Broker fees are one of the most controversial costs of renting in NYC. While some cities have banned them entirely, New York renters often pay thousands of dollars to brokers just to rent an apartment. Here's what you need to know about how they work, recent legal changes, and how to find no-fee apartments.
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($2,500/mo apartment)
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What Is a Broker Fee?
A broker fee is a commission paid to a real estate broker for helping you find and secure an apartment. In NYC, this fee is typically paid by the renter, not the landlord—unlike most other cities where landlords pay brokers.
The standard broker fee is:
- 15% of one year's rent — Most common
- One month's rent — Sometimes negotiable
- 12-15% of annual rent — Typical range
The Real Cost
For a $3,000/month apartment with a 15% broker fee, you'd pay $5,400 just for the broker. Add first month's rent ($3,000) and security deposit ($3,000), and you're paying $11,400 upfront just to move in.
Recent Law Changes (FARE Act)
In late 2024, NYC passed the Fairness in Apartment Rental Expenses (FARE) Act, which would have required whoever hires a broker (usually the landlord) to pay the fee. However, the law's implementation has been challenged and delayed.
Current Status (December 2024)
- •The FARE Act passed but faces legal challenges
- •Implementation has been delayed pending court decisions
- •For now, renters still typically pay broker fees
- •Check current news for the latest updates
How to Find No-Fee Apartments
No-fee apartments exist—you just have to know where to look. Here are your best options:
Large Management Companies
Big landlords like Related, Equity Residential, and AvalonBay typically don't charge broker fees. They have their own leasing offices.
Filter for No-Fee on Listing Sites
StreetEasy, Apartments.com, and Zillow all let you filter for "no fee" apartments. Use this filter religiously.
Direct from Owner
Walk around neighborhoods you like and look for "For Rent" signs with phone numbers. Landlords renting directly don't charge broker fees.
New Developments
Newly constructed buildings often offer no-fee rentals and move-in incentives to fill units quickly.
Can You Negotiate Broker Fees?
Sometimes. Here's when you have leverage:
- Slow season (winter) — Fewer people looking = more negotiating power
- Apartment has been listed for a while — Landlord is eager to fill it
- You're a strong applicant — High income, great credit, stable job
- Multiple apartments available — Competition among brokers
You probably won't be able to negotiate if:
- It's peak season (summer)
- The apartment is in high demand
- You're competing with other applicants
Negotiation Tips
- 1.Ask if the fee is negotiable (don't assume it isn't)
- 2.Offer to sign a longer lease (2 years) in exchange for reduced fee
- 3.Ask if the landlord will pay part of the fee
- 4.Be ready to walk away if the math doesn't work
When Do You Pay the Broker Fee?
Broker fees are typically due at lease signing, along with:
- First month's rent
- Security deposit (max 1 month in NYC)
- Application fee (if any, usually $20 max)
This means you need to have all this cash available before you can move in. For a $3,000 apartment with a 15% broker fee, that's over $11,000 due at once.
Is Using a Broker Worth It?
It depends on your situation:
When Brokers Help
- • You're relocating from out of town
- • You have very limited time to search
- • You need access to exclusive listings
- • You're unfamiliar with NYC neighborhoods
- • The apartment is otherwise perfect
When to Avoid Brokers
- • You have time to search on your own
- • You know what neighborhoods you want
- • Cash is tight (that $5K is better saved)
- • You can find the same listings online
- • No-fee options are available in your area
Total Move-In Costs Calculator
What You'll Pay to Move In
* For a $3,000/mo apartment: With broker = ~$11,400. No-fee = ~$6,000.
Protect Yourself
- Get everything in writing — Fee amount, what services are included
- Never pay before seeing the apartment — Common scam
- Verify the broker is licensed — Check with NY Dept of State
- Don't pay cash — Use check or bank transfer for records
- Get a receipt — Document everything