Do I Need a Rental Broker to Rent an Apartment in NYC?
Apartment hunting in New York city can be a daunting experience and even a traumatic one depending on how things play out. Of course, it can be even more difficult when you have to do it all by yourself. You should at least seriously consider getting a real estate agent (a broker) involved. You may be thinking “I don’t need a rental broker and I don’t want to deal with one!”
NOTE: To search for NYC apartments, go to frele.com (free service). Or, click for more rental tips
Brokers often get a bad rap for the wrong reasons (i.e. unfortunately there are some really bad apples out there that ruining it for everyone). Since renting an apartment can be more challenging than you may realize, you should first understand how a broker can help you.
Why You May Need a Rental Broker in NYC?
There are many advantages to hiring a good experienced real estate broker. Here are some things to think about when deciding whether you need a rental broker or not. We explain the “cost” hiring a broker towards the end.
1. Rental Brokers Have Expert Knowledge of the Industry/Market
A professional broker is an expert in real estate, and they have their finger on the pulse of the market. Brokers can give you a sense of what the market is doing. Is the current market more in the favor of landlords or tenants? Will the price be negotiable? Can we negotiate a better move in date? Will I get a better “deal” in a different neighborhood, and still meet most of my other objectives?
2. Rental Brokers Can Help You Make the Inevitable Tradeoffs You Have to Make When Renting in NYC
A good broker will be able to help you get an apartment that has most of the features you desire, while helping you make the necessary tradeoffs. This is why some feel they need a rental broker. For example, let’s say you’re looking for a two bedroom apartment in the East Village with private outdoor space and a washer /dryer in the unit. An experienced broker will let you know how much these criteria will limit your search (Hint: A lot!)
3. Brokers Know Where to Find “Listings”
Unfortunately – unlike the “sales” market – there is no ONE website to search for all rental listings. Since the biggest website out there starting charging fees to post (and saw the number of apartments on their website drop a whopping 50%) there is no longer just “ONE” website where you can go to see apartments.
Fortunately, most brokers have access to most rental listings in their own databases. Additionally, some brokerage firms have deep relationships with landlords going back decades. Landlords will often just send the listings out to a few “handpicked” brokerage firms they have been dealing with for a long time. While these brokers usually advertise them and you may be able to see them online, they could be on any number of different websites.
If it seems like the kind of apartment you are looking for just does not exist at all, you may need a rental broker to make sure you are uncovering all stones. An experienced broker knows where to look to make sure you bases covered so you don’t miss out on listings.
While there are some buildings for which a broker may take you or you can enter on your own and save a brokerage fee, there are just as many buildings (if not more) for which you have to work with a broker to see the unit. For example, most condos or coops (where individuals own the apartments) are exclusively represented by a particular broker.
So no matter how you look at it, you won’t be able to see all of the inventory if you refuse to pay a brokerage fee.
4. Good Brokers Can Save You A Lot of Time and Energy
Looking for an apartment can be very time-consuming and frustrating. If you simply don’t have hours and hours of time to spend per week on your search, then you likely need a rental broker.
A good broker will be able to do all the searching, setting up appointments, handling negotiations, helping you apply by gathering all of your documents (i.e. tax returns, etc.) and helping you understand the leases.
Having a reliable broker to handle all the aspects of getting an apartment frees up your time to do other things.
5. Brokers Can Help Navigate Unfamiliar Territory
Even the most seasoned apartment renters can be faced with unfamiliar and complex situations for which you may need a rental broker. Some things a broker can help with that you may not even be thinking about now are:
- understanding the lease contract
- negotiating the rental price
- presenting you in the best light to a prospective landlord.
For example, if you are asked to sign a lease contract using the A101 Blumberg lease, a good real estate agent who is representing your interests may suggest you cross out clauses #17 and #42. These clauses are often regarded as unfair to the tenant and 99% of the time even the landlord will agree with this if it is brought to the landlord’s attention. This is just an example of some of the invaluable insight a broker can bring to the table.
Brokers can also assist you with other concerns that are related to your move-in, including setting up utilities and hiring a storage and moving company. He or she can also help you discuss other issues with the landlord such as needed repairs or breaking your lease early.
The Cost to Hire a Broker
Your decision as to whether or not you need a rental broker will often come down to cost. Hiring a broker to find a NYC apartment will likely cost you money. Broker’s fees are about 15% of the annual rent on a 12-month lease but are often negotiable. There are also brokers who will charge a fee equivalent to a month’s rent (8.33% of the annual rent).The final fee depends on the unit itself (and the circumstances surrounding the unit), the agent, and the brokerage firm.
There are some instances where the landlord pays for the broker’s fees, especially in particular areas of NYC such as the Financial District. Here you will find most buildings will advertise apartments as “no fee” or with “OPs” (which stands for “owner pays”). For these buildings – and others in NYC as well which are advertised this way – you should not have to pay a brokerage fee because the landlord will be the broker. It is important to ask whether you or the landlord will be paying the broker’s fees. Sometimes a landlord will decide to pay the broker fee even if that was not the way the apartment was advertised, so it never hurts to ask.
NOTE: If you as a renter are being represented by a broker, you should remember that a different broker (i.e. a second broker) may also be representing the landlord. In this case, the fees may be higher since two brokers will be splitting it, but it usually won’t be twice as high as the two brokers will take less commission compared to a single broker handling the transaction.
Tip: Never assume – make sure to ask the broker right away about the fees involved.
A Good Rental Broker Adds Tremendous Value. Seek Referrals.
Every person who has lived in New York City knows that the real estate market is super-competitive as well as very expensive. While you can save money by doing the search yourself, you should consider whether you need a rental broker or not.
Unfortunately, any old broker won’t do. You should ask friends and family if they can refer a rental broker to you, or feel free to just email me and I connect you with a rental broker and make sure you are in good hands.
Alternatively, you can register with Frele. On our registration page we ask if you want to work with an agent and we can connect you with one in our network of brokers whom we partner with.
For more NYC rental tips, please go to frele.com/learn.
This article was written by:
Phil Horigan, NYC Real Estate Veteran
Founder, Frēlē, the free and honest NYC rental marketplace
Producer, Phil’s NYC Rental Tips [YouTube Channel]
Blogger: flowfreely.com
Instagram: @philiphorigan
Phil has been a licensed NYC real estate agent since 2004 working for some of the top real estate brokerage firms in the industry. He founded Leasebreak.com in 2013, and Frēlē in 2017. Frēlē and Leasebreak are free and transparent rental marketplaces to search for or post apartments for rent in NYC
Go to frele.com to search for NYC apartments (free service).