Manhattan is still one of the only markets in the entire United States where a tenant sometimes has to pay a broker fee.  Before Craigslist became so popular it was a very difficult process for a tenant to find an apartment without paying a broker fee.

Craigslist has provided tenants the ability to search various listings and make direct contact with landlords and management companies without having to pay a broker to gain access to their exclusive inventory.

Is that the end of real estate brokers for Manhattan Rentals?   Hardly…

The best part about the shift in the market place is that it has forced the brokerage community and many landlords to adapt.  This in addition to the poor economy and softer rental market has caused many Manhattan Landlords to start paying the real estate broker’s fees as an incentive to bring them tenants.  Landlords in the financial district of New York like Rockrose Properties have been paying the brokers fee for years.

Just today I searched for 2 bedroom apartments on Murray Hill and the Upper East side which historically were very competitive and almost never offered to pay a fee to a rental broker.  I was able to find 22 apartments in my client’s price range including luxury doorman buildings that are corporately owned, small walkups, and even a few privately owned coops listed through real estate brokers.

This is a great convenience for tenants

You may ask,  if the apartments are available on craigslist why would someone still use a broker?

Manhattan is still a fast moving market with hundreds of listings coming on and off the market daily.  Tenants can utilize a real estate broker’s experience and expertise to drastically reduce their search time to find what they are looking for.

A broker who has experience in a neighborhood will help guide a tenant through the many buildings available in Manhattan.  A good broker after showing 1-2 buildings at most will be able to get enough feedback to tailor the future search to units that are a good fit for the perspective tenant.

In conclusion, Craigslist has been a great benefit to the real estate business in a number of ways.  It has provided more inforamtion to the tenant to make an educated decision and has also allowed the real estate agent and tenant to work together saving the tenant money and finding an available apartment.