Are you only searching no-fee apartments in order to save money?
We’ll show you how to adjust your rent to account for a 15% broker’s fee. You’ll expand your apartment choices significantly, and spend the same as you would on a no-fee apartment.
Why are there so few no-fee apartments? Two reasons:
1) It’s not easy to bypass brokers because most landlords rely on them to find tenants. They do this because the alternative is expensive. There’s a significant cost for landlords that rent out their apartments directly – staff salaries, advertising, office space, etc.
2) If you’re using a broker, no-fee apartments are only available in buildings where the landlord will pay the broker’s fee so you don’t have to. And unfortunately, for a great apartment, a landlord doesn’t need to pay the fee for you. He/she knows the apartment will rent out without the added incentive of no-fee. (More on why this is the case in a previous blog post.)
So how do you search for with-fee apartments in order to expand your choices, but not spend a penny more than you would on a no-fee apartment?
Try searching for with-fee apartments, but lower your max rent to account for the fee spread over the length of your lease. You may be thinking: “I don’t want a cheaper apartment!” But while you definitely will have to sort through some apartments that don’t meet your standards, you’ll likely come across a few gems that you otherwise would never have seen by searching no-fee only.
The Naked Apartments team crunched some numbers from our rental database and came up with some interesting stuff.
For one thing, we could all save a bundle by moving to Detroit or Phoenix. If that’s not an option, consider looking in neighborhoods adjacent to your desired ones – eg Bushwick instead of Williamsburg – to find some significant savings without moving too far.
Craigslist is usually thought of as a simple classifieds site – that’s entirely free. What many don’t know, however, is that apartment listings are not free for NYC brokers. It costs up to $10 per post. (In addition to NYC brokered rentals, the site also charges $25-$75 per job posting in 19 major markets and $10 for “Therapeutic Services”. See Craigslist Pricing.)
So how much money is Craigslist pulling in from the NYC broker community? Based on our data sample of a full week in April, and the current rate of $10 per ad, Craigslist revenues are approximately $287,000 per week, which over a full year comes to about $15 million dollars.
So you want to live in Manhattan and want to live somewhere downtown, but don’t really care which neighborhood. Well, since we love you so much, we launched a new feature just for you. Instead of choosing all “downtown” neighborhoods one-by-one, now simply choose…. “downtown” and use the pretty map to help you.
This feature is available for all neighborhoods in Manhattan, Brooklyn, Queens and the Bronx.
The feature is oh so easy, and so far, you seem to like it. It’s already been used over 20,000 times.