Are there certain situations where I use a real estate agent to find a rental apartment, but the landlord pays the broker fee (no fee to me)?

Yes, but only under specific circumstances.  Similar to any other service provider, a real estate agent performs a service for the benefit of a consumer (client or landlord) and expects to get paid for his/her time and results.  The agent will receive a fee from one or both of only two parties usually, the client and/or the landlord.  Therefore, if the landlord is not offering to pay the broker fee, it is up to the client to cover it.

During the past few recessionary years, more mgmt cos / landlords offered to pay the broker fee for prospective tenants as an incentive for signing a 12+ month lease (called an “OP” or Owner Pays the fee).  However, as the rental market has strengthened, these incentives have dried up to a considerable extent and only a minority of owners are now willing to pay the fee.

If you plan to use a real estate agent to find an apartment rental, you can ask if he/she has any “no fee” apartment listings, but do not be surprised if there is limited to no supply.  Mgmt cos / landlords that may still pay the broker fee are either for new developments, buildings in inconvenient locations or high-vacancy buildings.

Thus, the bottom line is that if you enlist the services of a real estate agent, expect that there will be a good chance you have to pay some sort of broker fee to secure your next home.

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