Realty Bites

Do I have to pay a broker fee to sublet a NYC apartment?

  • It’s rare to be asked for a fee for a sublease, and you can always try to negotiate
  • You’ll be expected to leave the unit if the primary tenant plans to return
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By Celia Young  |
October 30, 2024 - 10:00AM
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You may be asked for a broker fee when subletting in a condo or co-op, or when a broker is involved in finding a new subtenant.

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I found a beautiful apartment in Brooklyn that I would love to sublease. But I was surprised to find out that there was an agent showing the apartment, who asked for a broker fee, which I also found odd. I’ve never had to pay a fee before when subleasing before. What gives?

It’s not common for a renter to pay a broker fee when subletting an apartment in New York City, but it can happen. Whether or not you should pay it likely depends on whether a sublet really suits your needs.

In a sublet situation, usually the primary tenant finds someone to rent the unit and the subletter avoids dealing with an agent. But if the leaseholder needs to relocate quickly or simply doesn't have the time to find a subtenant, they may contact a broker to rent out their place. (Otherwise, the primary tenant is stuck paying the rent.)

“A lot of people try to do it on their own and then realize it’s a lot more complicated,” said Douglas Wagner, director of brokerage services at BOND New York. “Time is money in a situation like this, and having a broker expedite the whole process is a great benefit.”


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Where to expect fees on a sublet

If you’re renting from an owner or shareholder in a condo or co-op, it’s more likely you’ll encounter a broker, because the application process is more complicated, said Adjina Dekidjiev, broker at Coldwell Banker Warburg. 

“There’s a lot more involved,” Dekidjiev said. “You have to do basically a condo package application. It’s not just that you call them up and send them your proof of income and assets.”

A broker may ask for a fee for a sublet in a smaller building where the owner does not cover the broker fee, said Allan Zapadinsky, a broker at Keller Williams NYC. 

In that scenario, it likely means the owner is insisting all subtenants work with "their broker."

When there’s a lot of competition for apartments, the sublessee (in this case, you) can get stuck footing the bill for the broker, although you can always try to negotiate a lower fee. In NYC, there’s no obligation for the person who hires the broker to pay for their services, however a city council bill up for vote on Nov. 13th would make the person who engages the broker responsible for their fee.

Find out about the fee ahead of time

A broker should always inform a tenant about fees, and whether the unit is a traditional rental or a sublet, Wagner added. Subleasing a space likely means you’ll have to leave when the primary tenant moves back, usually in less than 12 months. 

As a result, that broker fee should be lower than the traditional fee of 12 to 15 percent of the annual rent, Wagner said. 

“Most of the commissions are based on that shorter period of time,” Wagner said. “They’re not based on the 15 percent of the annual lease like you would if you were getting a 12-month or longer” lease.

You can also try to negotiate a lower fee with the broker. But it’s worth asking yourself whether the apartment is worth the added cost, given that you’ll only live there for a limited period if the primary tenant plans on returning.

Celia Young Headshot

Celia Young

Senior Writer

Celia Young is a senior writer at Brick Underground where she covers New York City residential real estate. She graduated from Brandeis University and previously covered local business at the Milwaukee Business Journal, entertainment at Madison Magazine, and commercial real estate at Commercial Observer. She currently resides in Brooklyn.

Brick Underground articles occasionally include the expertise of, or information about, advertising partners when relevant to the story. We will never promote an advertiser's product without making the relationship clear to our readers.

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