As of today, navigating the high seas of New York City's rental market just got less financially treacherous for apartment hunters. The Fairness in Apartment Rental Expenses (FARE) Act comes into effect, aiming to shift the cost of broker fees from renters directly to landlords - a move that has the city split down the middle. CBS News New York reported that under the new legislation, the landlord, being the usual party hiring the broker, is responsible to foot the bill. Previously, renters could find themselves shelling out up to 15% of their annual rent in broker fees.
Industry professionals voice their concerns, warning that landlords may opt to roll these costs into monthly rents instead. One broker, Janna Raskopf, highlighted the potential for indirect cost pass-through to tenants, telling CBS News New York, "The landlord is going to have to pay us in some way. It's just going to be baked into the rent." However, with the FARE Act now in play, renters are promised at least some immediate financial relief when signing new leases, as previous upfront costs might have effectively become a barrier to entry for many.
Proponents of the reform are holding their ground. Councilmember Chi Ossé, who sponsored the legislation, criticized the old system as illogical, saying to CBS News New York, "What other industry does that exist where someone else orders something, and then someone else has to pay for it?" His perspective reflects a sense of fairness in who ultimately shoulders the broker’s fee, asserting that the act should ease the burden for New Yorkers moving apartments.
However, some New Yorkers are poised to potentially see an increase in their monthly rents. Yet, many, like a renter who spoke to ABC7 New York, welcome the change with open arms, expressing, "I'm very happy about that. It definitely makes it easier ... It's expensive to live here, it's expensive to find apartments, it's expensive to move apartments." And for those questioning enforcement, the NYC Department of Consumer and Worker Protection has promised to rigorously crack down on any infractions with fines of up to $2,000 for repeated violations. Renters who believe they are being charged unfairly are advised to report violations to the city's consumer department.
