15% Broker fee (real estate, apartments, rental)

[Gilmoregal]

Anyone else notice how most brokers are now asking for 15% of the annual rent? Seems like too much. especially when the average 1 bed is around 1,700-1,800 (RS) . The broker fee comes out to around 3k. And with first month plus security someone would need 7k to move in. Not including paying for movers.

Are people really paying almost 10k to move into a pre war rent stabilized apartment?

[BugsyPal]

Originally Posted by Gilmoregal

Anyone else notice how most brokers are now asking for 15% of the annual rent? Seems like too much. especially when the average 1 bed is around 1,700-1,800 (RS) . The broker fee comes out to around 3k. And with first month plus security someone would need 7k to move in. Not including paying for movers.

Are people really paying almost 10k to move into a pre war rent stabilized apartment?

Fifteen percent or sum equal to one month's rent has been standard broker fee for some time. Going back to 1990's or even before IIRC. Some charged less, others didn't at all due to arrangement with LL, but never the less that number or close is about right.

[Gilmoregal]

15% of the annual rent is not equivalent to one month rent. It’s way more.

I’m very familiar is 1 month rent as being the brokers fee. 15% is way too much

[BugsyPal]

Originally Posted by Gilmoregal

15% of the annual rent is not equivalent to one month rent. It’s way more.

I’m very familiar is 1 month rent as being the brokers fee. 15% is way too much

Perhaps should have phrased it another way; but reason why you're seeing straight 15% fee is just what you've said, it works out to be more than one months rent so a good thing for broker.

Some poor slob was recently hosed for $20k in broker's fee. That broker saw him coming...

https://nypost.com/2022/08/20/broker...nyc-apartment/

[Chava61]

Years ago, some brokers were asking for the equivalent of one month's rent while others for 15%. So the 15% isn't a new thing.

[jjbradleynyc]

When I was working in real estate and rented apartments in Williamsburg and Greenpoint from 2003 to 2008, 15% of the annual rent was standard.

Some brokers would do 18%!

And that was back then.

[Tiredofnyclife]

Originally Posted by jjbradleynyc

When I was working in real estate and rented apartments in Williamsburg and Greenpoint from 2003 to 2008, 15% of the annual rent was standard.

Some brokers would do 18%!

And that was back then.

You are all looking at this wrong. We should become brokers and make easy money according to the article.

[MKTwet]

There's no rule that says you must pay a broker fee. Simply decline and look for another place. A lot of apt that are broker represented are fake. They are nothing more than a broker that is relisting an apt that is already listed on Facebook and getting a cut through you but the actual listing somewhere else shows no broker fee.

[Cida]

Wasn't it always 15%?

[Mr.Retired]

Why get brokers involved? Cut the Middle Man Out.
If a tenant has a reputable rental history all it takes is a phone call between new and former landlord.