Save Thousands on Your Apartment with a NYC Rental Broker Fee Rebate
Are you looking to rent an apartment in NYC? You can save thousands off your broker’s fee by requesting a NYC rental broker fee rebate through an independent, highly rated, full service REBNY Member Tenant’s Broker.
Rental broker commission rebates in NYC are completely legal and non-taxable. You can earn a rebate on virtually every listing in the city. Don’t let a listing agent bully you into dual agency so they can earn double commission! Sign up in under 2 minutes!
Why Request a Broker Rent Rebate?
Reputation matters – our network of traditional brokerage firms have good relationships across the broker community. Because our brand name partner brokerages do not openly discount, landlords won’t automatically know you’re getting a better deal!
Quality matters – the quality of advice you’ll receive from the over 50,000 licensed real estate agents in New York City will vary greatly. Hauseit affiliates are among the most experienced brokers in the city.
You’ll be able to work directly with the Principal Broker of a REBNY Member Firm. Our partner brokers come with years of experience not only in real estate but also in investment banking, management consulting, fixed income trading and corporate law. They are home owners and investors who can help you navigate around the common pitfalls they’ve seen before.
What Are the Steps for Renting an Apartment with Hauseit's Renters Rebate Program?
Find Your Dream Apartment and Prepare to Make an Offer
In today’s highly competitive rental market, it’s important that you have access as a renter to every possible listing which fits your criteria. Regardless of whether you are searching for a temporary abode or a permanent home, our partner tenant’s agents will ensure that you have full access to every real rental property in New York City. The NYC rental market is flooded with open and fake listings. Having a tenant’s agent will ensure that you don’t waste time on listings that are no longer available.
Do you prefer to do most of the searching on your own? That’s completely fine as well. Once you’ve identified a property for which you are ready to submit an offer, our partner tenant’s agent will conduct a comprehensive market analysis in order to determine the appropriate bidding strategy.
Comparable Transaction Analysis: We will conduct a comparable property and transaction analysis between the listing you are interested in and similar units which are either on the market, recently de-listed or recently leased in the same neighborhood.
Landlord Intel: Your agent will conduct diligence on the landlord and the current story surrounding the listing by connecting with the listing agent. We will attempt to find out whether any offers have been submitted and the nature of those offers, the owner’s motivations for listing the home for rent, any special background surrounding the unit and board, the bidding process, and more.
Macroeconomic Analysis: Your tenant’s agent will also analyze the current macroeconomic environment, including current interest rate conditions, regional economic data and unemployment figures, mortgage applications and home starts data, as well as the current regional volume of home sales to refine your bidding strategy in the context of the actual ‘strength’ of the underlying economy and real estate market.
Gather Documentation and Submit Your Offer
After we’ve identified your target apartment and conducted market analysis to determine a bidding strategy, it’s time to prepare and present your offer. If you’re looking for a luxury rental with a higher price point, you’ll have the opportunity to negotiate the rent especially if the listing has been sitting on the market for a while. If however the apartment is at a lower or more competitive price point, you may want to simply apply on the spot at the full asking rent.
The application itself will vary depending on the landlord, but is typically fairly simple and able to be completed in a few minutes for most rental buildings. You may need to complete a more extensive condo or co-op sublease application if you want to rent a co-op or condo apartment.
Generally, you’ll need to have the following backup documentation ready for most rental buildings.
– Last two to four pay stubs or pay statements if you are an employee.
– A signed letter of employment on official company letterhead (current position, salary, bonus and length of employment).
– Up to two years of federal tax returns, especially if you are self employed.
– Your latest bank and investment account statements.
– A list of your previous three to five residences and the landlord’s contact information for each.
– A photo ID such as a passport or driver’s license.
Negotiate and Get Your Offer Accepted
Once your offer has been submitted to the listing agent or landlord, there will likely be period of negotiation where the two parties will engage in deliberations to discuss the specifics of the deal including monthly rent and other considerations (first month free, security deposit, co-signers etc).
In all likelihood your offer won’t be the only one on the table. In the event that there are multiple competitive offer packages including your own, the listing agent or landlord may accept multiple applications from prospective renters to compare and choose the best option.
Once your paperwork has been submitted and the landlord has agreed with you on terms, the landlord will run a credit report on you, typically at your expense. You’ll find out within a couple of days whether you have been formally approved!
