Is 15% of the first year’s rent the standard broker fee for a rental apartment?

Technically, there is no “standard” broker fee for rental transactions.  15% is generally the maximum that an agent will charge for his or her services and tends to be a starting point for negotiation, when there is no other broker involved in the deal (i.e. a co-broker or one who represents the landlord).

Broker fees in New York are negotiable by law, which applies to both parties (you and the agent).  As a result, prior to working with an agent, it is smart to determine the broker fee upfront so that there are no surprises down the road.  If an agent demands 15% and you are not willing to pay it, you can move on from the start and not waste your time.

Note: There is one exception where 15% tends to be a required broker fee for most transactions: a deal involving a co-broke between two agents.  This is usually a case where one agent has an exclusive on a rental listing (rental building, condo or co-op) and another agent delivers their client as the future tenant.  Therefore, both agents are involved in the transaction (one representing the landlord and one representing the tenant) and require a minimum fee of 7.5% (50/50 split of 15%).