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Djterrazas, Renter in Farmingdale, NY

When rental properties are listed in NY through a realtor, is the tenant obligated to pay a brokers fee when renting the property?

Asked by Djterrazas, Farmingdale, NY Tue Jul 27, 2010

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John and Loretta,

I think its insane that tenants are responsible for paying the commission. I wish this section of North Jersey would change its "unwritten" policy of who pays the commission. I've persuaded a few landlords to pay the commission, some being my listings and some were where I represented the buyer. Even if they pay half, its helpful.

I make the two piles too (lol). We normally see the ones where landlord pays and then if we don't find anything, we will look at the others. Again, the tenants are fully aware that these type of listings they would be responsible for paying but I do everything I can on behalf of my clients to negotiate who pays the commission. Seriously on one house rental the rent was on the high end, once you added up all the money the tenant had to pay out for the rental, they ended up having enough money to buy a lower priced home FHA.

- Gina
1 vote Thank Flag Link Thu Jul 29, 2010
In NJ where I am, the landlord pays. We skip by those that say tenant pays,which are less than 2%. The renant already pays a month and a half security and 1st months rent up front, not to mention moving costs. Not right that landlords also ask for that from them.
1 vote Thank Flag Link Tue Jul 27, 2010
Good to know Gina!

Then o.k.. about from Edison down.. it is most common for the landlord to pay the commission.
I only take rental listings where the landlord pays the commission.

We do have a few here that they as the tenant to pay the commission, but again, I make two piles.. one the landlord pays te commission, two the tenant pays commission. We usually throw out the ones where the tenant pays and show the landlord pays pile!
1 vote Thank Flag Link Tue Jul 27, 2010

I recommend you reposting your question in New York so perhaps more agents in New York can let you what is customary there.

Contrary to what John states, in North Jersey, where I am, approximately 99% of the time the tenant is responsible for paying the commission not the landlord. Once in a blue moon you will find a landlord willing to pay it or at least pay 1/2 of it. I show both types (landlord/tenant paying) but I do fully explain in detail to tenants that they are responsible for paying the commission on those type of listed properties. They usually opt to see the ones first where the landlord pays them and I agree that's the wise thing to do. It's costly for a renter to have to pay one month's rent; one and one-half month security deposit and broker fee (where I am its equal to one month's rent) so you are in essence back 3 and 1/2 months rent upfront.

If using an agent to find a rental, make sure you fully are explained and understand what you are paying for.

Good luck.

Gina Chirico, Sales Associate
Lattimer Realty
973-715-1158 cell
973-575-6353 ext 17 office
1 vote Thank Flag Link Tue Jul 27, 2010
It depends on the policy of the office. I know that in NY it is common for the renter to pay the commission,

In NJ.. it is usually the obligation of the landlord to pay the commission. -or- actually, it works both ways.. but I only show the rentals where the landlord pays the commission.
1 vote Thank Flag Link Tue Jul 27, 2010
In NY, we pick and choose who pays what... but in most cases if you are heading out to get a rental listing, and tell the landlord that he or she will be the one obligated to pay the fee, they will just go hire another agent.... for free.

The ONLY time I really see the landlord pay the fee is on higher end summer/seasonal rentals.
0 votes Thank Flag Link Mon Jul 8, 2013
Yes, in NY the tenant pays the broker fees--very few, if any landlords offer to pay the agent's fees. If two brokers are invoved in the rental, the commission is shared.
0 votes Thank Flag Link Tue Jul 27, 2010
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