Astoria lease takeover: management wants a processing fee plus a broker fee, with no broker anywhere
#1

Snagged a spot in Astoria last year, now my job's moving me out of the city this summer. I found a solid replacement myself (friend of a coworker, similar income, good credit). Management says a lease takeover is okay, but I have to pay a processing fee of a few hundred dollars, and the incoming tenant has to pay a broker fee equal to one month's rent.

Thing is, their leasing office didn't list the apartment, didn't screen him, didn't show it, didn't do anything except send the paperwork. Is this just how lease takeovers go now? Feels like double dipping, but maybe I'm out of the loop.

#2

Wait, this is exactly what I'm nervous about with my place in Dyker Heights. I thought a lease takeover meant you just switch names and maybe pay a credit check fee. Are processing fees actually legal? Also what's the difference between a takeover and a sublet? Sorry if that's a dumb question.

#3

Big difference, and it matters here.

In a sublet, you stay on the lease and the other person lives there. In an assignment or takeover, you're asking the landlord to release you and let the new person step into the lease. For a market-rate apartment, the landlord can generally charge a reasonable processing fee when they approve an assignment, but it should track actual out-of-pocket costs: running a credit check, reviewing the file, preparing a lease amendment, maybe using a third-party screening service. A few hundred dollars is on the steeper side, but not unusual. Ask for an itemized list.

The broker fee is shakier. If no licensed broker was involved and the leasing office is not performing brokerage services for the new tenant, calling it a broker fee is a reach. In New York, broker fees generally belong to licensed brokers for actual services. A managing agent can sometimes collect a fee if they have a licensed brokerage arm and they're actually acting as a broker, but just sending paperwork is not it. I'd ask them: what services are being provided for that fee, and who is the broker of record?

Caveat: rules vary with building type, rent regulation, and the original lease language. If you're rent-stabilized, the specifics can be different. If your lease already includes an assignment fee clause, that's their strongest argument. But one month's rent for zero work is worth pushing back on.

#4

Had a similar run-in in a bigger Astoria building. They tried to charge my replacement a broker fee, but when I asked for the broker's license number and a commission agreement, the whole thing disappeared. They'll fold if you ask the right way.

Also make sure the new tenant's application is actually processed. Half these fees are just them seeing if you'll pay.

#5

This drives me crazy! People mix up processing fees, application fees, and broker fees all the time. A processing fee is supposed to cover real work, not be a profit center. And if the management company isn't a licensed brokerage, they cannot just slap on a broker fee because it's their policy!!!

Have you tried asking for the name of the broker of record? Or the written fee disclosure? In New York, brokers are supposed to give a written disclosure of what the fee is and who they represent. If the leasing office can't produce that, it's a huge red flag!

Also, did your original lease say anything about an assignment fee? Sometimes the only thing they can point to is a vague clause. If the number isn't in there, make them justify every dollar.

#6

Honestly the one-month broker fee with no broker is a classic management company move. A buddy of mine in the EV got one dropped last winter after he emailed asking for the name and license number of the broker. No response, then a week later they waived it as a courtesy. They know most people won't push.

Request the itemized processing fee too. Don't eat it blindly.

#7

Appreciate the reality check. I pulled my lease and it does mention an assignment processing fee, but no number. The broker fee isn't mentioned anywhere. Management says it's their policy and the new tenant has to pay it directly to the leasing office.

Gonna ask for the broker disclosure and an itemized list of costs. Feels like they're just grabbing whatever they can before I leave.

#8

Good move, G. And make the new tenant fight the broker fee directly. If you're the one already leaving, you don't need to be the middleman for their junk fee. Inwood buildings try this all the time.

Tell the incoming tenant to ask for a written fee disclosure and the broker license number. If they can't produce one, don't pay. Sometimes the fee gets dropped right before the assignment deadline. Also check if there's a housing clinic or tenant group nearby; they'll help draft the email for free.

#9

Closing the loop: I asked for the broker disclosure and an itemized processing fee. The leasing office came back saying the broker fee is for administrative and marketing, but the licensing number field was blank. The processing fee is now suddenly reduced if I sign by Friday.

Told them I'm not signing anything until I see real docs. Will update if they cave. Thanks for the ammo, all.