Expensive NYC broker fees are a downfall to renting in our beloved metropolis, but now they’ll be a thing of the past — at least for potential tenants.
According to the Fairness in Apartment Rental Expenses Act (FARE) from Council member Chi Ossé, the payment responsibility will fall on those who are hiring the broker, which is most likely the landlord.
Legislation states, “This bill would require an individual who is a representative or an agent of a property owner or a prospective tenant in a residential rental real estate transaction to collect fees charged in the transaction from the party employing the individual. The provisions of this bill would not impact the collection of fees by a landlord or property owner.”
And according to a video from Councilman Ossé on Wednesday, October 23rd, the FARE act will pass on Wednesday, November 13th. Much to renters’ delight, it did! It is slated to take effect in June 2025.
“Forced broker fees in New York City are dead in three weeks,” he said on X, formerly known as Twitter. “I wrote this bill over a year ago, and I’ve been fighting with the real estate lobby ever since. They’ve had unlimited financial resources to fight against us.”
Considering it’s believed that NYC rents are rising seven times faster than wages and less than 5% of NYC rents are affordable for the city’s average salary, this is a welcome measure.
“We just voted to kill forced broker fees in New York City,” Council member Chi Ossé said on Instagram on November 13th. “Tenants are done paying fees to brokers they never wanted, nor hired, for apartments they found themselves.”
But not everyone was pleased to hear this news: The Real Estate Board of New York (REBNY) joined forces with brokerages and landlords to file a lawsuit on Monday, December 16th to stop the law from going into effect. The argument is that the law “infringes upon constitutional guarantees of free speech and contract rights” and won’t allow for brokers to set up listings without the green light from a landlord.
Time will tell how it all unravels, and we’ll be sure to keep you posted.
Should you be interested, we spoke to experts about five tips to winning a NYC affordable housing lottery, like the Madison Avenue affordable housing lottery that boasts $600 rents and the Gowanus affordable housing lottery with rents starting at $800.