Nice Try , But There is a Fee

Sorry for being MIA. I have been fighting a cold, had company in town, and skipped town for a few days. Now I'm back in commission just in time to file my tax return. Oh joy.

Broker fees are an inevitablity of renting an apartment in New York City. Even if you somehow luck into an apartment and don't pay a fee, you will likely see several places that require one. Most of your friends will pay the dreaded brokers' fee. Don't feel bad--even brokers often pay the dreaded broker's fee.

Why? Well, the laws are written in such a way that they favor tenants. Let's say I decide to stop paying rent. It will take my landlord six months to a year to be legally rid of me. He can't just lock me out. He has to go through the housing court system, which takes awhile.

So renters, in essence, are paying their brokers to perform due diligence for the landlords. If it sounds screwed up, it kinda is. Landlords rarely pay brokers' fees on residential rentals. They don't have to--the laws of supply and demand show that housing in NYC is in enough demand that renters will pay fees. We are getting paid by you to vet your application, run your credit, and essentially verify that you aren't a deadbeat or a deadbeat-in-training. That's also why so many apartment applications require so much paperwork: tax returns, bank statements, employment verification letters, and so on.

Many people bitch about this when they first start apartment hunting here.

"Why is there so much paperwork? It's easier to get a mortgage back home than it is to rent a crummy apartment here," some say.

Well, I can't disagree. Look at it this way--once you're done with this place, securing housing anywhere else in the U.S., with the possible exception of San Francisco, will feel incredibly easy.

None of these realities stop clients from sometimes trying to talk me out of my own payday.

A recent example:

"I really like this place. There's no fee on it, right?"

"There is definitely a fee. I don't post "No Fee" ads and I mentioned the fee to you on the phone when we made this appointment."

The guy looks defeated.

I shrug and say, "Nice try."

We both laugh. He doesn't rent it, but someone else who sees it after him does.

Supply and demand, folks.