Renting an apartment can be just as confusing, if not more confusing, than finding a house to buy. The key is always hiring an experienced real estate agent who knows the market and can help you maneuver it. Understanding all the terminology, like fee vs. no-fee apartments, can also be helpful.

What is an apartment broker's fee?

While you may have experience renting an apartment by calling or driving by a local apartment complex, many large cities have real estate agents that facilitate apartment rentals instead. Agents may specialize in a specific niche neighborhood, in luxury apartment rentals, or in micro-apartments. 

These types of rentals typically involve a broker's fee or an apartment broker's fee. The fee varies throughout the country but is typically between one month's rent and up to 15 percent of the annual lease. 

Who is the broker's fee paid to?

The broker's fee is split between the landlord's listing agent and the renter's real estate agent. 

Who pays the broker's fee?

It depends. Sometimes the broker's fee is paid for by the potential renter as part of their move-in costs and as payment for the assistance in finding a great apartment. Sometimes the landlord may offer to pay.

How can you avoid rental listings with fees?

If funds are tight, you can ask your agent to look for no-fee apartment listings. This simply means that there is no fee involved in the rental process because the landlord offered to pay the broker's fee in order to get the apartment rented quickly. Landlords may do this in a slow rental market, to pre-rent a newly constructed building quickly, or even to fill multiple vacant apartments in an existing building.

Are rental fees negotiable?

Sometimes renting a no-fee apartment is not an option. As a potential tenant, you can try to negotiate the broker's fees with the landlord in exchange for a longer lease, like 24 months or longer. Believe it or not, tenant turnover every 12 months can get expensive for a landlord. Experts state that it can cost up to $5,000 per move out. Committing to stay for longer is only saving your landlord money in the future.

Whether you pay broker's fees or find a great no-fee apartment, having an experienced real estate agent guide you through the process and negotiate for you is essential to navigating the rental market. Look for no-fee apartment rentals in your area. 

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