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Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 11829
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I would like to know what the standard NYC application fee

Customer Question

I would like to know what the standard NYC application fee is for a 12,000 a month loft apartment would be. I don't think it matters what the apt rent is but I just wanted to add this. I rented an apt last year and the rental broker charged me 800 dollars and this year I knew the neighborhoods better but decided to use him Again and I actually told him about two apartments and I am Going to fill out rental applications for both and he is charging me 1000 dollars. Now I know him a little better and I know he is in debt up to his ears and I think he is overcharging me. I really wonder why he would not think I would look into the amount now that I am not under the gun and not pressed for time.
Submitted: 1 year ago.
Category: Finance
Expert:  Lane replied 1 year ago.

Hi,

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NYC real estate brokers who specialize in rental apartments generally charge between 8.5% and 17% of the annual rent (the fees tend to be higher in Manhattan; less in the outer boroughs and in New Jersey), so hiring a broker to do your research can easily cost you several thousand dollars. For example, the broker's fee for a typical Manhattan apartment that costs $1500/month is $2700

Source: Urban Edge No fee rentals

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And that's my experience as well ... I have a friend here in Atlanta who is licensed in NY ... just flew out today to show a commercial property .... She tells me that even at the low end the brokers fee is is almost never LESS than 1 month's rent

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BUT your instincts are good, in my opinion... this is NOT something that necessary ... as a matter of fact, many rental brokers here is Atlanta move on VERY quickly if someone doesn't take the first apartment they show them ... it's very rare to find what the model is SUPPOSED to be; working hard with a small number of clients, to find what they need. To most brokers it's a numbers game ... somebody will eventually take the apartment in question.

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I think your instincts are also good, that if you have some time, there's just NO reason to use one (UNLESS, MAYBE - and this takes time as well - you find a really good one, through word of mouth, that has really WORKED for someone, that really does represent YOU)

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Expert:  Lane replied 1 year ago.

But yes, 1000 is very much in line ...

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NECESSARY?, No.

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TYPICAL?, I'm afraid so.

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Let me know if you have questions

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Lane

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I hope you'll rate me positively, using the stars on your screen … (that's the only way we get credit for the work here) … based on thoroughness and accuracy, rather than any good news/bad news content. But again, please let me know if you need more here.

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Customer: replied 1 year ago.
You didn't answer the question, I know about fee and no fee apts and how much they can be I'm paying 15,000 a month for an apt what I want to,know is what the standard rental application fee is for a credit check etc
Expert:  Lane replied 1 year ago.

My apologies ... given the amount of time you spent on the broker issues, I thought that was the question.

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You said:

"I rented an apt last year and the rental broker charged me 800 dollars and this year I knew the neighborhoods better but decided to use him Again and I actually told him about two apartments and I am Going to fill out rental applications for both and he is charging me 1000 dollars. Now I know him a little better and I know he is in debt up to his ears and I think he is overcharging me. I really wonder why he would not think I would look into the amount now that I am not under the gun and not pressed for time."

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An application fee in NYC runs between $25 and $100.

Customer: replied 1 year ago.
Because I have read application fees are 100 dollars or less I didn't see the second page,of your answer the way screen was split. The answer was the very last sentence. So your saying application fee for a credit check could be a 1000 dollars and is it a flat fee or based on something other than greed.
Expert:  Lane replied 1 year ago.

Flat fee ... 25 to 100

1000 is enough to get the broker's license suspended.

Now, the broker's FEE being 1000 is about right ... but the application fee should be between 25 ad 100

Expert:  Lane replied 1 year ago.

Two different issues ... again so sorry, I though you were asking about the brokers fee

Expert:  Lane replied 1 year ago.

Here's some information for users at City-Data.com.

It's anecdotal information (not from a survey or study) but good example of real people and the consensus that even $250 would be WAY of out line for the application fee.

http://www.city-data.com/forum/new-york-city/502603-whats-deal-application-fees.html

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And from here: http://www.nakedapartments.com/guides/nyc/applying-and-lease-signing/application-fees-and-deposits

The combined fees will run you $60 - $150 per person for a rental building

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And from the very good source, "Urban Edge," http://www.urbanedgeny.com/apartment-guide/rental-agreement-application-information

"Make sure you have enough money in your checking account to sign that day. Don't be caught short if you find the perfect apartment and the landlord is ready to approve you right away. An application fee of $25 to $100 is usually required. Usually a personal check is accepted, though some landlords are known to require cash or a money order."

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Hope this helps

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Lane

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Customer: replied 1 year ago.
Let me tell u what he is going to charge me so I'm quite clear the apt is going to be12,500 so he'll get at least 12,500 one months rent unless the mgmt company wants to pay him instead. And he wants to charge me 1000 for just an application fee for a credit check so your saying that's unheard of. Last year he charged me 800 and I was naive to pay that but this year I have learned a lot about real estate charges and fee and no fee apts.
Expert:  Lane replied 1 year ago.

OK

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The bot***** *****ne here is that the application fee (charged by the landlord - management company OR individual) should be in the 25 to 100 range ... and the realtor's commission should be from 8.5% to 17% of the annual rent.

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I hope this has helped

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I would really appreciate a positive rating (by your clicking on the stars on your screen). Otherwise I will not be credited with a portion of what you've paid JustAnswer.

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Thanks much, and good luck with this!

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Lane

Expert:  Lane replied 1 year ago.

Hi just checking back in.

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One more time ... 25 to 100 for the application fee. ... 8.5 to 17% on the broker commission.

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If this has helped, I would appreciate a positive rating. That's the only way JustAnswer will credit me with a PORTION of the amount you given them.