No Fee? No More?

The end of the no fee season is back upon us. There has been a major shift in the rental market here. With rents rising once again, owners and managements paying a month's rent towards the broker's fee are few and far between. Properties with solid location are in short supply and the demand is high. If you are looking for a "no fee" apartment in this city over the next two months, you may as well go and take the course for your real estate license. At least then, you will have access to the proper databases to search efficiently. Properly priced apartments are renting within a day of hitting the market, if they even make it to the market right now!

The one month "OP" (owner paid) commission rate is going to be a last resort for properties that are not renovated, in fringe areas or are sitting on the market for too long for various other reasons. The best priced, good quality, spacious and prime location properties will be offered and able to be secured through a broker in this market. I have seen this trend for the past five years with the rental market here. Usually this happens earlier in the year around the spring rush. The fact that it is happening so late in the rental season this year, indicates that this may be a cold winter for renters. Traditionally, this is the time of year where the "OP's" begin to appear. To see them disappearing is a sign that the "no fee" market may be crashing for a long period.

The Fall of the Wall?

Here in NYC, we live in a housing market that already has low supply and high demand. Thereforre the rents are above average when compared to the rest of the country. To offset this and find a way to reap the benefits of living in Manhattan, many renters when looking for doorman buildings, have resorted to putting up temporary pressurized walls to create second or third bedrooms. This makes a $3500 one bedroom now affordable for two young professionals who can really only afford $1700 per month in rent.

This will soon be a thing of the past. This year, many landlords are no longer allowing walls to be erected and many are even going so far as to having existing walls removed. What many are being told, which is in compliance with a Department of Buildings code, is that they can only put up a partition or shelving unit which results in obviously, less privacy. The effect of this is massive, as many new tenants in the city rely on doorman buildings for the obvious benefits of security, as well as the convenience of on site staff for everything from repairs to package/dry cleaning reception. Few are the new hires who can come right out of college and afford a $3500 one bedroom at 40 times the monthly rent on thier own.

Many renters are now being forced to consider other areas of the city such as Washington Heights, Harlem, Long Island City and Brooklyn in order to get the same luxury at a more affordable price. The old "boundaries" of what was once deemed a safe area to live are being pushed further and further outwards and upwards with each week.