How to Negotiate With a NYC Apartment Broker

Apartment seekers in NYC often require the services of a real estate agent or apartment broker to assist them in securing an apartment lease. While the fees charged by apartment brokers can be quite high, the following are some hints on how you can successfully negotiate with a NYC apartment broker.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Internet access
• Telephone
• Knowledge of current real estate market

1. What fee does the broker charge? Broker fees in NYC can range from one month's rent to 15 percent of the annual rent of the apartment you wish to rent. Before attempting to negotiate with a broker, make sure you know what the fee is that his office normally charges. That way, you will know where to begin the negotiation.

2. Have you done your research? Customers who arrive at a broker's office with knowledge of the neighborhood and an awareness of the current rental market show the broker that they mean business. Before you go to search for apartments, use the Internet and newspapers to research the different neighborhoods that you are interested in, and keep an eye on the rental prices you see in advertisements.

3. Ask the broker if the apartment you are interested in is an "exclusive listing" or an "open listing". If it is an open listing, the broker will be more likely to negotiate her fee, rather than see the business possibly go to a competing broker. Even if the apartment is in fact an exclusive listing, this question will still demonstrate to the broker that you have educated yourself on how the rental market works.

4. Ready to begin the negotiating? Start out by asking the broker if the fee is negotiable. Some brokers may be willing to lower the fee on the spot. If the broker requires more encouragement, read on.

5. Are you an "easy deal"? Customers who have only seen one or two apartments, have all their paperwork ready, finances in order, don't need a guarantor or co-signer and are ready to sign on the dotted line generally make an "easy deal" for the broker. Point this out to the broker when asking to negotiate the broker's fee.

6. Instead of simply asking "Can't you lower your fee?", try a bolder approach. Saying "If you agree to lower your fee from 15 to 10 percent, I will do whatever I need to do to secure this apartment here and now" sends a much stronger message. Brokers are often reluctant to promise a lowered fee until they know they have a definite deal on the line.

7. What else can the broker do for you? Perhaps he knows that the landlord is a bit negotiable on the rent, or that the landlord may be willing to install a new refrigerator. Think beyond the broker's fee when negotiating with a broker.

8. Cash talks. Ask the broker if paying the fee in cash will result in a reduction of the fee.

Tips & Warnings

• Customers sometimes attempt to go behind a broker's back to rent a previously seen apartment, contacting the landlord themselves or visiting different brokers to see what fee they would charge for the same apartment. Remember, the law protects brokers in this instance. If you are shown an apartment by a broker, the only way you can rent it is through that same broker. If you are taken to small claims court, you may have to pay a broker's fee twice!