Should NYC renters pay broker fees?
New York City's Latest Attempt to End Forced Broker Fees for Renters
New York City and Boston are the two cities where landlords can hire real estate agents and require the tenant to pay the broker's fee. This practice is relatively common in these cities, although it's subject to local regulations and market conditions.
In a rental market with a 1.4% vacancy rate, many prospective tenants see broker fees as a barrier preventing people from moving.
Brooklyn City Councilmember Chi Ossé is trying for the second time to change the way broker fees work in the city. The bill is called Intro 360 and would force landlords to pay broker fees.
A recent rally in New York City had real estate agents from different brokerages gathered in the streets protesting to keep tenants responsible for the fees. According to brokers and landlords, broker fees are not in the budgets of landlords looking for tenants.
Rents in America hit an all-time record high last summer and are on the rise again, along with the record high cost of buying a home. The average New Yorker is paying a $3,474 broker fee on top of the first month's rent and security deposit.
NYC Mayor Eric Adams has not picked a side of this bill to support but states that as a former real estate agent, he understands both sides. Let’s see what’s in store for New York City’s rental market.