Brokerage fees are too high!
Realtors collected nearly $20,000 in commissions last month for cheap Upper West Side pads, according to tenants who paid out the fabric.
The one-bedroom unit was originally advertised on StreetEasy for $3,750 a month, but agents told future tenants that the rent was actually stable and they would steal it for just $1,725.
That’s well below the average rent in Manhattan. beat the record $4,150 per month in July. And future rent increases for apartments City Rent Guidelines Committee — Approved a 3.25% increase in one-year leases this year.
Then Ari Wilford, an agent at Manhattan’s City Wide Apartments, dropped the other shoe. Brokerage fee is 200,000 yen.
“He said, ‘It makes sense in the long run given the stable rents and brokerage fees.’ I reminisced.
The lessee said he was able to get Wilford to shave $500 off the fee before signing the contract, and took a significant amount out of his savings to pay for it.
This apartment is near Central Park and the Frederick Douglas Playground in what owner Sorill Management describes as a ‘rustic pre-war six-story elevator building’.
Despite the huge cash outlay, the pads weren’t even painted prior to the tenant’s move-in date of July 1st.
He said he paid more to keep his belongings for a week so the landlord could add new paint.
Finding an apartment in New York City has become so difficult that prospective tenants stand in a long line To secure a narrow space.Gone Pandemic price cut When bidding war Even some units are breaking out.
But a $20,000 brokerage fee is unusual, even in today’s hot rental market, experts say. 15% of the rent.
“I’ve never seen it and that’s not what I do. All my commissions are 15%,” said Marvin Michelle with Douglas Elliman.
Broker Dolly Lenz told The Post that the practice “probably isn’t kosher,” and if tenants complained loudly, “you could probably get your money back.”
One person who saw the Upper West Side apartment said the $20,000 fee was a glaring let-down for him, along with insufficient natural lighting in the room.
“I just thought it was the most ridiculous proposition,” said a potential tenant who didn’t want to be nominated.
Another City Wide Apartments agent also demanded a very high rate for a stable Upper East Side railroad apartment with a monthly rent of $2,250. hell gate website in June.
According to the site, the resident declined a reported $10,000 payment.
The State Department, which licenses real estate agents, said there is no law limiting brokerage fees.
“However, the broker’s commission must represent the actual service charge. You cannot charge exorbitant commissions that are unreasonably related to the work you earn or have an undisclosed conflict of interest, spokesperson Mercedes Padilla said.
“The agency takes licensee behavior seriously and investigates complaints filed on a case-by-case basis,” she added.
The lessee was then temporarily deferred from paying brokerage fees. State Department DOS withdrew its position in May 2021 after a legal challenge by a real estate industry group.
Wilford declined to comment. His boss, Michael Jacobs, did not immediately return requests for comment, nor did Sorill Management.
Additional reporting by Jennifer Gould