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Pardon ignorance... non-American here! Moving to NYC soon. (Am I what you all refer to as a 'transplant?)
I have a few questions on brokers / renting accommodation:
Is a broker the same as an agent? (What we would call an "estate agent" in the UK?)
And what is their fee based on? Is it a percentage of the annual rent of a property? Say the fee is 15% and the monthly rent is $1000, will their fee be 15% of $12,000? Is this payable when the deal is done?
Another question on renting, while I'm at it: if a lease requires security deposits, is this given as a check which does not get cashed?
And last question: given that I am a transplant (I think?), what are your thoughts on using a broker? All I know of property rental in NY (or the USA, for that matter) is what I've read on forums like this - in other words, I am inexperienced. Is it a recommended option to go through an agent, for the first time, at least?
I try to avoid brokers because of the fee but there are areas that will require a broker. If you are looking in Manhattan chances are you will need to seek a broker. There isn't many places available and most are sourced to brokers. Usually the fee is one months rent. When I have been looking in Forest Hills/Rego Park/Kew Gardens area there are plenty of broker fee apartments.
You pay the brokers fee, the first month rent (usually) and security deposit before you are allowed into the apartment. All the funds must be available and usually they will ask for a Cashiers Check (Official Check, Bank Check, whatever you want to call it). They certainly will cash it and usually hold it in an account until you leave. Once they have taken a look at the place, they will return the funds as long as everything is in good shape.
So really, find an area where you want to live, then check the rents in the area. You can still get deals with owners rather then brokers and some are offering no fee meaning it's a broker, but they won't charge a fee for the services. Essentially they are just there to advertise and show the property so the owner doesn't have to deal with it.
Large buildings you can find the building managers and lease through them. Otherwise can be a challenge especially if you don't already live here.
Security deposits are cashed.
Fee is indeed 15% of annual rent. It's stiff and if you can, try to avoid it, but the market here is hot - grab something if you like it quickly. Prepare yourself by having 1st month rent, last month rent, another month for a security deposit, and broker fee if needed ready to go. Saying "give me a day or two" to get things together will place you at a disadvantage.
Large buildings you can find the building managers and lease through them. Otherwise can be a challenge especially if you don't already live here.
Security deposits are cashed.
Fee is indeed 15% of annual rent. It's stiff and if you can, try to avoid it, but the market here is hot - grab something if you like it quickly. Prepare yourself by having 1st month rent, last month rent, another month for a security deposit, and broker fee if needed ready to go. Saying "give me a day or two" to get things together will place you at a disadvantage.
Agreed, have all the money ready and also another thing, all your paperwork. Have bank statements, reference letters signed, income verifications, documentation. EVERYTHING. They want sooooo much info when signing for a place so you have to be prepared or else you are left scrambling and could possibly lose the place that took you awhile to find.
I'm going to be going through this process soon, and people say you need to pay the brokers fee and security deposit and all that through a cashiers check, but need to do that right away and not wait. How do you expect to do that if you don't know what apartment you're going to get?
I'll most likely be apartment hunting in a weekend coming up, and won't be able to get the checks because it'll be a saturday or sunday.
I'm going to be going through this process soon, and people say you need to pay the brokers fee and security deposit and all that through a cashiers check, but need to do that right away and not wait. How do you expect to do that if you don't know what apartment you're going to get?
I'll most likely be apartment hunting in a weekend coming up, and won't be able to get the checks because it'll be a saturday or sunday.
I've always used a personal check and haven't had an issue. I also bring a copy of my credit score from myfico.com, which is in the 780's, so maybe that makes them feel better about taking a personal check? Beats me.
You've had good answers so far, but I'll add one or two things.
In NYC, people rarely begin by using a particular broker. They begin by looking at apartment listings which may or may not lead to a broker. A broker may nor may not require a fee (or, more accurately, perhaps you will have to pay a fee, but a "no-fee" apartment through a broker means that the landlord is paying a fee.
As a transplant, the really crucial element, in my opinion, is not whether or not you use a broker, but whether you're assertive about asking questions. Unless you're getting an expensive apartment, you probably won't get everything you want, so you have to decide what is important to you (quiet? big kitchen? full-time doormen?). There are a lot of complications, and foremost among them are the type of rental (rent-stablized? condo sublet from owner?). So every time someone mentions something you're not clear about, ask what it means. And the next time, ask again. Keep asking until you feel like you really know what's going on.
I'm going to be going through this process soon, and people say you need to pay the brokers fee and security deposit and all that through a cashiers check, but need to do that right away and not wait. How do you expect to do that if you don't know what apartment you're going to get?
I'll most likely be apartment hunting in a weekend coming up, and won't be able to get the checks because it'll be a saturday or sunday.
Broker commission and deposits checks are to be delivered during the signing of the lease, not before. IF a broker asks you to cough up the commission check before you're approved for the apartment and ready to sign the lease be VERY suspicious.
Pardon ignorance... non-American here! Moving to NYC soon. (Am I what you all refer to as a 'transplant?)
I have a few questions on brokers / renting accommodation:
Is a broker the same as an agent? (What we would call an "estate agent" in the UK?)
And what is their fee based on? Is it a percentage of the annual rent of a property? Say the fee is 15% and the monthly rent is $1000, will their fee be 15% of $12,000? Is this payable when the deal is done?
Another question on renting, while I'm at it: if a lease requires security deposits, is this given as a check which does not get cashed?
And last question: given that I am a transplant (I think?), what are your thoughts on using a broker? All I know of property rental in NY (or the USA, for that matter) is what I've read on forums like this - in other words, I am inexperienced. Is it a recommended option to go through an agent, for the first time, at least?
Thanks
Yes a broker is the same thing as an agent.
Usually the deposit/commission checks are exchanged when you sign the lease.
When it comes to rentals, you don't necessarily need the help of a broker but they can come in handy depending on the situation.
I would only use the assistance of a broker for finding an apartment in the following situations:
1) If you need an apartment FAST. Brokers are the first to get news of good apartments when the become available in Manhattan. It is not uncommon for apartments to be rented by a broker's client before the landlord even has a chance to advertise it to the public.
2) If you're too busy to search for apartments on your own and need someone to do that for you.
3) If you are looking to settle down in an apartment for 3 years or more, it doesn't make financial sense to pay a broker every time you need an apartment if you're going to relocate frequently.
4) If you're intent on finding a rent-stabilized apartment and want to get the jump on it before anyone else does.
You don't have to use a broker to find an apartment if you're willing to hunt down management companies/landlords and contact them about vacancies yourself. But that's a LOT of work.
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