New York City is poised to make significant changes to its rental market as the City Council votes on a revised bill requiring landlords to pay broker fees, not tenants. The Fairness in Apartment Rentals Act aims to increase affordability and reduce costs for renters.
Under the current system, tenants typically pay 10-15% of the annual rent to brokers who help them find apartments. However, the new bill would shift this responsibility to landlords, who would absorb the cost of broker fees. This change could lead to higher rents on market-rate apartments as landlords pass on the fee to tenants.
Advocates for renters argue that this shift is necessary to reduce costs and make apartment hunting more affordable. They also point out that this change would allow tenants to negotiate with landlords over fees or opt for no-fee listings, giving them more control over their housing search.
Opponents of the bill, including real estate groups and brokers, argue that the fee covers ongoing services and should be paid by the tenant who benefits from these services. They also claim that this change would make apartment hunting more difficult and limit access to listings on websites like StreetEasy and Zillow.
The bill has already gained support from several tenant advocacy groups, including the Legal Aid Society and Make the Road New York. Mayor Eric Adams expressed concerns about the impact on small property owners but acknowledged the need for cost deferral measures.
This change marks a significant shift in the NYC rental market and could have far-reaching implications for tenants and landlords alike. As the City Council votes on this bill, it remains to be seen whether it will become law and how it will affect apartment hunting in the city.
Source: https://www.thecity.nyc/2024/11/12/brokers-fees-council-vote-housing-rent-fare-act