Rental Basics in New York>Question Details

Cas, Renter in New York, NY

what is the customary brokers fee for a rental apt in nys?

Asked by Cas, New York, NY Sun Aug 1, 2010

I am going to rent a co-op apt. for $1500 a month. The apt. was shown to me by a broker. The broker wants 15% commission. Is this a customary commission? Please advise.

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9
The customary rental fee in NYC is 15% of the first year's rent, paid by the renter.
2 votes Thank Flag Link Sun Aug 1, 2010
Regarding one responder's zealous legal caveat below, the question is what is customary. Cas wants to know if the broker's 15% fee on a rental is "customary" or out of the ordinary. The law you are referring to is about price-fixing. Custom vs. setting a monopoly by price fixing are different. To everyone else, I am talking about NYC, particularly Manhattan. The "customary" commission is generally 15% of the first year's rent. If the lease is short-term, it is less. It it is a particularly bad rental market, the owner may contribute to the commission, or may offer the tenant an incentive that they can use toward either the first month's rent or the agent(s)' fee. I want to also add that there is usually an additional credit check fee and, in the case of a co-op or condo sublet, a fee for the submission of a co-op board sublet application. At times the owner of the unit may cover that.
1 vote Thank Flag Link Sun Aug 8, 2010
Brokerage fees are negotiable like any commission. Brokerage fees generally range from 10-15% of the first year's rent. Generally, the tenant pays the fee, but some owners of condos will pay a portion of this, some rental buildings offer to pay 1 month's brokerage fee as an incentive. In general, the more rare & desirable a property is, the less the landlord is apt to negotiate the fees. The more inventory there is in a building, the more likely the landlord will offer incentives. Smart Landlords offer to pay at least a portion of the fee as an incentive...then the listing can show as "Reduced Fee", which generally secures a tenant quicker.

An experienced Broker will be able to steer you towards listings that offer incentives. YOU CAN USUALLY NEGOTIATE THE FEE.

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
In response to the below comment--Commission discussions are not to be held on a public forum--they can only be discussed in the confines of your office, or, between agent and client--check out the law and how it applies to professional agents ---regardless rental or sale there is no such thing as customary as commissions are in fact negotiable.
0 votes Thank Flag Link Sun Aug 8, 2010
Is the 15% commission based on the monthly rent or the yearly total rent? The is no one way to charge, many brokers charge different fees depending on their type of service. I'm sure you will know what is reasonable and what isn't.
Web Reference: http://www.KandHhomes.com
0 votes Thank Flag Link Sun Aug 8, 2010
Hello,

NYC the customary brokers fee is 15% of one year rent. Some times landlord will cover all or part of this fee.
0 votes Thank Flag Link Tue Aug 3, 2010
When a coop apartment is listed with a broker for sublet the broker's fee is either paid by the owner, the tenant or split between both. If two brokers are involved it is split between the two brokers. Sometimes the listing agent is paid by the owner and the tenant's agent is paid by tenant.

When the rental market is tight there usually is less negotiating room. Landlords and owners are more willing to offer concessions and or pay broker fee when there is a high vacancy rate. In a coop sub lease there are are also additional fees for processing/administrative etc. that rental buildings don't charge. The coop may also have a strict sub-let policy. Unless you're renting from the sponsor you may only be able to sublet for a maximum 2 years. Good Luck.
0 votes Thank Flag Link Sun Aug 1, 2010
Mitchell Hall, Real Estate Pro in New York, NY
MVP'08
Contact
That sounds like the correct amount typically charged in NYC, but in NYS it varies between areas. Upstate NY is usually paid by the landlord where on Long Island, it's usually paid by the tenant. Good luck.
0 votes Thank Flag Link Sun Aug 1, 2010
Commissions are always negotiable, there are no set standards, as it would be against Federal Law--Sherman Anti Trust Act.
0 votes Thank Flag Link Sun Aug 1, 2010
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