NYC Renters Could Be Spared Costly Broker Fees Under New City Council Bill

The New York City Council is considering new legislation that could put an end to the exorbitant broker fees residents have to pay when renting an apartment in the city.

The bill, introduced by Democratic socialist Councilman Chi Ossé from Brooklyn, doesn’t eliminate broker fees altogether. Instead, it proposes a shift in the responsibility for payment to the party that hires the broker, whether it’s the tenant or the landlord.

Currently, in most cases, tenants bear the burden of paying broker fees, which often amount to at least one month’s rent, even if it is the landlord who hired the broker in the first place.

This system has turned renting an apartment into a costly nightmare for many New Yorkers, as landlords typically require the first month’s rent, along with a safety deposit equivalent to one or two additional months, in addition to the broker fees.

As an example, last year, a broker managed to pocket a staggering $20,000 fee for renting out a rent-stabilized one-bedroom apartment on the Upper West Side for a mere $1,725 per month.

Councilman Ossé considers this bill to be a matter of common sense, highlighting that New York City stands out among major cities in the United States by placing the burden of paying broker fees on tenants.

However, the proposed legislation faces opposition from influential real estate organizations such as the Real Estate Board of New York (REBNY) and the landlord advocacy group Rent Stabilization Association.

REBNY issued a statement expressing concern that the legislation could negatively impact agent commissions and potentially lead to higher rents for apartment seekers. The organization intends to rally the support of thousands of agents to oppose what they view as a deeply problematic bill, as they have done in similar cases in the past.

{Matzav.com}