Cutting broker incentives in half

From the February issue: During the worst depths of the real estate downturn, many Manhattan landlords paid brokers’ fees — usually the equivalent of a month’s rent — rather than asking tenants to pay them. That way, owners could quickly fill vacant units by advertising “No Fee” apartments.

But now that practice — known as an OP for “owner paid” — is being replaced. Instead, landlords are paying brokers a commission equal to only half a month’s rent, in a sign of the rental market’s recent strength, brokers said. [more]