{"id":6630,"date":"2017-08-07T13:21:24","date_gmt":"2017-08-07T17:21:24","guid":{"rendered":"https:\/\/www.renthop.com\/content-manager\/?p=6630"},"modified":"2023-07-24T13:25:29","modified_gmt":"2023-07-24T17:25:29","slug":"brokers-fee-an-investment-or-just-another-expense","status":"publish","type":"post","link":"https:\/\/www.renthop.com\/blog\/brokers-fee-an-investment-or-just-another-expense\/","title":{"rendered":"Broker Fee \u2013 An Investment or Just Another Expense?"},"content":{"rendered":"
When it comes to seeking out your next New York City apartment<\/a>, the search can often be incredibly overwhelming. There are a ton of considerations to make and a ton of properties you could potentially look at. Every property has a different price, different amenities<\/a>, and is located in a different neighborhood. With most of us working and having a variety of other passions, apartment hunting can be daunting, and many of us don\u2019t have the time. This is where hiring a broker and paying their broker fee may come in handy.\u00a0<\/span><\/p>\n <\/p>\n Hiring a broker or agent<\/a> can be an excellent way to find your next apartment. Agents are lifesavers when it comes to taking the burden off of you. They can make you a more attractive tenant by guiding you through the application process<\/a>. In fact, some landlords and companies in the major cities might not even be willing to speak with you unless you are working with a broker.<\/span><\/p>\n A broker is someone who arranges a transaction between the buyer and the seller. They will work with you and the landlords of apartments to come to a rental agreement. They are great for when you don\u2019t want to do all the research yourself, or for when you want a broader pool of potential properties to look at.<\/span><\/p>\n In addition to that, brokers can also actually save you money. While they will cost you a bit of money as there’s usually (but not always) a broker fee<\/a>, think of this as an investment. The broker fee is an agreed-upon amount that the renter directly pays the broker at the end of the transaction. Typically, the fee ranges from one month’s rent to 15% of the yearly rent, and renters can negotiate this amount.<\/span><\/p>\n The broker fee is worthy paying if you’re looking for a seasoned professional to guide your process. These agents can find rentals at a lower price than you could on your own, which means they often basically pay for themselves. They can also help score you an apartment you never thought you\u2019d ever be able to get, and that seems like a pretty worthy investment. <\/span><\/p>\n Brokers can also guide you through all the required paperwork.<\/a> This is a huge advantage for most renters. All in all, you are paying a broker for their experience and knowledge when it comes to real estate and renting, as well as the fact that they will be right beside you throughout the whole process. <\/span><\/p>\n So now you know what a broker can offer you, how do you know which broker to go with? In the major cities, there can be hundreds (if not thousands) of different individuals or companies you could go with. However, not all brokers are created equally. Some will be much better suited at finding you a great apartment than others will be, so you want to do your research before selecting a broker..<\/span><\/p>\n There are a few things you should look for in a broker. First of all, you want to ensure they are licensed, of course. And instead of just googling the word broker followed by your city and clicking the first option, do some research on which have a good track record and good reviews among those in your community. Also, the fees can vary from broker to broker as there are no laws or rules that determine what they can charge. Of course, the fees will depend on things such as which broker you go with and where you are looking to rent. <\/span><\/p>\n The fees are often either one month\u2019s rent or a percentage of your annual rent. Of course, the fee should be decided before you start your search, and make sure you have it in writing. In fact, you should have everything in writing when it comes to dealing with a broker. Make sure both they and you know when and how they will be getting paid.<\/span><\/p>\n Renters can still find an apartment without a broker This leads many people to believe that having a broker is an unnecessary or is nothing but a waste of money. However, it is still beneficial to have one if you want some help or specialized expertise. <\/span><\/p>\n If you like the idea of a broker, but merely can\u2019t wrap your head around paying for one, we have some good news for you. There is also the option to use a broker that doesn\u2019t offer a broker’s fee. Well, not exactly. The broker is still paid, but it\u2019s just not you who is paying them. In this case, the landlord will often pay the broker’s fee. The landlord may want to rent the unit quickly, or not want to directly lower the rent in a volatile market. In this case, they pay the broker fee to create an appealing concession<\/a> for tenants.\u00a0<\/span><\/p>\n If you have never used a broker when looking for a new apartment, it is something worth looking into. They could help you find the perfect property in the perfect location. If the broker completes their duties, the broker fee can be a worthwhile expense. The money is well spent if they help you get an apartment that you otherwise could not get on your own.\u00a0<\/span><\/p>\n Editor’s Note: We updated this article to enhance readability. Readers in 2024 and 2025 should also review the FARE act to understand how broker fees work in the current market.\u00a0<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" When it comes to seeking out your next New York City apartment, the search can often be incredibly overwhelming. There are a ton of considerations to make and a ton of properties you could potentially look at. Every property has a different price, different amenities, and is located in a different neighborhood. With most of […]<\/p>\n","protected":false},"author":3,"featured_media":6631,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"yes","_lmt_disable":"no","footnotes":""},"categories":[269],"tags":[],"class_list":{"0":"post-6630","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-brokers-and-landlords"},"yoast_head":"\nWho is a Broker?<\/h2>\n
Saving Money with a Broker Fee<\/h3>\n
\n
How to Choose a Broker<\/h2>\n
Searching Without a Broker Fee<\/h2>\n
Conclusion<\/h2>\n