Everyone knows that property rates in New York City are some of the highest ones in the entire world. Whether you are looking to purchase a property outright, or are looking to rent, you have to pay a far higher price when compared to any other city, or part of the country.
In the post-COVID-19 world, property rentals and prices are once again climbing steadily. This means that individuals that are looking to rent need to be aware of every possible strategy that can help them save money. The rental cost being not the only expenditure that one encounters.
Most of us look at rental apartments or homes by contacting real estate agents. However, every time we close a new property, we have to pay them a commission fee. This can vary between agent to agent, but is still an additional cost that has to be borne by the consumer.
In this article, we are going to shed light on the phenomenon of No Fee Apartments in New York City. We are going to clear some myths regarding the same and help you select the best properties in NYC in Heritage Collection’s no fee apartments.
No Fee Apartments in New York City: What does it mean?
We are sure that most of you looking for rental properties in NYC have come across the terms ‘No Fee Apartments’. You must have seen them on hoardings, listing sites, as well as heard about them from your real estate agents.
The thing is that for new home hunters, anything that is marketed or advertised as ‘No Fee’ automatically starts ringing alarm bells. Is the property not good enough? Or, am I getting the best deal by not paying commissions? Are questions that home hunters have.
In very simple words, a No Fee Apartment is one where the consumer or house hunter does not have to pay a broker’s fee to their agent. If an agent helps you find an apartment or a house, the common understanding is that you need to pay them a fee or commission.
This can vary depending on the price of the deal and can run into thousands of dollars. You need to understand that this does not mean that the broker who has shown you the apartment does not get paid. In most cases, it is the landlord that bears the broker’s fee for the deal.
In other cases, building management companies that work through word-of-mouth might eliminate brokers or agents completely. In such cases as well, the home hunters or the new inhabitants of the apartments might be saved from paying the fee or commission.
Important Factors Home Hunters should consider when going for No Fee Apartments
- Understanding the Building Regulations-
If you take the specific case of NYC, you will notice that most no fee listings are done by larger building management institutions. In other words, we are talking about complexes that come with their fair share of regulations. Make sure that you are going through each one of them and then making an informed decision. Dog ownership, for example, might be not allowed.
- Staying away from Scam Listings-
There are many brokers or agents who use No Feel Apartment listings as a way to bait new customers. They advertise the same as no fee and then inform that the same has been taken. They then proceed to pitch a new rental, but one which does not have the no fee marker. This is a way of luring new customers and getting commissions and broker fees from them.
- Understanding that No Fee Apartments are Limited-
If you look at the total rental market of NYC, you will note that no fee apartments comprise a small percentage of the same. This is why, the inventory is always on the lesser side. Since no fee apartments in NYC are in great demand, if you find a good deal, you should try to close as soon as possible. Delaying this would mean someone else would be closing instead of you.
The Bottom Line
Home hunters should do their due diligence when it comes to no fee listings. Checking the building rules and regulations, talking directly with the landlord, and making sure you are protected at every step of the way is important. If you have any questions, you would like us to address on the topic, please let us know in the comments below.