Brooklyn City Council Member Chi Ossé in June introduced legislation aiming to lessen the financial burden of broker fees on renters by changing who pays certain fees.
The Fairness in Apartment Rental Expenses (FARE) Act would not restrict broker fees, which are not capped in New York City and often run in the thousands of dollars. Instead, it would require that when signing a new lease, the broker fee be paid by the party who hired the broker, typically a landlord
Ossé, who represents Crown Heights and Bedford-Stuyvesant, said his bill is “common sense,” and is an attempt to mitigate the housing affordability crisis in the city.
New Yorkers often use brokers to find and fill apartments and can often pay a fee as much as 20% of their annual rent. Oftentimes, tenants pay the fee prior to moving into their apartment.
The real estate industry is largely opposed. The Real Estate Board of New York has already tried to block it, in fact, claiming it would harm a broker’s ability to earn commission and raise rents for tenants. Some brokers have also worried that the fees falling to landlords would dissuade them from even seeking a broker.
