New legislation being reviewed by the New York City Council could save local tenants from hefty broker fees usually associated with renting apartments. Brooklyn Councilman Chi Ossé, a Democratic socialist, initiated this move on Thursday, June 22nd.
The proposed legislation will not eliminate broker fees but instead, place the onus of payment on the party engaging the broker, be it the tenant or landlord. Currently, tenants usually bear the burden of broker fees, which often equate to at least one month’s rent.
This billing structure has rendered the process of renting apartments a financial ordeal for many New York residents. Landlords typically require the first month’s rent and an additional one to two months’ rent as a safety deposit upfront, along with the broker fees.
In the past, a broker could amass fees totaling thousands of dollars, reaching a staggering amount of $20,000, from the transaction of just a single one-bedroom apartment.
Councilman Ossé has defended the proposal as a “common sense” measure, citing that New York City is distinct amongst major American cities as tenants often pay the fee for a broker’s services.
However, the proposal has already faced backlash, with critics including the Real Estate Board of New York (REBNY) and the Rent Stabilization Association.
REBNY has claimed that the proposed legislation might inadvertently decrease agent commissions while increasing rents for prospective apartment renters. It has promised to rally against this “deeply problematic bill.”
