The New York City Council is gearing up to vote on a bill that could significantly ease the financial burden of renting in the city by addressing the issue of broker fees.
Currently, New York City renters often pay a substantial one-time fee to brokers hired by landlords to list apartments—amounting to roughly 15% of the annual rent, or about $5,400 for a $3,000-per-month apartment. The bill would require that only those who directly hire a broker pay their fee, potentially ending a longstanding challenge for tenants navigating the Big Apple’s rental market.
With 33 Council members already backing the proposal as of Tuesday, the measure is just shy of a veto-proof majority. Councilmember Chi Ossé from Brooklyn, the bill’s sponsor, has actively promoted it across social media, highlighting how it could benefit renters by eliminating a major upfront cost. A study from the real estate site StreetEasy, as reported by Gothamist, found that broker fees contribute to a total of around $12,951 in upfront costs on average for New York renters, an expense that places a major strain on those seeking housing.
According to Caroline Burton, StreetEasy’s general manager, the legislation “provides immediate relief to renters today” by shifting this responsibility to the landlords instead.
Opponents, including the Real Estate Board of New York (REBNY), argue that such a shift might ultimately drive up monthly rents. They suggest that landlords may incorporate these broker fees into the monthly rental cost, leading to higher rents over time, particularly when leases come up for renewal.
While Mayor Eric Adams has expressed cautious support, he remains concerned about potential unintended consequences, especially for small property owners and the possibility of increased rents. “The bill has the right intentions,” Adams commented, “but sometimes good intentions do not get the results you’re looking for.”