Note: some landlords may also run a background check and a housing court check on you before approving your application. These may entail additional fees, or they may simply be factored in the application fee or credit check fee. The housing court check looks to see if you’ve been sued, or if you’ve sued a previous landlord in the New York City Housing Court. All of these precautions are due to the difficulty of evicting a tenant in NYC vs other parts of the country because of NYC’s strict tenant protection laws.
Condo and Co-op Rental Applications and Board Approval in NYC
If your dream apartment happens to be an individually owned condo or co-op apartment, you may have to complete a more extensive rental or sublease application required by the building. While most condos will not even have a required rental application, most co-ops will have a more extensive sublease agreement that will need to be submitted. This is because co-ops have historically encouraged owner occupancy and generally discourage temporary residences or subleasing.
Even though the sublease application will be nothing like the onerous co-op board purchase application that potential buyers need to fill out, it will still be usually more invasive than your typical rental building’s one page form. Furthermore, you may have to pass a coop board interview before your sublease application is approved.
Co-ops are known to be restrictive in who they let into the building! Even though the NYC coop board package purchase application process is more challenging, it’s important that you treat either application as professionally as possible. Your tenant’s agent will guide you through the process.
Sign Your Lease and Get Your NYC Rental Broker Fee Rebate
Once you’ve been approved, it’s time to sign the lease! Leases are still typically signed in person even though e-signatures are slowly gaining ground. You shouldn’t try to re-negotiate at the lease signing. Not only would the landlord have to print out a new set of documents if your new demands were agreed to, you’d be starting off the relationship on a sour note.
At this time, you will receive the keys to your new home and your broker will discreetly hand you that NYC rental broker fee rebate. Ready to get started? Visit our NYC rental broker fee rebate registration page to sign up for a free consultation in under 5 minutes!
I’m already working with an agent. Can I still receive a rental broker fee rebate?
Yes! Prospective tenants can change their representation at any time. Renters are never required to sign any sort of exclusivity agreement and you should be wary of any agent who asks you to do so. Even if you’ve signed a New York State Agency Disclosure Form does not mean you can’t choose a new agent. The disclosure form is just that, a government mandated form which you can refuse to sign which simply acknowledges that you understand who represents whom.
What do I do at an open house if I want to earn the rent rebate?
Before attending any open house, you should contact us right away so we may assign you an agent. Then, whenever you sign in to an open house you should indicate that you are being represented by your agent. You can even go so far as to sign in with your agent’s contact information to save you the hassle of being chased for feedback!
It’s not a problem if you’ve already attended an open house without representation. You can choose to have tenant representation at any stage of your process!
Should I tell the landlord and listing agent that I’m going to earn a rental broker fee rebate?
Absolutely not. One of the key benefits of working with an independently affiliated, traditional broker through Hauseit is that the landlord and listing agent won’t automatically know you’re getting a rebate!
Our partner brokerages work hard to maintain their full service, traditional brand image and good relations with the wider broker community. You’ll have the opportunity to work with a real broker plus discreetly receive a discount on your apartment rental!
Can I still search for properties and attend open houses on my own?
Yes. We actually encourage that you do this, because nobody knows more about your own goals and interests than yourself. All you need to do is identify yourself as being represented by the agent we assign to you at any open houses or property tours. There is no need to make an appointment to stop by an open house unless it is “by appointment only.” You can simply search for and stop by any open houses on your own schedule!
Where do I begin if there are no open houses scheduled for the apartment I want?
If a property does not have any open houses scheduled or is holding an open house by appointment only, simply contact us to get started. Once we assign you an agent, you can either have your agent reach out to the listing agent to schedule a private showing or you may do so directly and indicate that you are being represented by your tenant’s agent.
Is it too late to get a rent rebate if I've already contacted the listing agent?
You still have time! Please contact us as soon as possible so we may get you started and ensure that you will be eligible for a rental broker fee rebate upon closing. We never recommend negotiating with the listing agent unrepresented because it would mean that the listing agent is then a dual agent and simultaneously representing the best interests of both the landlord and tenant at the same time. This sounds hard to believe and it is. You always want an agent who has no conflicts of interest with you and the landlord. You want to be represented in full confidence.
Is it too late to qualify for a rent rebate if I've already registered at an open house?
No it’s not too late, you have the right to choose your own representation at any time! Please contact us right away to discuss your specific situation. It is legally required and part of REBNY’s rules for listing agents to allow tenants to hire their own agent after visiting a property without representation. The first step would be to contact the listing agent you have been corresponding with, mention that you want to work with a tenant’s agent for your own protection, and copy your agent on the email.
Does my rental agent need to show up to every showing?
