Remember that you don`t need a realtor to rent an apartment in NYC. With that said, most offers have a landlord agent who still charges you a brokerage fee, even if you don`t have your own tenant agent to help them find. Then, that evening, he learned that New York State regulators had decided this week that tenants could no longer be charged brokerage fees, leaving the question of his payment uncertain, which he has not yet made. Jed Wilder, a real estate agent at Compass, said that if real estate agents charge a landlord and not the tenant – an unusual arrangement in New York – the fee is usually no more than a month`s rent. Tenants generally pay more, between 10 and 15 per cent of the annual rent. So where`s the tenant? For now, you are still on the hook for brokerage fees (often 15 percent of the annual rent), even if the broker works for the owner and your only relationship with it is your desire to see the apartment you found on the Internet. In this situation, the landlord will try to renegotiate the rental agency fees, although the tenant is the one who will eventually pay the bill. From a tenant`s perspective, rental brokerage fees are less negotiable. A: The real estate sector has been in crisis mode since February 4th over brokerage fees for rents, when state regulators, based on their reading of new rent laws, passed in June last year, issued guidelines that effectively ended the fees paid by brokers. But a week later, after real estate industry executives filed a lawsuit, a New York state judge filed a restraining order that ended the new guidelines. The injunction will be upheld until at least mid-March, when the judge hears arguments.
But March will be far from the end. And then there is a third variant where the fees can be divided between the landlord and the tenant. Beware of unethical brokers who try to collect the full fee of both parties. The reason NYC tenants generally pay brokerage fees is due to the dynamics of market demand. Simply put, the inventory limited to NEWC and the unlimited demand from tenants lets New York City landlords get away with charging tenants for rental fees. The usual brokerage fee at NEWC is either one month`s rent or 15% of the annual rent. Rental fees vary depending on the listing in NYC depending on the commission contract negotiated between the owner and the owner. While the real estate industry and the state government are fighting over the ban on brokerage fees, potential tenants are wondering what to do. Tenants would avoid paying large, one-time brokerage fees, but over time they could pay more in the end: instead of paying only if they move in, tenants could face higher rent payments, with brokerage fees also being set up when a tenant renews a tenancy agreement. Q: I`m so puzzled about these new rules that prohibit brokerage fees for tenants now that the rules are frozen. I found an offer on StreetEasy for a $1,850-a-month apartment in Queens.