In a significant change to New York City’s rental landscape, the City Council has voted to prohibit landlords from forcing tenants to pay broker fees when renting apartments.
The legislation, which passed with a decisive 42-8 vote, addresses a long-standing burden for New York renters who have historically paid fees that can reach up to 15% of a year’s rent – often adding thousands of dollars to the upfront costs of securing housing in one of America’s most expensive rental markets.
“Anyone who has paid 15% of their annual rent for someone to let you in an apartment for 10 minutes knows the practice is nothing more than legalized theft,” tech investor Bradley Tusk told the Associated Press.
The new law transfers the responsibility for broker fees to property owners, though critics note that landlords could potentially offset these costs by raising rental prices. The change comes as tenant advocacy groups have spent years campaigning for rental reforms in a city where housing affordability remains a critical issue.
The bill’s passage marks a significant shift away from what many consider an outdated system, particularly as the rental market has evolved toward online listings and self-guided apartment tours.
Not everyone celebrates the change, however. The real estate brokerage industry, which employs over 25,000 people across the city, has expressed strong opposition. Jordan Silver, a broker with Brown Harris Stevens, voiced concerns to the Associated Press: “This is the start of a top-down, government-controlled housing system.”
For many New Yorkers searching for housing in the city’s competitive market, the elimination of mandatory broker fees represents a welcome financial relief, removing a significant barrier that has complicated the apartment-hunting process for generations of renters.
The legislation addresses growing calls for housing reform in a city where rental costs continue to climb and affordable housing remains increasingly difficult to secure.