No. You are free to visit properties entirely on your own. All you should do is contact us beforehand so we may assign you an agent. Then at any open house or property showing you go to, we ask that you identify yourself as being represented by the agent we’ve assigned you.
Are rental broker fee rebates legal in New York?
Yes, commission rebates are legal in 40 states including the State of New York. It is completely legal in these states both for an agent to offer and for a client to accept a commission rebate in conjunction with the purchase or rental of residential real estate.
Ten states currently have laws that ban rebates. Nine states have a full ban on broker rebates: Alabama, Alaska, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Oregon, and Tennessee. In addition, Iowa prohibits rebates when the consumers use the services of two or more real estate brokers during a transaction.
Please consult your attorney to ensure that commission rebates are legal your area before engaging in any such arrangement. This article is not a substitute for legal advice.
In fact, on April 20th, 2015, Attorney General Eric T. Schneiderman issued an open letter urging participants in the New York residential real estate market to take advantage of a recent change to the State’s Real Property Law confirming that real estate agents may rebate a portion of their commissions to clients. The New York Attorney General released a letter to the New York Real Estate community urging them to take advantage of rebate commission opportunities to increase price competition and benefit consumers. A full copy of the letter may be read below:
Dear participant in New York’s real estate industry:
I am writing to alert you to a recent change in New York State’s Real Property Law that was strongly supported by my office. This law has the potential to breathe new life into competition in the residential real estate brokerage industry, to the benefit of all New Yorkers. I urge you take advantage of this law and help reinvigorate price competition among real estate brokers in New York.
In December, a statute was signed into law amending Section 442 of the New York Real Property Law to make it completely clear that it is lawful for a broker to pass through, or “rebate,” part of his or her commission to the client. This legislation arose out of an investigation by my office into competition in the residential real estate brokerage industry. My office worked together with the New York Department of State, the New York State Association of Realtors, and others in the industry to initiate the clarifying legislation.
As you know, for most residential real estate sales in New York State, including New York City, the seller’s broker is usually compensated by receiving a contractually set commission from the seller. The buyer’s broker, however, is not typically paid by the buyer; he or she instead receives a fraction (often half) of the seller’s broker’s commission. Due to this payment structure, often the best way for a buyer’s broker to compete on price is to offer to rebate part of his or her commission to the buyer. Such buyer rebates are legal in most states, including New York. But until recently, some people in the industry may have read Section 442 to suggest that this type of rebating was not permitted in New York. As of December’s legislative fix, there is no room for debate: commission rebating in New York State is legal.
Such rebating is also procompetitive and good for consumers. One reason my office helped initiate this legislative change was because we were concerned that confusion over the legality of rebating may be hindering efforts of real estate brokers to employ more innovative, consumer-friendly business models. For example, the widespread use of sophisticated real-estate search websites now allows buyer-side brokers to offer more limited-service, lower-fee models, under which clients do more of their own legwork when searching for properties. Brokers adopting such models can offer lower commissions (by rebating) and, in principle, may also be able to serve a larger number of clients.
I encourage all real estate brokers and salespersons in New York to consider enhancing the choices available to real estate buyers by offering lower commissions (by means of rebates) to some or all of your clients. I also emphasize that my office will investigate any allegations of boycotting or discrimination against brokers engaged in rebating or other lawful discounting practices. Finally, I urge consumers and other buyers of real estate in New York to take note of your right to bargain with your broker for a lower commission.
For the text of Section 442 highlighting the recent amendment, and additional information about competition in the real estate industry in New York, see my office’s Antitrust Bureau webpage at here.
Eric T. Schneiderman
State of New York
Will I be discriminated against by listing agents because of the rebate?
Absolutely not. It is extremely important to realize that our partner brokers are traditional brokerages that primarily focus on full commission work. Our partner brokers never openly discount nor tarnish their brands by openly offering to work for less. They have discreetly agreed to offer a discount to Hauseit customers. As a result, the landlords and listing agents will never know you are receiving a rebate unless you decide to disclose it!
Furthermore, the New York Attorney General Eric T. Schneiderman recently issued a letter stating that his team will investigate any allegations of discrimination against brokers engaging in rebating. So if you notice any foul play, we encourage you to contact us so we may report these individuals directly to the Attorney General for investigation.
How big will my NYC rental broker fee rebate be?
Depending on what you’re looking to rent, your rebate can be as big or bigger than a typical year-end bonus. In New York City for example, where the average sale price is over $2 million and average rent for a 1 bedroom apartment is over $3,000, your rent rebate check could be worth several thousand dollars, payable discreetly by check after closing.