Rental Basics in New York>Question Details

Sopranoinsha…, Renter in Bowling Green, OH

What would the broker fee be in NYC if I'm planning on short-term renting (3 months) an apartment found on a broker's site?

Asked by Sopranoinshadow, Bowling Green, OH Fri Apr 13, 2012

However, they're not actually showing me any places physically since I'm from out of state. Does that still count for them to charge a 15% fee/ one month's…

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Hey,

It is half month to one month broker fee.

And It really depend on two facts:

- Either there is 2 brokerage firms involved in this transaction so they have to share equally the broker fee.

- Either only one brokerage firm is involved so they can try to accommodate you with the fee and get you set up.

For this part when you say: "However, they're not actually showing me any places physically since I'm from out of state. Does that still count for them to charge a 15% fee/ one month's…", this is a service job. Even if you order food online, you still pay an additional service charge or delivery. This is real life not a joke.

Warmest Regards,

Raoul Sodogandji
Global Market Specialist
Licensed Salesperson

(o): 212.252.8772 (EXT.782)
(c): 347.993.8333
(e): raouls@nestseekers.com
1 vote Thank Flag Link Fri Apr 13, 2012
Broker fees vary according to the specific situation, just like many other things in life,and broker fees can range from 9% to 15% typically, of a full years rent. In other words, the fee is negotiable in some cases, depending on the broker . Also the dollar ammount of the fee is based on a percentage so the actual dollar ammount is also a function of how much the rent is for the particular apartment that you want to rent. Re: for "short term renting" , the vast majority of rentals on the market are 1 year leases, and that would have to be negotiated first, The broker fee, if any, would be a percentage of the actual ammount that you rented, not on a full years rent,
There are also no fee apartments and brokers have access to these as well In this case the landlord or management company pays the fee, so you dont have to pay a penny. Being from ":out of state" is totally irrelevant as you can now see, as many people are from "out of state " and they all move here anyway, and use brokers when they choose to . ,The answer to your question re broker fees is still the same i explained above
Incidentally, there is no other fee to use a broker, so you may talk to them as much as they are willing to talk to you and there is no charge for their time . (unless u actually rent out an apartment from them and it is a fee situation as explained above.)
However, you will prob ably have a very difficult time renting out an apartment with a one year lease if you only want it for 3 months, in any case, unless you pay the entire 3 months rent up front.
Best bet is monthly rentals which are no lease situations.
1 vote Thank Flag Link Fri Apr 13, 2012
Hello everyone! Thank you so much for your responses! I'm going to try and answer everything as best I can:

I've seen some furnished rentals that are specifically for short rental on this specific broker's site. I've called and left a message to ask a few questions, so I don't even know if they'll get back to me or not. I was actually gong to see if whoever got back in touch with me would be able to show me some sort of video of the apartment, just so I could get a feel for it. But that's about it. I'm under a specific budget, so I know not to expect much.

As for the subletting, I have looked on almost every site I could to try and find something-- some sites just looked really shady. However, the places I found for subletting were either unavailable for the whole time I would be there, or above my budget. Unfortunately I had to make a budget specifically for housing through a grant from my school, and because of some issues, my previous plans for housing in New York are no longer available. So now I'm stuck with a budget that doesn't really fit well for living in New York, and I'm just trying to see what options I do have.
1 vote Thank Flag Link Fri Apr 13, 2012
A brokers fee on a short term lease is typically one month rent. In NYC brokers fee is payed by the tenant and not the owner ( like in other parts of the country)

Keep in mind furnished and short term apartments, typically cost 20% more then traditional 12 month unfurnished lease. So if the advertisement looks like it is too good to be true... It probably is!

If you want to discuss it further don't hesitate to ask.

Good luck with your search!

Konstantin
1 vote Thank Flag Link Fri Apr 13, 2012
The top firm will charge 1/2 month's rent for 1 month, 1 full month for anything form 2-5 months and 15% of the annual rent for anything 6 months or more.
0 votes Thank Flag Link Sat Mar 1, 2014
Yes, the transaction can still warrant a broker's fee. Usually one month's rent depending on the area you are specifically looking for.
0 votes Thank Flag Link Sat Jan 25, 2014
Hi Sopranoinshadow,

In reality the only answer any professional can give you is a range from 0% to 23%. The Department of State forbids discussions of broker's fees, they feel it tends to fix prices, something along those lines. My best answer to you will be: It is whatever you both agree on within the percentile stated above.

It is very unlikely to use a broker for a short term rental without paying a fee in NYC. Hope that helps.
0 votes Thank Flag Link Sat Jan 18, 2014
There is no set answer because in real estate the amount is always negotiable. I'd say a common fee would be 1 month rent but you try to get it down to a half month.

Joe Chaplin- Prudential Douglas Elliman- (212) 891-7178
0 votes Thank Flag Link Fri Apr 13, 2012
First of all, most rentals you find on most brokerage websites require a one year lease. So make sure you're searching a database with a 3 month lease option or you are wasting your time.

Craig's List is rather perilous these days because there are so many scams there--among other problems. But it is a good source. What you might want to do it identify some apartments on CL, and then hire a broker (our term for agent) to check them out for you. Or, hire an agent to find you a short term rental from any source. I have done Craig's List investigations for out-of-town renters.

Regarding your commission question: Commissions are always negotiable, by law, but individual agents and their firms may have set pay expectations. Professional help costs money. Unlike most parts of the USA, in NYC tenants pay the brokerage fee instead of the landlord (who just incorporates the fee into your rent anyway).

Out-of-town renters are actually more work than locally based people, in my experience, because they often have paperwork problems and they don't understand how things are done here, and they don't know the area well and it just takes a lot of time to assist them.

Your agent simply must see the apartment in person even if you're not here, and send you a video, or you would be quite daring indeed, not to say foolish, to rent it sight unseen. Make sure your agent discloses as a tenant's broker (which is the only way I work in these cases) and then you know the agent has a fiduciary responsibility to you, not to the landlord.

Another avenue to consider is vacation rental websites. People who own condos can rent them out as vacation homes as private individuals, and there are several sites that owners pay to use for this purpose. I'd investigate both the website and the homeowner carefully if i were you; some of these sites do a pretty good job of checking owners out. You could obtain broker/agent assistance with this as well, but the website might offer enough guarantees to give you confidence to go it alone. Best of luck to you!

Karla Harby
Lic RE Salesperson
Rutenberg Realty
212-688-1000x146
kharby@crrnyc.com
0 votes Thank Flag Link Fri Apr 13, 2012
Did you try Craig's listings for a Sub-lease? Regards,
0 votes Thank Flag Link Fri Apr 13, 2012
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