Introduction by ebook's author:
Maybe you have a giant moving bonus from a hedge fund to help you ease the transition. You can hire a to broker do the legwork for you. Good for you! Have fun writing a giant check. Maybe you can cover your bed with hundred dollar bills and roll around in it when you’re done.
If you are in this chosen minority, this article is not for you. You can go back to whatever it is you do to print money now.
Wait… You don’t get paid like an investment banker? You would rather not pay a month’s rent or up to 15% of the annual rent on top of first month’s rent and security? Then read on.
It’s sadly true. New York is unlike any other city in the world when it comes to Real Estate. Many people pay exorbitant broker fees upwards of $5000-$10,000 because they simply don’t have a choice.
You see, a select few major landlords own a great deal of the rental real estate that is available, like 40-50%.
These are massive, billion dollar private companies that have been around for more than a century in most cases. They own hundreds, if not thousands, of buildings across the five boroughs.
These landlords would have to hire dozens and dozens of people to rent these apartments, to field questions from tenants, do paperwork, show apartments, and waste tons of time with back and forth.
They have a willing legion of commission-based real estate professionals that are experienced, hungry, willing to spend their own money to advertise, and able to negotiate deals on their behalf in order to deliver them a pre-vetted tenant who is ready to sign on the dotted line.
Here’s the best part (for the landlord) and the worst part (for you). The demand is so high, and the power so one sided, that the landlords don’t even end up paying for the broker’s services. Yep. You got that right, the tenant ends up paying thousands to someone whose loyalty ultimately does not lie with them.
Seems unfair right? Well, luckily there’s a better way. Here are a few things that EVERY single apartment hunter in NYC should drill into their skulls before even thinking about trying to rent in NYC.
2) You DO NOT need a broker to rent an apartment, unless that broker has a written “exclusive” agreement with the landlord.
4) You can save THOUSANDS of dollars by renting directly from a landlord and running the deal yourself. The average priced apartment in NY commands a fee of $5000. What could you do with an extra $5000?
Now this may seem all well and good, but you may be asking yourself “Where do I start? Do I really have enough time to be wasting on trying to find and deal with landlords?” Isn’t that what Craigslist is for?
Ah, Craigslist. Here’s the problem with CL. 90% of the people advertising apartments in NYC on CL are brokers. If you have ever tried to use CL to find an apartment your experience probably went something like this:
“Oh my god! Look at all the great deals! This is going to be easy!” you… Read more…
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