Things You'll Need:
- Computer
- Internet access
- Phone
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Step 1
Understand the differences between a Fee and No Fee Apartment.
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Step 2
Fee Apartments
For starters one must understand that the overwhelming majority of apartments that are available at any given time in Manhattan are FEE apartments. What this means is that if you use a broker to find your new apartment, the broker must be compensated by you for their work. They must charge their client a fee; this fee is normally 15% of one year's rent (for a $2,500 apartment a 15% Fee would be $4,500). In most markets in the country, this fee does not exist, instead agents are paid by the apartment owner to find a qualified tenant; New York City is an anomaly in this sense. -
Step 3
No Fee Apartments
In all markets outside of New York City the broker who finds a client for the owner's space will be paid a commission. In New York City, when you see an apartment advertised as "No Fee" it means the owner is paying the broker a fee to find him a tenant. This fee called an "OP" or Owner Payment is usually 8.33% of a years rent. Again, the reason an OP can mean no fee to the tenant is because the broker is being compensated for their work by the owner, not by you. -
Step 4
The true differences between Fee and No Fee
To explain this better I will use 2 apartments for rent as an example. Apartment A and apartment B are in the same building with the same size, same view, same amenities. The difference, apartment A is being advertised as a no fee apartment for $2,000 because the owner is paying an OP. While apartment B is being advertised as a fee apartment for $1,835. Over a 12 month lease both apartments will cost you $22,000 - no matter which you choose once factoring in the fee you have to pay a broker on apartment B. -
Step 5
Finding your self a real No Fee Apartment
To find your self a "true" no fee apartment head to www.urbansherpany.com - This website has a database of over 4,000 no fee rentals and many guides on how to rent without the help of a broker.
What Urban Sherpa does to give you no fee listings is they offer over 4,000 no fee listings that are updated daily. You find an rental listing that you like, and then contact the owner directly setting up an appointment to see it. Then through the owner of the building directly you sign the lease.
When the lease is signed, you will owe no fee to any broker and the owner will owe no fee to the broker. This will lead to the owner offering either a free month of rent, or a rent reduction. -
Step 6
Tell all your friends about the excellent free service that www.UrbanSherpaNY.com provides.
