NEW YORK– A bill to make landlords pay real estate agent fees, instead of tenants, goes before the New York City Council for a vote on Wednesday.
The Fairness in Apartment Rental Expenses, or FARE, Act has 33 co-sponsors, which is more than the majority needed to pass, but not enough to be veto-proof.
Under the bill, the person who hires the broker would have to pay him. In most cases this will be the landlord.
Debate on New York real estate agent fee law
The bill would ease the financial burden on apartment hunters, who often pay thousands of dollars in fees before signing a lease.
Councilor Chi Ossé, who introduced the legislationhas promised that this will result in greater affordability for renters, with most cities in the country already following this payment structure.
“What other industry is there where someone else orders something, and then someone else has to pay for it,” Ossé said.
But opponents of the bill in the real estate industry say if landlords have to pay the fee, they will only increase rental costs.
“New York is its own animal, right? And I think it’s a misconception to think that if this bill were to pass, it would automatically become what the rest of the country has,” said Ryan Monell of the Real Estate Board or New York. , said.
New York Mayor Eric Adams weighed in on the proposed legislation on Tuesday, saying the bill has the right intent, but sometimes good intentions don’t produce the intended results. Adams expressed concern that the proposal would turn one-time costs into a permanent rent increase for tenants.
A rally in support of the bill is scheduled for noon outside City Hall. The full council vote is expected around 1:30 p.m
Christina Fan
