Spiking Broker Fees in Williamsburg
One unforeseen outcome of the Manhattanization of Brooklyn: rising broker fees. The Real Deal reports that renters looking to cross the river for the luxury high rise lifestyle of Williamsburg are willing to pay a hefty sum to do so, and not just in rent. “Brokers at some of the higher-end rentals have realized that…
One unforeseen outcome of the Manhattanization of Brooklyn: rising broker fees. The Real Deal reports that renters looking to cross the river for the luxury high rise lifestyle of Williamsburg are willing to pay a hefty sum to do so, and not just in rent. “Brokers at some of the higher-end rentals have realized that they no longer need to settle for a paltry commission of one month’s rent (around 8.3 percent of an apartment’s annual rent),” they say—now they may ask for 10, 12 or even 15 percent of the annual rent to help folks find a slot in a new building. Anybody had to shoulder such fees?
In Williamsburg, Upping Fees to Match Expectations [TRD]
Toll Bros., Williamsburg. Photo by zombotic.
once I called a landlord who owns a building next to mine in park slope and pretended to be a potential tenant to find out what rent he was charging.
He said that he wants 2 months security, 1 month rent, and 1 month finders fee BECAUSE HE IS ALSO A BROKER!
Now that is greedy scum!
Always a trade off of time vs. money — generally if you’ve got the money you don’t have the time and vice versa. I always tell people, if you’ve got the time to go wading through all the cr*p on Craigslist, go for it. Mostly after three or four experiences in “East Williamsburg” or “South Slope” they get the idea.
When I was renting I’d never use a broker. Took a bit of leg work and patience, but it always worked out.
Most Brooklyn brokers in “desirable” areas have always charged 12% — it’s only the “fringe” areas — like Williamsburg, Greenpoint, etc., that charged one month. Now that the biggies (Corcoran and Elliman) have moved into Williamsburg, it’s normal that the pricing should follow.
I paid a 12% broker’s fee for my first apartment, in Brooklyn Heights in 1981 — of course the rent was much lower then, so the actual dollar amount of the fee was as well.
And some listings can only be rented through certain brokers — these are called exclusive listings. Even if an unscrupulous person tracks down the owner and tries to rent directly, the owner would then have to pay the fee to the broker, per a signed agreement. And these are becoming more and more common, as owners discover what a pain in the neck it is to deal with potential renters.
The only problem tenant I ever had was the one I got through a broker, and the problem I had with him was he felt for the rent he was paying ($1200 for a large Clinton Hill 2-bedroom in 2000), I should wash his dishes and pay his phone bill. Luck of the draw, I suppose, but given how easy it is to find good tenants for a decent apartment these days, I’d think the amount of a broker’s fee tends to buy some good will on the part of the tenant. Craigslist!
i borrowed a tripod and DSLR camera and took some good photos and put them on craigslist then showed a place on the weekend and it was rented, guess i saved someone %12, was easy
Some brokers create the illusion that their listings can only be leased through them. Beware.
Why is this even news? I remember paying 15% broker fee back in year 2000 to live in Forest Hills/Queens.
Plenty of Greenpoint brokers charge 1 mo… Ula’s, Proper, probably others.