing.
The most common NYC broker fee is one month’s rent. The highest you should see is 15% of the annual rent (or about two months).
To increase the odds of paying a one month fee, you should look on your own. That way there is just one broker to pay. If you also use another to assist your search, they need to get paid as well so you will probably end up paying 15%. You might be asked to pay 15% regardless but it's less likely.
Keep in mind all broker fees are negotiable and you shouldn't blindly pay what's asked.
A broker fee is paid when you sign a lease. It'll be due at the same time you make payments to the landlord such as the first month’s rent and a one month security deposit. All in, you're going to be asked for about three months of rent to sign a lease. It is an enormous cash drain!
It's no wonder there are companies which will pay your security deposit for a fee. Not many people have this much cash lying around!
In order to avoid broker fees, you need to avoid brokers (except Yoreevo!). The best way to do this is to look for landlords renting their own apartments or rental buildings which handle their listings internally.
On most websites, you can search for no fee listings and some even let you look specifically for landlord listings.
Remember, a no fee listing with a broker means the landlord is paying them so all else equal, the rent will be higher. For example, if the landlord wants to net $3,000 per month, they can charge $3,000 and have the tenant pay the broker $3,000 (one month). Alternatively, they could charge $3,250 and pay the broker $3,000 themselves. That would be a no-fee listing but the tenant is still paying the broker fee through the higher rent.
Yoreevo's broker fee rebates work just like our purchase rebates - we give you back some of the commission we are paid to represent you.
Large rental buildings are the best candidates since they’ll give you free rent and pay a broker fee. Yoreevo will split that with you so you actually get cash back for renting an apartment!
If the listing is with a broker, you'll still have to make a payment but Yoreevo will help lower it.
We can’t always help. For example, there's no fee on an owner’s listing so no rebate either but we'll let you know when that's the case. Please give us a call, email us or set up an appointment and we’re happy to dive into the details and let you know how we can help!