What is the No Fee Apartment?

No Fee Apartments

Why will I need to pay the fee to find the apartment? It is one of most common questions that we hear from the people who have never lived in any city where the broker fees are the commonplace. Information below can explain fee and no fee apartments, and why not all the no fee apartments are made equal, how can you get best deal on the rental apartments in metro area.

What is the Broker Fee or How Much It Is?

One of most common lures that are used in real estate lists, one you can see in each kind of media, is a promise of the no fee apartments. And in these cases, that just means you do not need to pay the broker’s fee to sign the lease. Practice of using the broker for finding the rental apartment isn’t very common in this business, thus it is not surprising in case, you have never heard about it. And this market is an only place where it is usual for a tenant (and not landlord) paying for broker’s services while you sign the lease. Brokers generally charge 8.5% – 17% of annual rent on the apartment at a time of lease signing, thus finding the no fee apartment will potentially save you plenty of dollars. The broker fees generally tend to be much higher than in outer boroughs. The “inexpensive” $1500 apartment generally has the fee of $2700 that tenant should pay to broker! The no fee apartment lists are great, obviously, being careful: term will mean 2 different things.

Watch for Any Hidden Costs with “No Fee” Apartment

That sounds counter intuitive, however many of no fee apartments you see advertised on internet or in newspaper are obtained through the broker. Does it mean these brokers, or brokerage firm, with its overhead, have determined to work free, out of a few altruistic urge to help the stressed out apartment hunters? No, obviously not. The real estate brokers charge the fee for services that generally consists of finding and alerting you to or showing you the apartments, and helping you with the paperwork as well as acting as the liaison between you & apartment’s owner. That is how they actually stay in the business, by charging the fee for services. This is fair, since you cannot expect them work for free.

The brokers can as well give the “no fee” apartments, however that means the building’s owner is to pay the fee and not you. In case, owner is paying a fee, the owner often adds these fees into the rental costs, and give less concessions. Often, you may get the better deal on “no fee” apartment while you talk to owner straight, than while you go through the broker. Money the owner isn’t paying to broker for “no fee” apartment can in place get applied to extra month of the free rent, and reduced rent to you. Always make sure to ask in case they manage the property and have exclusive rights of leasing it.