City Council Seeks To Force Landlords To Pay Brokerage Fees On Residential Properties

New York City Council bills introduced Thursday would shift the burden of paying brokerage fees from tenants to landlords in most cases.

Brokers Fees ( Photo: Bloomberg.com )

The Fair Rentals Act, dubbed the FARE Act by proponents, would require tenants of brokerage houses to pay brokerage fees

Another bill that transfers New York housing brokerage fees to homeowners could be up for discussion with Assemblymember Chi Ossé expected to introduce legislation on Thursday. Landlords typically hire brokers to find tenants for their rental units. Brokers often charge a fee for this service, and landlords often pass that fee on to new tenants instead of paying for it themselves. Fees often exceed one month’s rent. The bill does not cap the amount of fees brokers can charge, the spokesperson added.

No invoice limit brokerage fees. However, we are introducing a bill that would then require the tenant of the broker to pay a fee

Rather than addressing the housing crisis, this bill would be a futile distraction that would do far more harm than good, REBNY said in an email. While the law imposes unfair penalties on realtors for housing shortages and rent increases not caused by realtors, it falsely claims that it will also improve the apartment-finding process for tenants.

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