Rental Basics in New York>Question Details

Eva Mizer, Home Buyer in New York, NY

Fee vs No Fee? Which is better for renters?

Asked by Eva Mizer, New York, NY Thu May 2, 2013

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Joseph C. Hastings’ answer
Hi Eva. The question has an answer but it's in relative terms. The obvious aspect to no fee at first blush is there would be no brokers fee attached to the rental process so this way, the renter saves money. Most no fee apartments are in managed buildings, as they pay our brokers fee. They may have multiple units and many have amenities as well. This all comes with a price tag. According to Miller Samuels, the foremost appraisal firm in Manhattan, the average price of a rental is about $3900 a month. The Vacancy rate is below 1.5% which translates into very few rental units available. This scarcity can make prices go higher. With a Hot Spring season and a sure to be Hotter Summer season on tap, prices may spike as stock dwindles.

If you rent in a small building, perhaps by a private owner, it may have a fee attached. You might find an option somewhat below market rates as smaller guys have a more immediate need to keep their building fully rented. In short, you might pay more on average with a no fee apartment than a fee listing at a lower monthly rent. Again all things are relative. You could also luck into something unexpected. Good Luck.
1 vote Thank Flag Link Fri May 3, 2013
The "no fee" apts. are those where you go directly to the management company. This might work for you. However, if you would like the convenience of being able to see a wide variety of apartments, those which are exclusive listings of agents as well as those offered by the better management companies, using an agent will give you the opportunity to see all in your range in your neighborhood of choice. Some management companies are, frankly, slumlords. Agents know which to avoid.
0 votes Thank Flag Link Wed May 8, 2013
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