How much do realtors earn from rentals? (real estate, apartment)

[Augie1]

How much do realtors earn from rentals? A real estate broker friend of mine in NY earned one month's rent as a finder's fee. Until he sold a house, he earned his weekly cash flow from rentals.

So, the client has to have one month's security, the first month's rent, and the equivalent of one month's to pay the realtor as a finder's fee? Is this an industry standard? Could it be more? Less? How does this work in NJ?

[Kevin1975]

Most often the tenant pays the broker's fee. Its equal to 1 month's rent. That fee is split between the landlord's agent and the tenant's agent. The agents' brokers also get a piece of that. So its split 4 ways, unless the agent is representing both the tenant and landlord (dual agency).

[Augie1]

Originally Posted by Kevin1975

Most often the tenant pays the broker's fee. Its equal to 1 month's rent. That fee is split between the landlord's agent and the tenant's agent. The agents' brokers also get a piece of that. So its split 4 ways, unless the agent is representing both the tenant and landlord (dual agency).

Awesome! Thanks for the information.

[Kevin1975]

Welcome!

[lammius]

One month's rent for the broker fee is typical in JC. Though 1.5 months' security is more common than 1.0 month, IMO. So for a $2000/month apartment you'll need to lay out $6500 to get the keys. That doesn't count any move-in fees/deposits the building may charge.

In Manhattan, brokers' fees are usually 10-15% of the annual rent.