New York City's FARE Act, which took effect recently, prohibits landlords from imposing broker fees on renters. This change is significant as it reduces the costs tenants face when moving into a new property, notably lowering upfront payments from an average of $13,000 to $7,500. However, experts caution that landlords may react by increasing rental prices to recuperate lost income from broker fees. While there were legal attempts to block this new law, they were denied, marking a pivotal shift in NYC's rental market dynamics.
New York City's FARE Act prohibits landlords from charging tenants broker fees, which averaged 12-15% of annual rent, reducing upfront costs for renters.
Despite the win for renters, experts warn that landlords may respond by increasing rents to offset the lost broker fees, potentially resulting in higher overall housing costs.
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