Landlords can no longer tack on thousands of dollars in fees to new tenants to pay brokers who show rental units.
New York City landlords will be barred from passing on broker’s fees to their tenants after a new bill passed the city council with 42 of 51 votes, reports Clio Chang in Curbed.
“The FARE (Fairness in Apartment Rentals) Act, which was first introduced by Chi Ossé in 2023, states that a landlord has to pay the fee for a broker who lists a unit for them and that brokers and landlords have to disclose any other fees to tenants up front.” According to Chang, New York is one of the few cities that lets landlords charge tenants for brokers that show rental properties, fees that can be 15 percent or more of rent and amount to thousands of dollars in added up-front fees for renters.
While critics of the bill expressed concerns about landlords raising rents to make up for the loss, they wouldn’t be allowed to do so in rent-controlled apartments, which amount to almost half of the city’s rental stock.
Read the full story: Good-bye to the Broker Fee
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