Do broker fees still exist in NYC?

The short-lived ban on broker’s fees is officially history. On Tuesday, the New York Department of State quietly walked back its bombshell guidance that aimed to block brokers from collecting a commission from tenants.

Do I have to pay a broker fee in NYC?

Many renters seeking to move in New York City have to pay up to 15 percent of an annual lease to brokers — regardless of whether they helped find the apartment. After a legal battle, the state affirmed this week that broker fees were legal.

Are brokers fees legal in NYC 2021?

State Supreme Court Judge Susan Kushner, in a ruling in April 2021, said the order prohibiting brokers from charging commission from tenants was illegitimate, null and void as the Tenant Protection Act of 2019 doesn’t explicitly mention broker’s commission.

Are there brokers fees in LA?

In Los Angeles, also one of the priciest rental markets in the nation, landlords pay the broker’s fee. But like New York and many other cities, renters likely have to put down a first- and last-month’s rent, security deposit and an application fee.

How do I avoid broker fees in NYC?

How can you avoid rental broker fees? In order to avoid broker fees, you need to avoid brokers (except Yoreevo!). The best way to do this is to look for landlords renting their own apartments or rental buildings which handle their listings internally.

Are NYC broker fees negotiable?

It is well known to all New Yorkers looking to rent an apartment in NYC that the standard rental broker fee in NYC is a one-time 15\% commission that is paid out of pocket to the rental broker for services rendered. Therefore like any general service that is provided, the NYC rental broker fee can be negotiable.

Can you negotiate brokers fees?

You can! No law sets real estate commission rates, so you are free to negotiate. If you offer a lower commission rate to your realtor, be aware that they may refuse and even back out as your listing agent. There are a few reasons real estate agents may be willing to accept lower fees, though.

How do I get around a broker fee?

Here are three ways to avoid paying unnecessary fees.

1. Use sites with no-fee listings. You can search for no-fee apartment listings on sites like RentHop, Loftey, Transparentcity, CityRealty, Naked Apartments, LeaseBreak and StreetEasy.
2. Look for ‘rent by owner’ listings.
3. Negotiate, negotiate, negotiate.

How do you avoid broker fees?

Here are three ways to do so:

1. Invest in exchange-traded funds (ETFs) rather than mutual funds. The expense ratios are almost always lower for an ETF versus a comparable mutual fund.
2. Avoid products with front-end loads, back-end loads or 12b-1 fees.
3. Seek out ETFs with no trading fees.

Who pays the broker fee in NYC?

In NYC and a small handful of other cities like Boston and Chicago, the renter is on the hook to pay the broker fee, not the landlord. It wasn’t always this way, though. The market has actually see-sawed back and forth from renters paying, to landlords paying, and then back to renters again.

Why hire a broker to find an apartment in NYC?

Because finding an apartment in NYC is so difficult, the services of a good agent are likely to save you a lot of time and frustration. Another piece that is often overlooked is that broker fees, in a sense, come out of the pockets of both sides. In most of the U.S., it may seem like renting an apartment is free because the landlord pays the agent.

How much does it cost to rent through a broker?

Broker fees will set you back anywhere between 1-2 months’ rent and are paid upfront when you sign your lease. So, to put this in context, you’ll be paying anywhere between 8\%-15\% of your annual rent, plus a security deposit, up front. Are broker fees negotiable?

Are broker fees a thing of the past in 2020?

For a brief moment, starting on February 4, 2020, broker’s fees became a thing of the past when a New York law banned them. Just a few days later, a judge temporarily blocked that ban, allowing real estate brokers to continue charging fees to renters. Let’s break down what broker fees and how to get around them.