From Wall St. Journal – Landlords No Longer Paying Broker Fees

Dear Renters of NYC – please read this from Wall Street Journal:

At least three major Manhattan landlords have decided to stop paying broker’s fees on some rental properties, signaling that many tenants need to brace themselves for extra expenses when apartment shopping.

This is a shift from last year, when landlords—desperate to fill empty units—would cover the broker’s fee, typically a month’s rent.

But with demand for rentals rising and vacancy rates falling, some of the city’s biggest landlords have notified brokers that they will no longer pick up the fee. That, of course, means renters must pay up.

“The pendulum is swinging back to a landlord’s market,” said Gary Malin, president of brokerage Citi Habitats. “Owners are going to do what’s in their power to stop overpaying, in their eyes, to attract clientele.”

In a recent email More

Rents are Up! Vacancies are down…read Crain’s article.


In case you have not heard:

Vacancy rates at rental apartments in Manhattan continued to decline in April, encouraging landlords to begin pulling back on tenant concessions, according to the latest monthly data by residential brokerage Citi Habitats.

The residential rental market has been improving since November, when vacancy rates began to decline. Last month, the vacancy rate hit 1.23%, down from 1.38% in March, according to the city’s largest rental brokerage.

“We are just unbelievably busy. Transaction volume is strong,” said Gary Malin, president of Citi Habitats, which rented more than 1,150 apartments in April, up a whopping 21% from the previous month. “Now that the market has been absorbing apartments, landlords are removing incentives.”

The first of those tenant concessions that are going by the boards is months of free rent. The good news, though, is that landlords are still paying for broker commissions, Mr. Malin said.

“Landlords are gradually taking away incentives More