Rental Fee Agreement

The Fee Agreement is designed to protect the broker from clients going behind their back and renting apartments without them. The client is asked to sign the Fee Agreement stating they will not rent any of the apartments you introduce them to, with another broker, or rent through the management company directly for at least 6 months. Be sure to give the client a copy of the Fee Agreement once the appointment is over.

Length x Width - Fee Agreement

Welcome to LENGTH X WIDTH (hereinafter “LXW”). We provide quality service and our agents are eager to assist you. By Signing below, you agree that you are seeking the rental of an apartment and that you are retaining the services of LXW for that purpose.

Unless otherwise stated below, should you rent an apartment within 6 months of being shown that property by LXW, the commission owed by you to LXW is Fifteen Percent (15%) of the first year’s annual rent (“Full Commission”). You and LXW agree that LXW shall be entitled to the entire Full Commission, payable to LENGTH X WIDTH LLC. In the form of certified funds, and due upon: (1) Your execution of a lease for an apartment in a building or complex LXW has shown you, OR (2) Your occupancy of an apartment in a building or complex LXW has shown you.

Additionally, your LXW salesperson may show you apartments for which you will NOT be liable to LXW for any commission should you rent those properties through LXW (“No Fee”).

Whether or not a property is “No Fee”, should you rent any apartment in a building or complex shown to you by LXW through the services of a broker other than LXW, or through the landlord directly, resulting in LXW not being compensated for your rental, you will be liable to LXW for the “Full Commission”.

• ½ Month’s rent for a rental up to 2 months.
• 1 Month’s rent for a rental of more than 2 months and up to 6 months.
• 15% of the total rent for a rental of more than 6 months.
• 15% of the first year’s annual rent for a rental of 1 year or more.

Brokerage Fees:

The standard brokerage fee in Manhattan is 15% of the annual rent and is generally due at the time of lease signing. You are only responsible for this fee if you secure an apartment through the broker who introduced you to the apartment / building. Fees should always be made payable to the brokerage firm and not an individual agent.

     The Formula for calculating the Broker Fee is as follows:

     Monthly Rent  X  12 Months = First Year Annual Rent  X  15% = Broker Fee

     $2,000  X  12 = $24,000  X  15% (.15) = $3,600

     Helpful Tip: 1 Month’s Rent is ALWAYS equal to 8.3% of the Annual Rent (1/12 = 8.3%)

FAIR HOUSING

In 2008, the New York City Council passed what may be the most liberal housing discrimination law in the country. It amended the New York City Human Rights Law to prohibit discrimination in the rental of units based upon a person's lawful "source of income." What this essentially means is that landlords and real estate agents cannot refuse to show and/or rent apartments to people just because they receive Section 8 benefits, unemployment, welfare benefits, and/or any other benefits. Moreover, one cannot have a different set of rental requirements for persons who receive such benefits.