RE tech startups think rental brokers are passé

"There are a couple ways that renters are getting screwed."

TRD New York /
Aug.August 17, 2016 09:40 AM

New tech startups are trying to cut out the middleman: New York City rental brokers.

Companies like Joinery, PadSpin and FlipLease have launched platforms that allow renters to sidestep broker fees, Bloomberg reported. Joinery, which launched last year, allows outgoing tenants to find their own replacements by posting a listing for the apartment directly to the company’s website.

The tenant who is leaving gets a 5 percent fee and Joinery receives a smaller one. The idea is to help renters avoid broker bait-and-switch tricks and exorbitant fees, which average in New York to roughly $5,600, said Julia Ramsey, co-founder of Joinery.

“There are a couple ways that renters are getting screwed,” Ramsey told Bloomberg. “The sheer amount you’re paying a broker is probably the biggest one.”

Another company, Loftey, acts as an intermediary between the landlord or broker and the tenant. Loftey gets a portion of the commission, then helps negotiate rental discounts or covers the price of moving. [Bloomberg]Kathryn Brenzel


Related Articles

arrow_forward_ios
Eric Gordon

Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world

Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world
Big Tech locations in NYC

MAP: Here’s a look at all the Big Tech locations in NYC

MAP: Here’s a look at all the Big Tech locations in NYC
What will proptech look like in 2019 and beyond?

What will proptech look like in 2019 and beyond?

What will proptech look like in 2019 and beyond?
States Title's Max Simkoff and The Real Deal's Hiten Samtani

The Interview: States Title’s Max Simkoff on reforming the murkiest corner of real estate

The Interview: States Title’s Max Simkoff on reforming the murkiest corner of real estate
Douglas Durst, One Five One, and Tik Tok CEO Kevin Mayer (Getty, Google Maps, iStock)

The biggest new tenant in New York City is… TikTok

The biggest new tenant in New York City is… TikTok
Amazon’s Alexa and Google Assistant will feed data reports to realtors via new voice app (Credit: Amazon, Google, iStock)

Staten Island MLS enlists Alexa, Google to feed data to Realtors

Staten Island MLS enlists Alexa, Google to feed data to Realtors
Airbnb CEO Brian Chesky (Photo by Stefanie Keenan/Getty Images for Airbnb)

Airbnb’s $1B fundraise comes with a hefty valuation cut

Airbnb’s $1B fundraise comes with a hefty valuation cut
Proptech and the pandemic TRD Talks Live

Proptech and the pandemic: Will coronavirus change how real estate works?

Proptech and the pandemic: Will coronavirus change how real estate works?
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...