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Bill freeing NYC renters from upfront broker fees is now law, takes effect in June


By

David Brand

Published Dec 14, 2024


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A stock image of a rental sign.

 

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By

David Brand

Published Dec 14, 2024


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Thinking of moving? You might want to consider waiting until mid-June.

That’s when a new law shifting the upfront cost of broker fees away from tenants will take effect.

The measure, which the City Council approved on Nov. 13 with a veto-proof majority, automatically became law after Mayor Eric Adams declined to sign it within a 30-day window. It will take effect in six months.

The measure could provide some serious financial relief for renters who are often forced to fork over a broker fee equal to 15% of their annual rent — in addition to their first month’s payment and security deposit — before moving into the apartment.

“It’s a money-saver, it makes the city more affordable and allows tenants to have more mobility,” said Councilmember Chi Ossé, who introduced the legislation.

An analysis by the listings platform StreetEasy, which backed the Council bill, found the average renter pays nearly $13,000 in upfront costs when signing a lease.

Ossé said the law will make it easier for low- and middle-income residents to move without having to hand over a check for thousands of dollars to the broker.

The bill's opponents say it could lead to higher rents if the owner factors the fee into the monthly price.

The law could still face obstacles.

The Real Estate Board of New York, which represents brokers and landlords, has suggested it will sue to block implementation. The powerful trade group successfully sued to restore tenant-paid broker fees after state lawmakers attempted to change the status quo with vaguely worded legislation in 2019.

A REBNY spokesperson on Friday pointed to a previous statement from the lobbying group’s president, James Whelan, who said REBNY will “pursue all options to fight against” the new rules.

Tagged

Politics

rent

housing

new york city council

tenants

Mayor Eric Adams

affordable housing

real estate


David Brand

David is a reporter covering housing for Gothamist and WNYC. Got a tip? Email [email protected] or Signal 908-310-3960.

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Gothamist is funded by sponsors and member donations


Gothamist is funded by sponsors and member donations


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