No Fee Apartments

New York City real estate can be a costly endeavor. As a renter, you may already feel overwhelmed by the process, and may be further discouraged by the prospect of paying an additional fee to the realtor employed in your search for a new apartment.

The last thing you want, with the already strenuous financial requirements of being approved for a rental property — landlords in New York generally demand that your yearly salary be forty times the monthly rent! — is to be saddled with an additional brokerage fee, which is usually 15% the annual rent, just when you’re ready to close the deal. Starnest has fostered relationships with a number of landlords throughout the city who offer no-fee rentals.

What is a no-fee rental? Do not be misled. All real estate transactions include brokerage fees. The difference with a no-fee apartment is that the cost you incur is paid by your landlord and not by you. For those with small budgets or limited resources, no-fee apartments are often the first place to look.

Why would landlords pay such fees? As stated above, no-fee apartments are the first places many renters look. For obvious reasons, these apartments are in greater demand and rent faster. The result is success for all three parties: the realty office receives its payment for bringing together the landlord and tenant, the renter has greater leverage in making a deal for a great apartment at a great price, and the landlord is able to more quickly fill his vacant space.

The diminished economy and real estate market mean more vacancies and better deals. Times are tough for landlords, and renters can take advantage of their newfound upper hand. Tenants are increasingly a precious commodity, and more and more landlords are taking broker fees upon themselves in order to attract them. You could try to bypass brokers altogether and deal directly with landlords, but no-fee apartments allow you to save on fees while also enjoying the benefits of a realtor’s expertise. You can have your cake and eat it too.