The new FARE Act in New York City enforces that landlords, not tenants, pay broker fees. This law aims to enhance affordability, as fees can constitute a significant cost for renters. While supportive city council members argue that the measure benefits tenants, real estate groups contend that landlords will offset this cost through rent hikes. Quotes from council members and brokers reveal tensions surrounding the potential effects of the law on the rental market. The enforcement includes fines for violations, reflecting the city’s commitment to regulate broker practices.
The FARE Act shifts the burden of broker fees from renters to landlords, allowing tenants to avoid upfront rental costs. However, critics warn that this could lead to higher rents.
City Councilmember Chi Ossé emphasized the fairness of the law, questioning the logic of tenants paying for a service that landlords ordered by stating, 'What other industry does that exist where someone else orders something, and then someone else has to pay for it?'
Real estate representatives argue that while landlords will pay broker fees, they will likely pass these costs onto tenants through rent increases, undermining the affordability intended by the new law.
The Department of Consumer and Worker Protection plans to enforce the law with fines of up to $2,000 for repeated violations, aiming to ensure compliance among real estate brokers.
Collection
[
|
...
]