• Goodbye Broker Fees: No more broker fees in New York State

    February 7, 2019
  • Spectacular views, exceptional style. The city that never sleeps, just got even better! Say goodbye to those broker fees New York renters. To protect applicants seeking housing, New York State tenants can no longer be charged a broker fee as part of up front fees for renting.  However, if a tenant hires their own broker, they will have to pay a broker fee. 

    For many renters, a broker fee can be a pain when attempting to lease a new rental.The standard broker collect fees can be anywhere from 12 to 15 percent of a prospective tenant's one year’s rent. The traditional, one-time broker fee paid by the tenant will now be paid by the landlord according to the Statewide Housing Security & Tenant Protection Act of 2019 and the Housing Stability & Tenant Protection Act of 2019 . To further sweetener the deal, under the Acts, “landlords, lessor, sub-lessor or granters” are prohibited from collecting an application fee greater than $20.00. Kinda makes you want to go rent something right now, but anyways let's move on.  

     Not only have application fees decreased, but if a tenant  shows proper documentation of a background or credit check conducted within the past thirty days the fee must be waived. “ I called for the most sweeping, aggressive tenant protections in state history.” Governor Andrew M. Cuomo stated on the Signing of Rent Law Legislation. “I'm confident the measure passed today is the strongest possible set of reforms that the Legislature was able to pass and are a major step forward for tenants across New York.”

     As for the brokers, will this new law lead to thousands of brokers losing profits? How will this new burden affect the owners? Brokers will still be able to collect fees, but from the landlords instead of the tenants. Maybe the owners will find ways around paying broker fees by hiring staff  to handle these transactions.This new law is aimed to protect tenants and strengthen the rental market, but can also lead to increasing prices by including the broker’s fee into rents.

    As for now, say bye bye to brokers fees.

    The Solution,

    By Angie B The Blogger

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