Rental Basics in SoHo>Question Details

William Cohan, Renter in SoHo, New York, NY

Are no fee apartments always worse than fee apartments?

Asked by William Cohan, SoHo, New York, NY Fri Jul 30, 2010

I was looking at some no fee apartments in soho ny and they were all horrible, should I give up on that quest and start looking apts that have a brokers fee?

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William I am sure you should be able to find a "No Broker Fee" @ Soho, though it might not be the best quality or something high end. Again it all depends on your budget. But all I can say NYC market is bouncing back, compare to last year this year I am seeing less vacancies, higher rent, less free rents and stuff which is kind of self explanatory about whats happening.
I would love to help you in the event if you are still looking and in the need of a Realtor.

Cheers :)
Anu
Web Reference: http://www.werentny.com
1 vote Thank Flag Link Wed Aug 4, 2010
Rental market last year was extremely busy and many landlords either stopped paying fees to brokers or cut them dramatically, switching this burden to tenants, so that there were and still are not that many "no fee" choices. Now I see more and more when high- end properties or landlords that want to rent quickly or do not have a well-marketable product starting paying broker fees again. Usually price in these apartments is on a higher range of the market and, although you save on commission when getting it, your rent increases will start off a higher level, while many of the fee apartments are on a lower price range and, if you stay there long enough, you could be still getting a better deal on rent than at higher priced no fee apartments. Just sit down and do the numbers.
0 votes Thank Flag Link Wed Jan 16, 2013
Not necessarily. Many landlords offer incentives such as no-fees to get their properties rented. They either market the property themselves or pay the broker. Buildings that were built for rentals often offer no-fees. In general, Higher-end properties (condos) are owned by individual investors and they hire brokers to handle the marketing and screen potential tenants, so these units usually have brokerage fees.

If there is a fee, try to negotiate. Brokerage fees are negotiable like any commission. Brokerage fees generally range from 10-15% of the first year's rent in NYC.

An experienced Broker will be able to steer you towards listings that offer incentives if you're trying to save a few bucks.

Visit: http://www.elliman.com/gjm The most comprehensive list of rentals/sales listings in the NYC metro area. Our firm handles more than 50% of the rental transactions that occur in the city each year.

Hope this helps!

Glenn Minnick
Senior Vice President
Top 1% Producer Nationwide
Prudential Douglas Elliman
0 votes Thank Flag Link Fri Sep 24, 2010
William I am sure you should be able to find a "No Broker Fee" @ Soho, though it might not be the best quality or something high end. Again it all depends on your budget. But all I can say NYC market is bouncing back, compare to last year this year I am seeing less vacancies, higher rent, less free rents and stuff which is kind of self explanatory about whats happening.
I would love to help you in the event if you are still looking and in the need of a Realtor.

Cheers :)
Anu
Web Reference: http://www.werentny.com
0 votes Thank Flag Link Wed Aug 4, 2010
William,
"No fee" means one of two things - either you are dealing directly with the landlord/owner or they are paying the real estate agent's fee. Concessions like paying the agent's fee or giving you a month free occur when the market is bad. The rental market is good, so you are not likely to find such concessions. Most better apts. will be listed because the owner wants a thorough screening done.
My office is in SoHo and I can tell you it's a very tight market right now because all the NYU, Parsons, New School and Cooper Union students have snapped up the apts. You will probably need to pay the customary fee which is 15% the first year's rent. Also you will need to meet the standard affordability formula which is that you need to earn 40 times the monthly rent as your yearly salary. If not, you will need a guarantor who will need to earn 80 times the yearly rent in a year. You and your guarantor will also need high credit scores.
I do need to warn you that when it comes to rentals, unfortunately there are some very shady companies out there. You must stick with a company with an impeccable reputation. And never trust craigslist - it is full of bait and switch scams.

Hope this helps.

Jenet Levy
Halstead Property, LLC
jlevy@halstead.com
(212) 381-4268
http://jenetlevy.halstead.com
0 votes Thank Flag Link Sat Jul 31, 2010
William,
The rental market this summer has been very busy. The vacancy rate is under 1% in Manhattan right now & inventory is at an all-time low. Landlords have done away with incentives like paying the broker's fee. Have a look at this article from the Wall Str Journal & posted on our web site describing the current market...

http://www.citi-habitats.com/press/viewarticle.php?article_id=3103

This gives you average rental prices by neighborhood as well. I do a lot of work in Soho & if you're looking for interesting loft space, you don't want to limit yourself to "no fee" situations.

If you decide that you're ready to work with a broker, I'd be happy to help you...

Best,
Linda Taitelbaum
Citi Habitats
212 844-4342
ltaitelbaum@citi-habitats.com
http://www.lindataitelbaum.com
0 votes Thank Flag Link Fri Jul 30, 2010
William, it's always good to consider all options within your budget. Best of luck!
0 votes Thank Flag Link Fri Jul 30, 2010
that is why its a no fee apt. they need to rent it asap.
0 votes Thank Flag Link Fri Jul 30, 2010
Not necessarily. However as a tenant keep your options option, look at both, and when you find a couple of apartments you like compare them while factoring the fee into the rent and base your decision off that.
0 votes Thank Flag Link Fri Jul 30, 2010
A month ago I would told you to keep looking, but now in this market: keep your options open and look at both.
Give me a call so we can further discuss your situation.

917 710 3542
Web Reference: http://citi-habitats.com
0 votes Thank Flag Link Fri Jul 30, 2010
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