
The New York Department of State has recently released a statement saying New York City renters will no longer have to pay high broker fees when attempting to lease an apartment, according to Forbes’ contributor Aly Yale. As a result, landlords should expect to accrue those costs. The reversal of practice will not only have an impact on NYC renters going forward, but on the local market as a whole.
Traditionally, New York landlords would hire brokers, who would then list their properties and market it to tenants. Prospective tenants who wanted to lease the property would then need to pay the broker a fee—usually between 12% to 15% of one year’s rent. They also faced security deposits, first month’s rent and other costly expenses.
Back in June of last year, DOS released new rent regulations capping security deposits to one month’s rent and application fees to just $20. At the time, it was unclear if broker’s fees would be impacted by the changes.
According to this latest statement from the department, they most certainly are, and prospective tenants can now pay no more than $20 for anything—including credit and background checks—regardless of whether a broker is marketing the property or not.
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