Quickly and Easily Find a No Fee Apartment

There are so many apartments in NYC that you can rent that it can take up to 40 hours a week to find the perfect one. Particularly if you would like to live in the posh upper east side. If you want to have any chance of renting a brownstone, walkup, or elevator apartment there, you will need to know a few tips before you start.

Not only is it very tough to find apartments in NY, but if you want to limit your search to no fee apartments in the upper east side, you’ll quickly find that you’re going to need a broker to find the deals for you. A broker is able to negotiate good rates and keep you informed when an apartment becomes immediately available. If you think that you’ll be able to snatch up the good apartments before someone else will, well, you may be in for a surprise.

The big issue with brokers, however, is the fact that they charge a minimum of 15% for their services. While this may get the job done, it defeats the purpose of searching for a no fee apartment.

Luckily, times are changing, and there are many landlords that are willing to pay the broker fee in order to get a renter into their building and paying rent. So how do you find those no fee apartments that you’re looking for in the upper east side that will pay for the broker fees? It’s simple – either ask the broker or use a listing service.

A broker who is worth their weight in salt will have a list of apartment buildings that will pay for the broker fees. However, this is going to severely limit the number of options you have available. If you use a listing service, you’ll have all of the available no fee apartments at your fingertips.

Atlanta Apartment Brokers

The real estate industry in Atlanta is very well organized and governed by several laws. Real estate brokers have an excellent presence in the industry. They provide invaluable service to buyers, sellers, tenants, and landlords. Brokers are the medium that brings these two disparate groups together. They charge a commission for their services. Brokers maintain a record of houses available in their area of operation and offer services like showing the property, evaluating it, arranging for contacts for mortgages and the like. People generally leave their details with real estate brokers and they contact you when property that suits your specifications comes up for sale/purchase/rental.

Real estate brokers in Atlanta are required by law to possess a license and to get it upgraded at regular intervals. To do this they have to pass an exam. This reassures a prospective buyer/seller/landlord/tenant that he/she is dealing with a qualified person who knows his job. As any kind of malpractice can result in their licenses being revoked it is highly unlikely that one will be cheated by a broker. When property is bought and sold it is the seller who pays the broker’s commission.

From the broker’s point of view positive feedback from people who have used his services can get him new clients. In addition to this if brokers take up membership with organizations like National Association of Realtors and Association of Real Estate License Law Officials and the like, it can go a long way in helping them further their career.

Real estate brokers can be easily contacted through their Web sites. A little time spent browsing through apartment Web sites on the Internet will bring you rewarding results. It will equip you with information regarding the various options open to you and it will lead you to the broker who can get you what you want.

The Differences Between Fee Apartments and No Fee Apartments

Fee vs. No Fee Explanation

For starters one must understand that the overwhelming majority of apartments that are available at any given time in Manhattan are FEE apartments. What this means is that if you use a broker to find your new apartment, the broker must be compensated for their work. They must charge their client a fee; this fee is normally 15% of one year’s rent (for a $2,500 apartment a 15% Fee would be $4,500). In most markets in the country, this fee does not exist, instead agents are paid by the apartment owner to find a qualified tenant; New York City is an anomaly in this sense.

Being a broker, I know that, yes, there are clients for whom it makes sense to pay a fee (due to time constraints, among other things), as well as agents who have worked diligently and responsibly for their clients and deserve a 15% fee. That being said, while working as a broker, I have often found apartments for my clients in 10 minuets for which they end up applying and renting. For this I am paid a 15% fee, totaling in the thousands of dollars. Is it fair to charge a client a rate of $3,000 an hour, if the end result is the client has a new apartment with which they are happy? That is for you to decide

There are two ways to go about avoiding paying a fee.

One way is for you, the potential tenant, to rent an apartment directly through an owner. The other is if an owner offers brokers an OP (owner payment) for an apartment, thereby compensating the broker so they do not need to charge the tenant.

An OP is normally equal to one months rent, or 8.33 % of a year’s rent. Again, the reason an OP can mean no fee to the tenant is because the broker is being compensated for their work by the owner, not by you.

The owner offering an OP to the broker allows the broker to advertise the apartment as “No Fee” but in reality the tenant doesn’t necessarily get a better deal. The owner, losing a month of rent to the broker will increase the rent during the other months to compensate this loss.

To explain this better I will use 2 apartments for rent as an example. Apartment A and apartment B are in the same building with the same size, same view, same amenities. The difference, apartment A is being advertised as a no fee apartment for $2,000 because the owner is paying an OP. While apartment B is being advertised as a fee apartment for $1,835. Over a 12 month lease both apartments will cost you $22,000 – no matter which you choose once factoring in the fee you have to pay a broker on apartment B.

With that said, the general public will be more interested in Apartment A because they do not have to pay the fee themselves.