Rental Fee Agreement
The Fee Agreement is designed to protect the broker from clients going behind their back and renting apartments without them. The client is asked to sign the Fee Agreement stating they will not rent any of the apartments you introduce them to, with another broker, or rent through the management company directly for at least 6 months. Be sure to give the client a copy of the Fee Agreement once the appointment is over.
Area New York - Fee Agreement
Welcome to AREA NEW YORK (hereinafter “AREA”). We provide quality service and our agents are eager to assist you. By Signing below, you agree that you are seeking the rental of an apartment and that you are retaining the services of AREA for that purpose.
Unless otherwise stated below, should you rent an apartment within 6 months of being shown that property by AREA, the commission owed by you to AREA is Fifteen Percent (15%) of the first year’s annual rent (“Full Commission”). You and AREA agree that AREA shall be entitled to the entire Full Commission, payable to AREA NEW YORK LLC. In the form of certified funds, and due upon: (1) Your execution of a lease for an apartment in a building or complex AREA has shown you, OR (2) Your occupancy of an apartment in a building or complex AREA has shown you.
Additionally, your AREA salesperson may show you apartments for which you will NOT be liable to AREA for any commission should you rent those properties through AREA (“No Fee”).
Whether or not a property is “No Fee”, should you rent any apartment in a building or complex shown to you by AREA through the services of a broker other than AREA, or through the landlord directly, resulting in AREA not being compensated for your rental, you will be liable to AREA for the “Full Commission”.
Brokerage Fees: The standard brokerage fee in Manhattan is 15% of the annual rent and is generally due at the time of lease signing. You are only responsible for this fee if you secure an apartment through the broker who introduced you to the apartment / building. Fees should always be made payable to the brokerage firm and not an individual agent.
The Formula for calculating the Broker Fee is as follows:
Monthly Rent X 12 Months = First Year Annual Rent X 15% = Broker Fee
$2,000 X 12 = $24,000 X 15% (.15) = $3,600
Helpful Tip: 1 Month’s Rent is ALWAYS equal to 8.3% of the Annual Rent (1/12 = 8.3%)