Rent Hop receives very frequent, often daily, updates on the latest apartment availabilities and prices from our landlords. We’ve noticed an increase of what many lay-renters call “No Fee” apartments, even by landlords who would usually charge a fee.
What is No Fee Apartment?
A no fee apartment is OP, or “Owner Pays”, meaning the landlord pays the broker fee on behalf of the renter. This encourages full service brokers everywhere to show the apartment to all of their perspective clients, allowing the broker to advertise the apartment as a “No Fee” listing. The renter receives the broker’s full services without a broker fee!
Most importantly, renters appreciate a no fee apartment because it saves them money. In New York City, renters can pay up to 15% of the yearly rent for a broker fee, which reaches several thousand dollars. As more apartments become no fee, renters have more opportunities to save their money for rent.
Why doesn’t a landlord simply lower the rent by 15%? Usually, the landlords need the brokers. Landlords understand that their internal leasing team and company website simply don’t bring in the breadth of renters needed to fill their vacancies. Landlords need the brokers who cater to renters from the entire spectrum of apartment hunters to find just the perfect match for any listing. Therefore, paying the broker an OP will be more successful in signing a lease than dropping the price 8-15%.
Editor’s Note: This article has been updated for readability. The original meaning of the content has not changed.
