NYC Council Passes ‘Broker Fee Bill’
The New York City Council has passed the Fairness in Apartment Rentals (FARE) Act, shifting the responsibility of paying broker fees from tenants to landlords. The legislation, approved by a 42-8 vote, aims to alleviate the financial burden on renters by prohibiting brokers from charging fees to tenants when representing landlords exclusively. The bill is set to take effect 180 days after passage, pending any veto from Mayor Eric Adams.
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The Real Estate Board of New York, the New York Association of REALTORS®, and The Hudson Gateway Association of REALTORS® have strongly opposed the bill.
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The FARE Act does not affect rental policy in Westchester County.
Ralph’s Take
Shifting broker fees to landlords may result in higher rents, as landlords could pass the costs into monthly payments. There are also concerns that the bill could reduce access to rental listings. Prior to the vote, Mayor Adams acknowledged the city was seeking a compromise. I believe brokers should collect fees transparently and allow open negotiation among all parties involved.
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