The Fairness in Apartment Rentals Act (FARE Act) will soon mandate that landlords pay broker fees, previously passed on to tenants. Landlords are reacting by raising rents; for instance, Jude Bernard increased his rent from $3,200 to $3,600 to offset costs imposed by the new regulation. Although some landlords express concerns about financial strain, many are adjusting their pricing strategies and maintaining high occupancy rates, suggesting a collective response among landlords to implement rent increases as a reaction to the upcoming laws.
"I can't eat over a month's rent," says a landlord who owns an eight-unit building in Chinatown. "I've got an ROI I've got to hit."
Jude Bernard, who has a portfolio of 33 apartments across Harlem and Central Brooklyn, tells me he raised his rents on June 1. A one-bed he owns in Clinton Hill that previously rented for $3,200 is now going for $3,600 - which is just over 11 percent of the annual rent. "This is a direct result of this, just to cover the cost of the FARE Act."
I'm keeping the same tenant, and I'm not advertising, and I'm not having to pay a broker's fee," he says. "As opposed to me doing it $3,600 this year and then having to do it $4,000 next year."
Collection
[
|
...
]