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Alternatives to No-Fee Apartment Rentals in NYC

by | Mar 3, 2016

At first, you were set on renting a no-fee apartment. You equipped yourself with the necessary tools to tackle the no-fee apartment search. You even hit the pavement, using personal connections and approaching building managements. Yet nothing’s worked. And after reading even more into the pros and cons of no-fee renting in New York City, you’ve been dissuaded. But what are different rental options in New York?

First, we’ll introduce you to two types of rental apartments unique to New York City rent regulation. Then we’ll give a quick overview of how conventional, agent brokered renting plays out in the city.

Rent Controlled Apartmentsheader

In a word, rent-controlled apartments boil down to nepotism. A much older form of rent regulation, rent control generally only applies to apartments in buildings built before 1947. In order to qualify for rent control, a tenant must have continuously lived in an apartment since July 1, 1971. This means that the same family must have lived in that same unit since 1971. And these units can only be passed down through family with the condition that the new tenant lived in the unit for two years prior to the death of the former lease holder. So chances are you will have a harder time finding one of these than a credible no-fee listing. Once a rent-controlled unit is vacated, it becomes a rent-stabilized unit, which leads us to our next section.

Rent Stabilized Apartments

Rent-stabilized apartments in New York City appear in buildings that check these boxes: built before 1974, has more than 6 units, and is neither a co-op or condominium. Further, rent stabilized apartments can be in buildings with units that are not rent-stabilized. Once a unit is rent-stabilized, tenants are guaranteed the right to renew their leases. Rent-stabilized units must be under $2,000/month if the renter occupied the unit between 1993 and June, 2011, or under $2,500/month if the renter occupied the unit after June, 2011. As such, rent-stabilized apartments are generally a lot cheaper than most market-rate apartments because New York’s Rent Guidelines Board sets limits on how much landlords can increase rents on these units year-to-year. How do you go about finding these units?

Conventional Rentals

Whether pursuing a rent-stabilized apartment or not, the most common approach to renting apartments in New York City is using a competent broker. Yes, that includes the much dreaded broker’s fee. But when you pay a broker’s fee, you’re paying for value. What value, you ask? A city expert who can narrow down options for you. An expert in the legal ins and outs of renting in New York, who will be your advocate during negotiations. A resource who will expedite your search and streamline all processes.

How do these break down? The most common type of rental listing in New York city is exclusive listings. Exclusive listings entail listings where the landlord gives a particular agent the exclusive rights to represent the landlord’s interests in any dealings. As such, that agent must be involved in transactions involving that listing, regardless of whether an agent also represents the renter. Renters are always charged a fee of 15% annual rent. If a broker represents you, both your broker and the landlord’s will split the 15% fee. If you choose to go alone, the exclusive broker will do everything possible to drive the price up and profit the whole 15%.

The other type of rental listing in New York City is open listings. Far less common than exclusive listings, open listings put renters directly in contact with landlords. As such, hiring a broker gives renters more leverage to negotiate fees – and fees can be adjusted. However, fees usually end up at 10% annual rent. Yet even these can fall victim to bait-and-switch tactics. Brokers may advertise a 10% fee but spring a surprise inflated fee at the end of the transaction. This is why it’s crucial to find a reliable agent who prioritizes your interests in transactions.

Plus, as you’ve read, no-fee listings tend to be priced higher than market value, since the building or management company pays the fees internally. As such, the fee is there, whether you know it or not.

When push comes to shove, working with a broker will save you significant amounts of time and money. The team at TripleMint is well known throughout New York City, and can help you navigate the ins and outs of renting a New York City apartments. By working with them, you can make your search refreshingly simple. The fee will pay for itself.

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