News Room
New York Post

BROKER BREAK FOR APT. HUNTERS

By RICHARD WILNER

Tired of forking over thousands of dollars to real estate brokers in exchange for their help in getting an apartment?

Two New York businessmen are, and they're exacting their revenge - they've started a Web site listing no-fee rentals in the city.

"When I was looking for my first Manhattan apartment, I was shocked to hear so many people complain about having to pay high broker fees because of having no other choice," said Paul Salamanca, 25, an entrepreneur, who recently started SkipBrokers.com.

The site, which aggregates apartment-vacancy information from about 50 management companies throughout the city and updates daily, is charging apartment hunters an introductory rate of just $19.99 to get a copy of the list.

SkipBrokers joins a fast-growing field of sites claiming to help desperate folks avoid paying from one-month's rent to 20 percent of the first year's rent to a broker.

Other sites, such as Rent-Direct.com ($150) and NoFeeRentals.com ($195) offer similar services but charge more than Salamanca's start-up.

For New Yorkers hitting the apartment-hunting trail, the competition created by the heated competition in the city's brutal housing market is a good thing.

It'll save you money.

NEW YORK POST is a registered trademark of NYP Holdings, Inc. NYPOST.COM, NYPOSTONLINE.COM, and
NEWYORKPOST.COM
are trademarks of NYP Holdings, Inc.
Copyright 2005 NYP Holdings, Inc. All rights reserved.


Time Out-New York


Another route to no-fee apartments is via books and web-sites that help prospective renters contact building-management companies and landlords directly. Newcomer Skipbrokers.com, launched in January, offers a $30 downloadable guide to finding no-fee properties. "It’s a Zagat of Manhattan management companies," cofounder Paul Salamanca says. A trip to the bookstore will yield similar offerings, like The Nouveau Native’s No Fee New York 2006 ($24). The downside to this DIY approach, though, is the time it takes to find an open apartment. No one has yet done a good job of auto-mating the method, which is a labor-intensive process involving lots of calls that lead nowhere. So you’ll want to start at least a month or two ahead of an expected move.

On the verge: Sunset Park
Where: South of Park Slope and north of Bay Ridge in Brooklyn
How much: 1BRs from $1,100
Why: The real-estate maxim of "follow the gay people"applies dramatically to the evolving Sunset Park. Rainbow flags dot neighborhood windows, part of the migration from gay-friendly Windsor Terrace, just across Green-Wood Cemetery (Sunset Park also hosts a thriving Chinese community). The stock is mostly family houses and brownstones; as such, there aren’t many studios to be had. Manhattan is a fairly convenient ride away on the N/R line.
On the market (pictured): 2BR on 40th Street between Sixth and Seventh Avenues; $1,550 (corcoran.com)
 
In the meantime, Craig Newmark isn’t idly standing by. The Craigslist creator is changing the way his organization handles rental listings by charging a $10 fee for each ad (the new policy does not include "seeking a roommate"–type postings). By asking for money, Newmark hopes he’ll drive out the dishonest brokers who spam the boards. "We suffer some of the same problems everyone does—bait and switch," he says, explaining that a respondent might inquire about a $1,000-a-month apartment, only to be told that it’s gone—though more expensive units are still available. "I’m trying to get rid of them, and I hope charging will help." The change could be made as soon as a few weeks from now.
Another source of no-fee deals is new rental developments that offer incentives, such as waiving the first month’s rent. But with most developers ogling the more lucrative—for the moment, anyway—purchase market, the supply of incentive-laden new rentals has all but dried up. "Incentives now are offered mostly on apartments that tend not to be as desirable," says Halstead’s Ahmetovic.
Exceptions do exist, though they come and go rapidly. River Place, a new development on far West 42nd Street, is offering a month sans rent to newcomers. (Bonus: The building has its own putting green and operates a shuttle bus that runs east along 42nd Street to Lexington Avenue.) The Biltmore, a new development on far West 47th Street, offers no-fee rentals and promises "upcoming specials" on thebiltmoreny.com One broker said that Hampton Court, on East 102nd Street, opened in fall 2004 as the “first luxury rental development above 100th Street,” will be allowing some financial concessions (one-bedrooms rent for between $2,100 and $2,300). And for those bold enough to commute via tram, a new development called the Octagon opened this month on Roosevelt Island. The landlord is offering a free month’s rent, and claims to have “rents of up to 20 percent less than Manhattan prices” (studios start at $1,570; one-bedrooms start at $1,710).
All-inclusive buildings like the Octagon—which boasts an under-ground parking lot, a swimming pool, tennis courts, a fitness center, a screening room, a day-care facility and “warp-speed Internet access”—also present another way to do your rental math. If you spend a lot on the gym and other costly habits, it could very well save you money in the long run to shell out a higher rent for a building that will eliminate other lifestyle expenses.


FINDERS KEEPERS
By SARA LIEBERMAN
I am the casualty of a cohabitation breakup.

After year one of a two-year lease, hearts were broken, boxes were packed and penalty fees were paid.

To make matters worse, I knew my criteria for a new place were demanding: Studio/1-BR, lots of light, reasonable closet space, full-size refrigerator, for $1,700. In the covetedWestVillage. With no broker's fee.

I'd found three previous Village rentals without a broker and refused to believe I couldn't do it again. But it didn't take long to realize the difficulty of my task, considering one listing touted a hot plate as part of a $2,150 Perry Street studio's "recently renovated kitchen."

