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EDDIE LANDSBERG
  • FRONT PAGE
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    • Super Deals! (under $300k)
    • Condos & Co-ops / under 700k
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What's the deal with "No Fee" apartments in New York?

When searching for an apartment in New York City, many renters come across listings advertised as "no fee" rentals. These rentals do not require the tenant to pay a broker's fee making the tenants think that they are saving a lot of money; however, there's often a catch: they're listed using the Net Effective, not gross rent, making them look much cheaper than they are in the short term.

Here's how it works:

Net effective rent is calculated by taking the actual rent, and then subtracting any "concessions" the landlord or management company is offering and rolling them into the remaining rent.  In other words, NER means, "Sure, the rent is x, but with the discount, it's as if you were paying y!"

For example, if an apartment has a gross rent of $3000 per month and the landlord is offering a free month of rent, the net effective might be advertised as $2750.  

3000 x 11 / 12

Again, you get one free month of rent, then pay $2750 + $250 eleven times.. hence the free rent is "made up" over the 11 months to follow.  

The advantage is that you likely get to pay less front money, but the disadvantage is that you think you're getting a $2750 a month apartment, when you're really getting a $3,000 a month apartment, meaning all fees, deposits as well as rent increases in the second year are going to be based on the gross rent ($3,000) not the Net Effective Rent.

If the apartment is worth $3,000, you got yourself a deal.  But if it's a an apartment that caught your eye because it looked reasonably priced at $2750, you may have been better off finding a $2750 apartment worth $2750 and just paying the broker fee, saving on both the front money, and possibly STILL paying under $3,000 in the second year when the rent might go up around 3% (or more) unless it's a rent stabilized apartment.
​
It's all about doing the math.

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NER -> Gross Rent Calculator

Gross Rent Calculator

Please enter the advertised NER (net effective rent):

Please enter the number of months of free rent:

*This calculator is based on a 1 year lease term.
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Fair Housing Notice
​Fair Housing Notice
Keller Williams NYC
​Edward Paul Landsberg
License # 10401370067​
licensed Real Estate Salesperson​

​
 Krieger Real Estate
146 Sullivan Street #23
New York, NY 10012
(484) 460-2668

This site is copyrighted eddielandsberg.com 2001-2023 and beyond.

This website is owned and operated by Edward Landsberg doing business as Eddie Landsberg.   I am a Licensed Real Estate Sales Person affiliated with Krieger Real Estate.   The website is a third party website. I am fully responsible for its content.  
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The information on this site is presented as general information and for marketing purposes only and does not constitute  personal or professional advice.  Please refer to DISCLAIMER and Terms of Service.

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  • FRONT PAGE
    • New York City Listings Page (Rentals)
  • BIO
    • BIO as Real Estate Agent
    • BIO as Musican
    • Let's Search Together!
  • BROKER LINK
  • RENTER EDUCATION
    • Apartment Hunting On A Budget
    • Filling Out A Rental Application
    • How Guarantors Work
    • Proving Income if you are Self Employed >
      • Apartment Hunting for Actors, Artists and Musicians
    • Can international students rent apartments in NYC?
    • Can the landlord raise my rent?
    • Can foreign nationals rent apartments in New York City?
    • QUESTIONS ABOUT RENTING APARTMENTS IN NYC
  • SELLING/BUYING
    • Super Deals! (under $300k)
    • Condos & Co-ops / under 700k
    • Condos & Co-ops / Over $700k
    • Houses / Multi-family / Townhouses
    • All Properties (over 1.5M)
    • Eddie on City Snap
    • What's my house worth?
  • Featured Listings
    • RentHop
    • StreetEasy
  • LANDLORDS
  • 日本語
    • ニューヨーク市の賃貸物件
    • プロフィール
  • RENTALS BY BEDS
    • 0-1 BEDS by PRICE
    • 0-1 BEDS by RECENCY
    • 2 BEDS by PRICE
    • 2 BEDS by RECENCY
    • 3 BEDS by PRICE
    • 3 BEDS by RECENCY
    • 4 or more BEDS by PRICE
    • 4 or more BEDS by RECENCY
  • Pet Friendly Apartments
    • most recent
    • by price
  • Amenities
    • Search by Amenities
    • Elevator Only
    • Laundry In Building
    • Laundry in Unit / Dishwasher
    • Rentals with Swimming Pool
    • FURNISHED APARTMENTS >
      • most recent
      • by price
      • Roommate and Room Share Friendly
  • RENTALS BY NEIGHBORHOOD
    • Moving to New York City
    • MAP VIEW
    • DRAWING TOOL
    • Search by Neighborhood & Zip (Manhattan)
    • Popular Neighborhoods in NYC >
      • Long Island City (QUEENS)
      • Unbeatable Deals: Blocks from Central Park
      • Affordable Deals in the Financial District
      • Upper East Side Bargains and Deals
      • Latest on Market in Bushwick
      • Midtown Manhattan Rentals
      • Specials in Soho
      • CHELSEA awaits you
      • Astoria is Hot and Cooking!
      • Best of the Village
      • Washington / Inwood: The Very Best of Upper Manhattan
      • Upper West Side Living
      • Best Deals in Harlem
  • Search by Budget
  • Resources / Documents
    • 3D Viewings and Virtual Tours
    • How to DocuSign
    • Rent Calculators >
      • Gross Rent Calculator
      • Rent Pre-Qualification Calculator
      • Money Due at Lease Signing Estimator
      • Rent Increase Calculator
      • Rent Burden Calculator
      • Cheaper to Buy or Rent?
    • Lease Assignment
    • Monthly Budget Sheet
    • NYC Real Estate Market Reports
    • Tenant Rights and Disputes
  • FAIR HOUSING NOTICE