Normal commission for rentals in NYC

4 Replies

So, friend recently told me that his brother paid 15 % of first year's rent ($6,000 * 12 months) to his realtor for renting his place out in NYC. Is this normal?

Hey @Mike Fatah I've worked on a number of nyc rentals. 15% of the annual rent is the standard brokers fee. Some brokers are willing to offer concessions depending on the apartment. Occasionally landlords will pay our fee or a portion if the project is new development or they're looking to get a lease signed quicker.

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Originally posted by @Mike Fatah :

So, friend recently told me that his brother paid 15 % of first year's rent ($6,000 * 12 months) to his realtor for renting his place out in NYC. Is this normal?

 For a prime location, and with a "name brand" brokerage (in NYC - Elliman, Corcoran, etc.), that's normal.

I have properties in various parts of NYC and depending on the area and the firm I use I end up with one of three scenarios:

-1 month fee, landlord pays: up and coming areas of town (eg; Bushwick, Bed-Stuy a few years ago)

-1 month fee, tenant pays: lower end/mass market brokerage firms, use this option for "run of the mill" properties

-15% fee, tenant pays: higher end/"name brand" brokerage firms, regardless of specific area.  I use this for higher end rentals where I'm looking for the caliber of tenant that a name brand firm attracts

Wow!! Having lived in Texas (Houston area to be exact) for quite some time now, I can't even begin to tell you guys how crazy that sounds. But I suppose it's all economics.

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