The FARE Act, effective Wednesday, eliminates the ability of landlords to charge renters for broker fees unless the renter hired the broker. This change is anticipated to save New Yorkers over 40% in moving costs. However, due to limited investigative capacity and low fines for infractions, the law's success depends on renters actively reporting violations. Councilmember Chi Ossé noted that this could lead to a vigilantism approach where tenants hold landlords accountable, thereby enhancing their negotiating power in rental agreements. Public awareness is crucial for effective implementation.
With limited capacity to investigate brokers and fines for offenses relatively low, the city will depend on renters to be proactive in reporting violations of the new law.
There's this element of vigilantism that will be able to take place here, when it comes to holding these landlords and brokers accountable.
Being that the forced broker fee will be eliminated, that'll give more bargaining power to tenants when it comes to their re-lease signings because it might be cheaper for them to leave their current unit than to pay more.
If a broker asks a renter who didn't hire them for a fee, they are now in violation of the FARE act.
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