The enactment of New York City's FARE Act aims to alleviate rental costs by banning broker fees, traditionally up to 15% of annual rent. While initial moving expenses are expected to drop significantly from $12,942 to about $7,537, landlords are reportedly looking for ways to pass costs back to tenants. Critics like the Real Estate Board of New York warn that the law might ultimately lead to fewer available listings and increased rental prices. Historical data shows broker fees correlated with higher rent increases, indicating a complex relationship between rental costs and market regulations.
New Yorkers will soon realize the negative impacts of the FARE Act when listings become scarce, and rents rise. We will continue to litigate this case as well as explore our avenues for appeal.
Apartments with a broker's fee had an average increase in rent around 5.3% compared to the rest of the market, which saw an increase of 4.6%.
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