If you are considering renting an apartment in New York City, you usually start by deciding how much rent you can pay per month before taking care of all the paperwork.
However, you should also keep in mind various fees, such as you need to pay nyc broker fee or landlord to secure the apartment and others that might surprise you during the process!
Check out our full list of the most common fees below:
1. Broker Fees
A broker’s fee should not be confused with the security deposit required by many rentals, which is often capped at one month’s rent – these fees are a separate cost ranging from one month’s rent to 12-15% of the total rent for a year.
For example, with Manhattan’s current average rental price of $ 3,500 to $ 6,000, you could potentially be paying brokerage fees of more than $ 10,000.
It might seem like a lot of upfront money, but remember that a broker puts a lot of work in for you (and we need to know that!).
For standard brokerage fees, your agent helps you with all the paperwork, shows several apartments a day that suit your needs, negotiates on your behalf, and is present when the lease is signed.
Keep in mind that homeowners sometimes pay brokerage fees for particular units (also known as a “no-cost apartment”) – this is generally more common during the winter months if you are looking to save money and still need help navigating the market.
2. Registration Fees
Application fees are separate from brokerage fees and the prices that tenants pay to cover a background or credit check cost.
According to the Department of State, the application fee cannot exceed $ 20 and is the only fee a landlord can charge a tenant.
Their guidelines also confirm that this is the maximum amount a broker can charge for an application fee. You may get valuable consultation from nyrentownsell.
3. Co-ownership or Co-ownership Fees
Condominium or condominium fees typically include:
Apartment owners’ fees for subletting their apartment.
- Travel costs (like using an elevator).
- Sometimes even renewal fees.
A pension imposes a fee on the apartment owner because often the building is not rented out and there are rules relating to subletting.
These charges are based either on the allocation of shares or the apartment’s monthly maintenance costs.
4. Deposit Fees
Apartment owners often insist on a guarantor for students, foreign nationals, and those without a credit history in the United States to secure a rental.
A surety can be anyone, such as a family member, friend, or employer, who promises to pay off the lease if a tenant cannot. Still, suppose you don’t have anyone available.
In that case, you can also contact an institutional guarantor, such as Insurent or The Guarantors.
For tenants in the United States, their fees vary from around 70-85% of monthly rent and 90-110% of monthly rent for international tenants with 12-14 leases.
5. Rental Insurance Costs
Not everyone ends up paying a rental insurance fee, as not all buildings make it mandatory – but for those that do, you will be required to complete the paperwork as part of signing the lease.
It might not be the highest rate (usually $ 100-150 per year), but you still need to budget.
6. Approval Fees
In new buildings, luxury tenants would have to pay for amenities such as a fitness center or rooftop. Some management companies require tenants to pay a separate amenity fee, while others spend it as part of the base rent.
The amenity fees are paid monthly or annually and will be offered on an optional basis or as a mandatory fee, whether you use the equipment or not.
7. Late Rent Charge
While all charges to date must be paid in advance, late rental charges can only be changed while your rental is in progress.
Usually, you will be charged a fee if you are five days late in paying your rent, which will cost you no more than $ 50 or 5% of a month’s rent, whichever is less.