As the Zillow Group Inc. (Z) launches its latest plan to make money from the thousands of real estate rental listings on websites that cater to the New York City market, one of the biggest real estate brokers in the area has decided pass along the fees to its agents for listings rental properties on the Seattle, Wash.-based online real estate database company.
Pamela Liebman, president and chief executive officer of The Corcoran Group, which is owned by Realogy Holdings Corp. (RLGY) , told The Real Deal that the firm has ceased sending its rental listings to StreetEasy.com, one of Zillow's websites. Liebman also noted that Citi Habitats, which Corcoran bought in 2004, has done the same.
A Zillow spokesperson disputed that, however, saying that both firms are still sending the rental listings.
The Corcoran Group did not respond to multiple requests for comment, nor did Realogy's franchise group, Sotheby's International Realty, which also posts property listings in the New York City market. There is at least one rental listing from Sotheby's on StreetEasy.
On Tuesday, Zillow sites, including StreetEasy.com, Zillow.com, Hotpads.com and Trulia.com, began charging agents a $3 a day fee for each New York City rental listing. The Wall Street Journal reported on Thursday that rental listings on StreetEasy plunged by 55% the first day, but rebounded on Wednesday. A quick search of StreetEasy for apartments to rent in New York City reveals more than 16,500 listings, which would equate to about $49,500 in fees per day.