NY Bans Broker Fee
A victory for NYC renters! Broker fees are now BANNED in New York State.
Due to a recent interpretation of the previously passed Housing Stability and Tenant Protection Act of 2019, regulators have determined that any fees charged to tenants, above the allotted $20 application fee, is illegal. Therefore, any sort of broker compensation, may only be paid by a landlord, never a tenant.
In a city where tenants have been forced to cough up 15% of an annual lease, this new law is cause for celebration city-wide.
LaMonday, a local renter in Bushwick, Brooklyn said this new law was well overdue. She recalled paying a $2,500 upfront fee to move into her modest 1 bedroom last fall. “Finally, we are done paying these ridiculous fees for no reason.”
Pat, who lives with his two roommates in the East Village was ecstatic of the news. “Finally!” He proclaimed, as he stepped out of his E. 4th Street abode. “We were asked to pay a $4,000 fee which we were able to negotiate down to $3,000 last summer. The broker spent a total of 15 minutes on our application, and even told my roommate his cat wasn’t allowed, which wasn’t even true!”
Brokerage firms and agents across the city are outraged by the Jan. 31st news.
REBNY, The Real Estate Board of New York released the following statement in response to the ‘broker fee ban’:
“We are aggressively pushing back on the Department of State’s misguided interpretation that will have a devastating impact on hard-working real estate agents, owners, and renters throughout New York State. If enforced, this guidance would result in higher prices for New Yorkers as building owners include commissions into rents and dramatically cut the incomes of tens of thousands of agents who provide a valued service in helping people find their new homes.”
Stay tuned as the feeless movement prevails!
Source: feeless® News