If you ever searched for an apartment to rent in New York City, you likely came across properties that were listed as “no-fee apartments”. But what does not paying a fee really mean for you and your future apartment? We’re breaking it down so you can go into your search feeling confident and informed.
Leave the Search to the Experts by Paying a Fee
Consider this: In a city where most people pay for grocery delivery, spending hours looking for an apartment in Manhattan is not in the cards for everyone. That’s why many people opt to pay a fee and avoid the frustrating elements of NYC real estate.
A fee apartment requires the renter to pay the broker directly for his or her time and resources. This usually ranges from 10-15% of the annual rent. By paying this fee, you are getting an industry expert at your fingertips to find options that match the criteria you provide.
Going for the No-Fee Option
No-fee apartments can mean that either the broker’s fee is paid for by someone else, or you found the apartment on your own without the help of a real estate agent.
When an apartment is advertised as no-fee where the landlord or management company pays the broker’s fee, it is usually located in a luxury or semi-luxury building with amenities galore. Furthermore, although the apartment is technically no-fee, the money you would have spent may be filtered into a higher monthly rent.
The Verdict: No-Fee May Still be Costly
Opting to pay a broker’s fee can save you time, energy and even dollars in the long run since you will have an expert agent who has relationships with landlords narrowing down your search based on your needs. This means that the likelihood of finding an NYC home that you love is high, while the stress of finding it is low.
Still on the fence? Overall, it is best not to limit your search and explore both fee and no-fee options. Just do your research to ensure you are making the best choice for you!