Broker Fee Calculator for Rentals in NYC

Renting an apartment in New York City has never been easy, and with recent legislative changes, the process is evolving. Under the new Fairness in Apartment Rental Expenses (FARE) Act, the days of renters routinely footing the bill for broker fees without having chosen to work with a broker are over. If a landlord hires a broker to represent their interests, the landlord must cover that fee.

However, if you, as the renter, choose to hire a broker to represent your interests, you may still be responsible for their fee. Our updated calculator below helps you estimate any potential broker costs you might face under the new rules, so you can better budget and make informed decisions as you navigate the NYC rental market.

$36,000

Annual rent

$2,700

Commission amount

$3,000

1 month (8.33%)

$4,500

1½ month (12.5%)

ELIKA New York: Real Estate Calculators

How Much is a Broker Fee in NYC?

Broker fees in New York City have recently changed. Traditionally, renters paid one month or up to 15% of the first year’s annual rent as a broker commission, especially in competitive markets like Manhattan.

However, with shifting market dynamics and greater transparency, the typical broker fee has now been reduced to around 7.5% of the first year’s annual rent, but only when you, the renter, choose to engage a broker for your representation.

For example, if you’re renting an apartment at $3,500 per month:

Annual rent = $42,000
Broker fee = 7.5% of $42,000 = $3,150

While some premium rentals may vary, this new standard provides a more manageable fee structure and helps renters better plan their budgets before signing a lease.

Why Pay a Broker Fee?

In today’s market, you only pay a broker fee if you hire a tenant’s broker to help you find the best apartment. Your broker works solely for you, representing your interests, not the landlord’s. They’ll help you identify quality listings, avoid overpriced or problematic units, and guide you through searching to signing.

Historically, New Yorkers often paid one month’s rent or up to 15% of the first year’s rent in broker fees, regardless of who hired the broker. But under today’s standards, tenant-paid broker fees have generally been reduced to 7.5% of the first year’s annual rent, and you only pay that fee if you’ve chosen to work with a tenant’s agent.

When You Don’t Pay a Broker Fee

If a landlord hires a broker to market their listing, they are responsible for paying the fee, not you. These listings are commonly advertised as “No Fee” apartments. You’ll often find them in larger rental buildings, less competitive neighborhoods, or during slower market periods.

There are a few reasons a landlord might cover the fee:

They want to fill a vacancy quickly.
The apartment has been sitting too long.
They’re competing with other listings in the same building or area.

However, be cautious: in many “no-fee” listings, the broker’s fee is baked into a higher rent, meaning you may pay more over time. Always compare long-term cost scenarios before assuming you’re getting a deal.

Finding an Apartment Without a Broker

If you’re up for it, you can try searching independently, starting with online listings or visiting leasing offices in larger rental buildings. Just keep in mind:

Many listings still come with an agent attached.
Without an experienced broker, you’ll need to do the screening, scheduling, negotiating, and paperwork yourself.
The best apartments often go fast, sometimes before they’re even listed publicly.

Hiring a broker can save you significant time, hassle, and risk, especially in a competitive market or if you’re unfamiliar with NYC’s quirks.