Rentals in New York>Question Details

a0960141106, Renter in New York, NY

about the 15% brokerage fee do I pay it all at the beginning or pay 15% monthly? what if I termination of contracts, do I get any refound ??

Asked by a0960141106, New York, NY Tue Feb 5, 2013

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Jenet Levy’s answer
The 15% brokerage fee for a rental apartment is paid at lease-signing. It is not paid out over time. It is the payment for brokerage services you have received to find and secure you that apt. If you terminate the lease later on, that does not negate the fact that someone did their job and got paid for it in getting you that apt. That fee, by the way, is split between the brokerage of the listing agent and the brokerage of your agent, and then the brokerages pay their agents.
1 vote Thank Flag Link Thu Feb 7, 2013
top brokers get 15% only once - at lease signing.... And trust me we work for it!!!
1 vote Thank Flag Link Tue Feb 12, 2013
Brian, there is no typical % rental fee as well you both know, all fees are negotiable. Obviously, the stated fee here is 15% of the annual rent. That is a one time payment at the closing table. You are locked into the lease agreement term of whatever you've negotiated (either for one or two years). Once that fee is paid, that is it. There will be no refunds if you choose to break your lease with your landlord, full stop.
0 votes Thank Flag Link Wed Feb 6, 2013
Hello, the broker fee in the amount of 15% of the annual rent is due in full at lease signing. You should ask the particular broker involved how they handle refunding the fee if for some reason your application falls through (assuming this is due to board rejection by a co-op or exercise of right of first refusal by a condo) but otherwise there would be no refunds (there would typically be no termination of the lease after you've moved in unless you have breached the terms and an eviction has happened. The only other scenerio I could think of where this could happen is if the premises are dmamged due to flood, fire, etc, and you cannot live there - in that case it falls to the landlord to provide for whatever is spelled out in the lease, its not a matter of broker involvement).
0 votes Thank Flag Link Wed Feb 6, 2013
Any broker fees are payable at the signing of the lease; generally there are no refunds, unless you have an agreement with the agent/broker owner. Review the lease regarding any termination details; generally the agreement is binding between you and your landlord for the specific period of time agreed upon.....
0 votes Thank Flag Link Wed Feb 6, 2013
Typically the 15% broker fee is paid upfront when you are signing the lease and providing the first month's rent and security deposit. That fee is generally split betwen the broker representing the owner and the broker representing you. If you are representing yourself, you can certainly try to ask the listing broker if they would consider reducing the fee to half. Some may reduce while others may not.

If you break your lease early, you would not been entitled to a rebate of the broker fee. Moreover, you may actually be responsible for the remainder of the lease payments even if you no longer live there unless your landlord is willing to let you out of your lease early.
0 votes Thank Flag Link Tue Feb 5, 2013
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