NYC Broker Fee Bill Gets Wednesday Committee Hearing
The bill would require the individual hiring the broker, be it tenant or landlord, to foot the broker’s fee.
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NEW YORK CITY — A New York City Council bill set to ease the burden of expensive broker’s fees for renters is slated to get a hearing this week.
The bill, dubbed the Fairness in Apartment Rental Expenses Act (Intro 0360), would amend the city’s administrative code and require the individual hiring a broker, be it tenant or landlord, to foot the broker’s fee.
Currently, tenants typically pay the fee, even if the landlord is the one that hired the broker. The measure would protect tenants who did not hire a broker from footing the broker’s bill, which is estimated to be equal to about two months’ rent for renters, per OpenIgloo.
The legislation, which was introduced in February by Brooklyn council member Chi Ossé, is set to get a Wednesday hearing before the Council’s committee on consumer and worker protection at 10 a.m.
“This bill is common sense,” Ossé said in a statement. “In every other transaction, the party who hires a service pays for the service. New York is unique among major cities in America in having tenants often paying the fee for a broker’s services. This bill is simple and fair in assigning that cost to whoever sought the service.
The council member added that, even if some portion of the broker’s fee cost were passed onto tenants as rent, “it would be distributed over the course of 12 or 24 months, alleviating the prohibitive upfront costs.”
New Yorkers paid an average $10,454 in 2023 on upfront rental moving costs (up 29 percent from 2019) including broker’s fees, according to StreetEasy’s internal data.
Broker fees also wouldn’t be restricted or capped under the bill, and brokers will continue to charge for their services, Ossé said. If approved, the legislation would take effect after 60 days.
“Finding an affordable apartment in New York City is a nightmare — and the towering cost of rent is just the beginning,” Council Member Shaun Abreu said in a statement. “ If we are serious about empowering tenants, tackling our affordability crisis, and protecting renters across this city, we must be united in defense of the FARE Act.”
Over 30 cosponsors back the bill, which has also drawn support from labor unions like the Retail, Wholesale and Department Store Union. Critics include the Real Estate Board of New York, whose spokesperson Sam Spokony told Gothamist that the union believes “it’s not going to achieve the goals the council member stated and will create a number of new challenges.”
Representatives from REBNY and other real estate professionals are set to rally at City Hall Wednesday morning against the legislation, arguing that the measure would harm both agents and tenants, the outlet reported. Over 1,800 REBNY members have registered to testify, according to THE CITY.
This isn’t the first time REBNY has been vocal about broker fees: the association challenged a similar 2020 restriction prohibiting brokers hired by landlords from charging tenants. A state court ruled in REBNY’s favor the following year.
Ossé first introduced the FARE Act in 2023, but that bill never received a hearing date. Wednesday’s hearing will mark the furthest point the bill has reached in the Council to date.
New Yorkers can register to testify in person on Wednesday here. Written testimony can be submitted up to 72 hours after the hearing terminates here.
