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.

Hiring A Commercial Real Estate Broker For Leasing Office Space

It may seem like an arduous undertaking to consider renting office space for your business, especially if you have never done anything like it before. There are so many different listings available on the market, and they all very in leasing costs; all of this can be too much to handle.

Apart from the issue of considering all the available units, you must first figure out exactly what it is that your business needs, in terms of office space. All of this can be very overwhelming, as you attempt to find the best office space location for your business.

The thing to keep in mind is that you need not face all of these problems, as you try to find the most ideal location for your business. You can do this by seeking the professional help of a commercial real estate broker.

These commercial real estate brokers do their job just like real estate agents. The only difference is that brokers focus more on doing business with buyers of commercial space, as well as owners.

Commercial real estate brokers also work just like brokers, in that they serve to aid those that need help in locating the best office space for their business, given their budget range and conditions. These brokers are equipped with lengthy lists of owners of commercial space, and they are sure to help you discover at least two prospects that meet your requirements and budget range.

In doing business with a commercial real estate broker, keep in mind that you must be forthright about your budget range and conditions, and see to it that you enumerate everything that you want and need for your business’s office space. In doing this, you will be helping your broker help you locate the best units.

Request your broker for about three options, and ask him or her if he or she could set up a viewing schedule for these locations, and perhaps your broker can even arrange an appointment with the owners. Being able to see the units firsthand and talking about matters of concern with the owners should be able to guide you in singling out the best unit for your business.

As expected, it does not cost very little to afford the services of a commercial real estate broker. On the other hand, having the advice of a professional in these types of circumstances will be sure to alleviate you of stresses, as well as aid you in better transacting with owners.

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.