Everyone wants to live in New York City and, of course, no one wants to pay a fee to rent an apartment. But do you understand how No Fee nyc apartments in new york city rental buildings work? When you go to a real estate broker and they advertise no fee nyc apartments, that will mean one of two things. First, if you rent from an apartment rental building and it's No Fee, this means that the management company that owns the building is paying the broker a fee for bringing you to their no fee apartment rental building. Second, if you rent from a condo building, which is not a rental building, it means the owner of the individual unit will pay the broker a fee and, hence, you will not have to pay a fee. So what's the difference between an apartment rental building and renting from an individual condo owner? There is a big difference. An apartment rental building only rents apartments, they are professionally managed, they are not for sale, you typically have the option to renew your lease, depending on the building limited documentation is required to approve you, the process of renting an apartment is relatively quick (within 48 hours) and you may have to pay a small application fee which is typically used to run your credit through a third party source. A rental through a condo owner means that the owner is renting the unit out for a specific time period, the owner may sell the unit, you may not have the option to renew, the process will probably take longer than a month because the condo board has to approve your condo package, you will have to pay an application fee which could cost a few thousand dollars which is not refundable if they do not approve you, and you have to give them full disclosure of all your assets or anything that they ask you for. So why are we telling you this? Pre-2008 when the recession hadn't really kicked in, the normal practice to rent an apartment in nyc apartment rental buildings was to contact a real estate broker, pay a fee, which was 15% of the annual rent on the apartment and then the broker would find you an apartment and that was the norm. It was just how things worked when getting a new york city apartment for rent. Post-2008 when the recession was in full blast and the new york city economy was bleak, people were just not renting, couldn't afford it or were simply afraid to make any moves. So nyc apartment rental buildings needed to do something to get people to start renting again so they did one of two things: (1) paid the broker fee and (2) offered free rent as concessions to entice people to rent in nyc apartment rental buildings. So that's how No Fee apartment rental buildings came out. This trend continued through 2009 and until May of this year. Currently, the economy is improving and since all rental buildings were offering incentives for the last year and a half -- vacancy levels are now at record lows and since banks are not lending or making it very difficult to get a mortgage, many people have no choice but to rent. So today apartment rental buildings simply don't have to offer any incentives or concessions in order to rent their apartments. The trend is now going back to the way things used to be pre-2008 before the recession began. Currently, throughout the city, very few management companies are paying broker fees. This means that No Fee apartment rental buildings are becoming non-existent when renting through a real estate broker unless you are renting from an individual condo unit owner and the broker has the exclusive on the apartment. So what do you do? You find a broker that is willing to be flexible on their broker fee which is typically 15% of the annual rent on the apartment. The majority of larger real estate brokerage companies will not be flexible because they simply don't have to be flexible. The smaller real estate companies will typically negotiate with you and work hard to find you that perfect apartment in a new york city rental building.
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