The Fairness in Apartment Rentals (FARE) Act Passes in New York City’s Council 42-8
By Manhattan Real Estate Tracker, November 14, 2024
A bill was enacted yesterday in New York that eliminates broker fees for residential apartment renters. The New York City Council enacted the Fairness in Apartment Rentals (FARE) Act, which was introduced by Brooklyn City Councillor Chi Ossé. It takes effect 180 days from now. Typically, on a “no fee” apartment, the tenant pays the broker commission that normally ranges from one month’s rent to 15% of the first year’s annual rent. This bill would now require whoever hires the broker to pay the broker. Now as a result of this act, if the landlord/owner wants his broker to market an apartment as “no fee”, the landlord/owner will pay the broker an agreed upon commission. If a tenant retains a broker to find an apartment, then the tenant would pay the broker he retained an agreed upon commission.
According to REBY, “For five years, REBNY has been fighting against harmful legislation that threatens brokers’ livelihoods. The newest version of the FARE Act, like its predecessor, is bad legislation that would harm tenants and kill jobs. The revised FARE Act (Intro. 360-A) will hurt New Yorkers by and could limit their ability to learn about rental opportunities. The FARE Act could also lead to increased rents. The FARE Act will certainly limiting housing access, raising rents, and jeopardizing the livelihoods of hardworking real estate agents.”
Mayor Adams, a former real estate agent did not support the bill since he agreed with REBNY that the landlords/owners will simply add the broker commission they had to pay to the rent each month so that the tenant will be paying more for the apartment in the long run.
Brooklyn City Councillor Chi Ossé at City Hall on November 13, 2024