Going Broke for Brokers

There are somethings about New York life I will NEVER get used to. Often, I will joke with friends who live elsewhere about the cost of living in this fantastic city, because like it or not the rent paid to live on this tiny island is astronomical -- typically 3 or 4 times what normal Americans pay and WITHOUT the bells and whistles of parking garages, gated communities, pools, tennis courts, etc. Hell, in this city you are lucky if you have laundry in the building and are rodent free!

Its nuts. And as I contemplate exchanging my suitcase life for something with more substance that isn't constantly on-the-go or sleeping on random couches with my few belongings piled in a corner, its scary to think that I will once again be paying way too much to be living in 400 square feet.

Rent in the city is crazy. BUT when signing a new lease or finding a new apartment, there is something else to be factored in that is almost heart-attack inducing -- brokers fees.

If you don't know, brokers are the 'used car dealers' of Manhattan. Since few people drive, but everyone has to have a space to live, so our fast-talking, wheelers and dealers come in the shape of apartment renters who promise you the moon and then give you a bill for 15% of the first year's rent. Think about it, if you are paying close to $2000 in rent X 12 X .15, you get a VERY scary number, a number that is paid UPFRONT before you even move in or get keys to your new home. Its frightening.

In the end, it all evens out. Brokers fees have a way of being the great equalizer in the Manhattan rental market. You can have two apartments that rent for the same per month, but the bigger and better one will have the crazy fee attached, making it more per month if you factor it into the rent.

Its one of the things about New York I will never get used to... and fortunately if you do it right, you only pay one or two fees in your years in the city. And while living in the city may keep you young and energetic, the times when you get the bill for the broker? Seriously, somebody call a doctor!