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Different between Co-broke and OP

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  • Different between Co-broke and OP

    Hi everyone, I'm a new agent and just had a question in regards to the commission structure for rental apartments.

    I've read online on a Hauseit medium article that co-broking means that the seller pays the listing agent a fee and that agent is obligated to split the fee with the tenant's agent. However, when I contact the listing agents of several RLS listings (properties that must be co-broked) they say there is a fee for the tenant. I thought co-broking means that the listing commission is paid for by the seller.

    If someone could explain what I'm missing here, it would be appreciated, thanks.
    To co-broke means to split commission with another broker. In real estate, the listing agent will secure a commission from the seller that is split with a buyer’s agent. This splitting of…

  • #2
    Hi, I believe the article you read is mainly talking about sales, where co-broking is fairly regulated and required by REBNY. For rentals, it's an entirely different story as there are many types of fee structures that are permitted. It's really a bit of a wild west!

    In rentals, who pays the fee really depends on the price point and how hard it is to rent the property. Because NYC has a very low vacancy rate, landlords can generally get away with the tenant paying the broker fee. This is especially the case for lower priced, easy to rent apartments.

    However, for higher priced, luxury listings which are harder to rent, the landlord might pay the broker fee vs the tenant. In these situations, the listing will be listed on public websites as "no fee." What typically happens is the owner will pay the standard 15% broker fee. This type of listing can be co-broked, meaning the fee will be split 50/50 with a tenant's broker if the tenant has one. However, in rentals a no fee listing can also be marked in RLS as CYOF (Collect Your Own Fee). This means that the tenant will have to pay the tenant's broker if he or she insists on representation.