What Are No Fee Apartments And How To Find Them In NYC
Whether you’re new to NYC or have been living here for the past few years, finding apartments for rent in the financial district of NYC can be challenging and overwhelming. You may also come across real estate terms and phrases in apartment listings that need explanation. An example of this is the phrase “no fee apartment”.
What is a No Fee Apartment?
No fee renting apartments NYC listings that do not require tenants to pay the broker fee. A broker fee is a one-time fee that renters typically pay in exchange for getting a broker’s help with finding an apartment. In some cases, the landlord has volunteered to pay the broker’s fee.
A no fee apartment does not always mean that there is no broker fee – it only means that the renter is not the one who pays it.
Beware Of False Advertising
Unfortunately, many no fee apartment listings in NYC are a scam. Brokers use the phrase as a way to make money and attract new, inexperienced tenants. To get a truly no fee apartment unit in NYC, you need to eliminate the middle-man (real estate broker) and work directly with the landlord. That way you won’t have to pay the broker’s fee, and the owner – who also won’t have to pay the broker’s fee – will probably rent you the apartment at a fair price.
Ways to Find a No-Fee Apartment in NYC
Technology has revolutionized every domain of life, and shopping for real estate is no exception. Tenants in NYC can now find a no fee apartment using websites like NY Rent Own Sell, which gives you the option to search for fee and no fee apartments. NYC landlords are also putting more information about their rentals online, thus eliminating the need for a real estate broker.
Your social network may also help you find apartments in NYC. Let your Facebook friends and Twitter followers know that you are searching for a no fee apartment—they may be able to give you some good suggestions.
Don’t hesitate to hit the streets on your own to find out which apartments are no fee. Talk to doormen at rental buildings, management firms that deal directly with renters, and anyone else who might have knowledge of whether or not an apartment is a no fee building.
With that being said, finding a no fee apartment doesn’t always mean you are saving money. Landlords often include hidden charges and fees in your monthly rent. Not sure of whether your landlord has tricked you by rolling additional fees into your rent? Compare the rental rates for comparable apartment units in the area. If the rent is higher at your unit than others, there’s a good chance that your rent includes hidden fees.
Pro Tip: – No fee apartments are prevalent when the real estate market is slow, like during the pandemic or an economical downfall. They may also be more prevalent in buildings where apartments are harder to rent.
FAQs About No Fee Apartments
Can an apartment be both fee and non-fee at the same time?
The answer is a big YES. If the person who’s showing you the apartment is the owner, you might not need to pay the broker’s fee. On the other hand, if you have hired a professional agent to assist you with finding an apartment then you will need to pay the broker’s commission.
Why Landlords Advertise No Fee Apartments?
There might be many reasons why a landlord agrees to pay the broker’s fee. One reason the landlord may pay the fee is because the apartment building is new and the landlord is trying to fill vacant units quickly. Another reason they may pay the fee is because the rental market is in its off-season, which typically means demand for rental space is lower.
Are There Any Drawbacks Of No Fee Apartments?
It might be a red flag for prospective tenants when a landlord agrees to pay the broker’s fee. It’s possible there are problems with the apartment unit, the building, or the neighborhood. Furthermore, landlords know that no fee apartments attract renters and, as discussed earlier, they might use them to trick tenants by increasing the rent to compensate for the broker’s fee they’ve already paid upfront.
No-Fee vs. Fee – Which Should I Choose?
Just because the apartment doesn’t have a broker fee doesn’t mean that it is always better than one that does or vice versa. Real estate agents are a vital part of the NYC real estate market and they know the market. Having access to a licensed professional to help navigate apartment listings is a win-win situation.
You run the risk of dealing with unscrupulous brokers when looking at no fee apartments; some brokers use them in bait-and-switch schemes. Unless you meet a property owner with a sizable portfolio, it’s better to go for apartments that requires a tenant fee.
The Bottom Line
No fee apartments are highly sought after and are, therefore, hard to find. The key to finding a true no fee apartment is being as knowledgeable as you can about available apartments. If you know what brokers know – your ideal apartment’s location, the rent amount, and the landlord – you won’t need a broker to find an apartment at all.