If you live in a large city, you may see apartments listed as fee, low-fee, or no-fee apartments. In large housing markets, many apartments are controlled by brokers. This means that in order to even see an apartment, you must go through a broker, who will show you around and answer your questions. You do not deal directly with the landlord until you sign the lease, and when you do, you must pay the broker a “finder’s fee.”
Fee
These apartments are shown by brokers who charge a traditional fee amount, which you pay only if you sign the lease and which can range from an equivalent of one month’s rent (a little over 8% of the yearly rent) all the way up to 15% of the yearly rent.
Low-Fee
Low-fee apartments are shown by brokers who charge a fee lower than the traditional broker’s rate. This fee is paid by you upon the signing of the lease.
No Fee
These apartments require no finder’s fee, either because you deal directly with the landlord or, more commonly, because the management company pays the broker’s fee. So, technically, there is a fee involved, but you do not have to pay it.
