The FARE Act, effective June 11, is transforming New York City's rental market by shifting broker fees to the hiring party, thereby promising to significantly cut upfront costs for renters. StreetEasy reports that the average upfront cost of $12,942 could drop nearly 42% to $7,537. Despite fears that landlords might increase rents to compensate for lost fees, data suggests that rent growth for no-fee units aligns with broader market trends, indicating property managers are absorbing extra costs. Ultimately, rental brokers will continue to play an essential role in the market.
The FARE Act is set to significantly lower upfront rental costs for New York City renters by shifting broker fee responsibility and enhancing transparency.
The FARE Act mandates upfront broker fees to be disclosed, projecting a drop in average upfront costs from $12,942 to $7,537 for renters.
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