Co-brokerage commission rate - NYC rental

Asked by Jay, New York, NY Tue Apr 16, 2013

Where a renter is represented by a broker, what role does the landlord's broker have in establishing the percentage fee paid by the renter? Can the landlord's broker exert any influence (ethically) on setting the fee? Thanks.

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7
Ariel Dagan, Agent, New York, NY
Fri Jun 28, 2013
There is no standard commission for brokers - that would be illegal. However, there is a range that is typically charged. The web reference below shows you "how to negotiate the broker fee" on a NYC rental. These are suggestions and break down how fees are structured.
1 vote
Jenet Levy, Agent, New York, NY
Wed Apr 17, 2013
Jay,
The co-broker percentage is set by the agent of the landlord. It is split between the brokerage of the landlord's agent and the brokerage of the renter's agent. Then the brokerages pay their agents. There is no "standard" fee, as this would be called "price fixing" and is illegal. As far as the landlord's broker "exerting influence" on setting the fee, please bear in mind that this is their livelihood, and as described, it is actually split four ways - 2 companies and 2 agents.
1 vote
Anna M Brocco, Agent, Williston Park, NY
Wed Apr 17, 2013
Commissions are always negotiable, when two agents are involved in the transaction the fee is shared; for any necessary clarifications, consult with your agent....
1 vote
Elena Ravich,…, Agent, New York City, NY
Mon Jul 8, 2013
it is between client and a broker to agree on the fee. When co-broke, the listing agent sets up a split with another agent and it should be state in the listing.
0 votes
Christopher…, Agent, Tarrytown, NY
Wed Apr 17, 2013
I always get my fee from the tenant and fully disclose this to them up front. It can be a mutually agreed upon number between agent and tenant. The percentage will vary from agent to agent.

Chris
0 votes
Joseph Hasti…, Agent, Bayside, NY
Tue Apr 16, 2013
Hi Jay. To be clear, there is no such thing as a standard fee. All fees are negotiable, full stop. You might not be able to budge a broker on their fee as the vancancy rate is extremely low, but you can certainly try. Some Landlords might offer to pay a brokers fee to make it easier to rent their property with this simple concession. Many (most) do not.
If I have a listing of a fantastic rental unit, I might want a larger percentage, especially if the possibility of co-brokerage is high. There is nothing unethical about setting your fee as long as all involved parties have informed consent.
0 votes
Michelle Wei…, Agent, New York, NY
Tue Apr 16, 2013
In NYC we co-broke 50/50 between the tenant's agent and the listing agent.The standard fee in NYC is 15% of the first year's rent, the agreement on that fee is between the tenant & their broker not the the tenant & listing agent (unless the agent is representing both parties - which is called 'dual agency' and must be disclosed and agreed to by both parties in writing within the agency disclosure), but some apartments are listed for other amounts than the standard, so the tenant's agent should let the potential lessee know if that is the case - before showing the apartment to them so there is no misunderstanding.
0 votes
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