Renters in New York City are fighting with real estate brokers over who has to pay thousands of dollars in fees when renting an apartment.
In most cities, if a landlord hires a broker to find a tenant, the landlord pays the broker’s fee. But in New York City, it’s different.
Here, tenants often have to pay this fee themselves, which can be as much as 15% of a year’s rent.
Imagine spending nearly $8,000 just because a landlord hired a broker you didn’t even choose!
Experience Prime: A 30-Day Free Trial to Elevate Your Lifestyle. Unlock a world of convenience with a free 30-day trial of Prime! Enjoy free delivery, award-winning TV, exclusive deals, and more. Only $14.99/month after trial. Cancel anytime. Start your free 30-day trial now! (We’re affiliates, so we may earn a commission from qualifying purchases.)
This issue has led to a considerable debate recently. Lawmakers are discussing a new law called the Fairness in Apartment Rental Expenses (Fare) Act.
It would make landlords responsible for paying broker fees, not tenants.
Hundreds of brokers protested against this change, saying it would hurt their business. They gathered outside City Hall to argue that tenants should keep paying these fees.
For renters in New York, where rents are already sky-high (the average rent in Manhattan is over $4,000 a month!), these fees can make moving nearly impossible.
Even if you can afford the rent, these extra fees can add up to tens of thousands of dollars, making it hard for low-income and working-class New Yorkers to find a place to live.
Supporters of the Fare Act say it’s a matter of fairness. They argue that landlords should foot the bill, not tenants, if they hire brokers to rent their apartments.
This change could bring more stability and predictability to renting in the city.
The bill has a lot of support from the city council, but it still needs to be made clear whether it will become law.
Advocates hope it will ease the financial burden on renters and make housing more affordable in New York City.