Reports from real estate market analysis firms or official housing market data

NYC Council Passes FARE Act with Veto-Proof Majority to Shift Broker Fees to Landlords

Nov 13, 2024, 09:02 PM

On November 13, the New York City Council passed the Fairness in Apartment Rentals Act (FARE Act) with a veto-proof majority vote of 42-8, shifting the responsibility for paying broker fees from tenants to landlords. Sponsored by Council Member Chi Ossé, the legislation aims to alleviate the financial burden on renters by requiring landlords who hire brokers to pay their fees, ending the practice of tenants being forced to pay broker fees that can amount to as much as 15% of the annual rent. Upfront costs for renting in New York City can easily exceed $10,000, and this bill seeks to reduce that burden on tenants. Real estate interest groups such as the Real Estate Board of New York (REBNY) have opposed the bill, arguing that it could lead to higher rents as landlords offset the additional costs. Despite this opposition and potential veto by Mayor Eric Adams, the veto-proof majority ensures the bill is expected to become law, taking effect 180 days after being signed, providing relief to renters in the city's challenging housing market.