Is This the End for New York City’s Brokers

One somewhat burdensome fee that New York City tenants have traditionally been subject to are real estate brokers.  Given the acutely oppressive rental market, tenants have been highly dependent on this profession, sometimes having to pay up to 15 percent of the annual lease to a broker.

But as of last Wednesday, they have been eliminated. In an addendum to last year’s New York State rent laws, regulars out-ruled the broker fees being charged to renters.  This move has the potential to completely turn the market on its head and offer tenants huge protection.  This will eliminate the financial leverage that brokers in New York have been holding over the rental market.

Brokers will still be able to take a fee, but these will have to be paid by the landlord.  The only case where this will not happen will be when a prospective tenant hires them to actually find the apartment.

So for example, those coming from outside of NYC who have found their own rentals online will now no longer be forced to pay a broker’s fee (since the broker has actually not done anything!).