So, instead of taking something I didn't want (or couldn't afford), I moved back toLong Islandto live with my parents for the summer.

After resuming my search in the fall, I succeeded in finding my little piece ofWestVillageno-fee heaven after scouring the otherwise hellish market for just three weeks. I offer these tips so you can learn from my mistakes - and my success.

Consider upping

your price range

During my initial search, the listings I found in my desired price range and neighborhood were all brokered apartments and insultingly tiny. Like, shower-in-the-kitchen, closet-in-the-bathroom tiny.

I decided I would up my price range a bit if necessary to avoid a home the size of a small conference room and settling for a broker. I just couldn't rationalize paying someone just to show up and put a key in the door. Tolerating higher rent to avoid a broker's fee is also great for those unsure of where they'll be in a year. Instead of paying a big lump sum up-front for an apartment you might not renew, you'll split your costs over 12 months.

Go straight

to the source

You can download a comprehensive online listing of management companies with information about the buildings they own and how to inquire about availability. (Skipbrokers.com, which charges you a one-time fee of $120, is one option.) Update: SkipBrokers.com is now a free site.

I had a similar (though older) list on hand - it's how my ex and I found our posh lowerFifth Avenueone-bedroom - so I began highlighting all the companies with buildings in the Village and spent my lunch hours calling them.

Most of the leasing agents suggested I check their frequently updated Web sites for new openings, so I bookmarked a bunch and did so daily. The posts that fit my criteria only came up about three to four times a month, depending on the company and how many buildings they owned. So yes, still pretty silm pickin's.

But every so often I'd see an apartment and laugh to myself when some other apartment hunter showed up with his or her broker. Knowing I found the place on my own was so satisfying.

Think (and search) outside the box

Walk around your desired neighborhood toward the end of the month. I made it a point to peer into windows, look for rental signs and check the sidewalks for furniture, excess trash and other clues that suggest someone is moving out.

I stumbled upon people moving a few times, which tipped me off to openings. Of course, while this is a great tactic, it'll still be questionable whether the vacancy is in your budget, let alone the right size. But you can at least ask the former tenant for information on the management company. Who knows what else may be opening up in that building or in another nearby?

Know when it's too good to be true

Most quality listings I found online were beyond my budget by at least $300 and usually involved a fee. But then I'd come across something like "Quaint, exposed brick studio on Bank! $1,650," which brought me the site for Innovative Apartments - where for a one-time fee of $175 (much cheaper than any broker's fee), I could get a ready-to-submit credit check and access to "exclusive" management company listings.

But while the company's Craigslist posts advertised "1br on Perry!" and "Large studio on Jane!" none of the apartments I was interested in were available after I paid for the service. Aggravated, I asked for a refund. My agent gladly deactivated my membership but said I'd have speak to the finance department about the refund.

After several unreturned phone calls, I got them to cut me a check. It bounced. I saw another interesting Craigslist post of theirs and, desperate to find my dream apartment, asked to have my account reactivated. After that listing didn't pan out, I threatened to call the Better Business Bureau. Weeks of more frustration ensued, but I finally got my refund.

And while I felt like a sucker, the persistence I used to get my money back was the same persistence I used to find my apartment.

Make a new friend

Even in our Web-obsessed culture, nothing beats actually talking to and forming a relationship with someone who can help you. I started gently pestering a leasing agent, whose management company had several great buildings in the neighborhood, including the one I lived in with my ex. And when I say "gently," I mean making her my new best friend and calling once a week.

Every time we spoke, she reminded me to check her company's Web site, but I wanted the scoop before she posted it. After seeing a few close-but-not-quite-right apartments with her company, we had developed a good relationship. In fact, there was one point where I had her calling me!

And that's how I found my top-notch new apartment. When we sat down to sign the lease, she said she usually never calls a client but got the sense I wouldn't lay off until she found me something.

And so here I am in my fabulous fifth-floor studio in theWestVillage, with natural light, good closet space, a real kitchen, lots of charm and - most important - all within my price range, but without a broker's fee!

Q: I can't afford a broker's fee. What else can I do?

A: The typical broker's fee runs about 15 percent of the yearly rent. That's a few thousand bucks to most of us. But you have options. "That was the real reason we did the site," says Mike Jacobs, co-founder of UrbanSherpaNY.com, which has a huge number of no-fee listings throughoutManhattan(Brooklynis on the way). Also, "if you're interested in a particular neighborhood, take the time out of your day and walk through it," says the other co-founder, Peter Hungerford. "Doormen are excellent sources of information." Your final option is to negotiate with your broker (tell them you just can't afford 15 percent - maybe 10). Some brokers, particularly outer-borough ones, will say OK. The only thing you can lose is your pride.

Q:There are roaches all over my kitchen! Isn't it my landlord's job to call an exterminator?

A: You bet. All tenants have a right to a vermin-free space. "Warrant of habitability" means you're entitled to a livable, safe and sanitary apartment. So if you see any bugs, call the landlord ASAP. Kevin Denison, a 29-year-old graphic designer called his landlord, who refused to do anything. "I called an exterminator and withheld the amount I spent from my rent,"Denisonsays. This doesn't mean if you see one or two bugs you can start deducting rent. But if we're talking a major infestation - and the landlord thumbs his nose at you - this falls under the city's "repair and deduct" laws. But write your landlord first to prove you made the effort and save all exterminator receipts.