Why So Much Controversy Over the FARE Act?
The conversation at housewarming parties with new homeowners is mind numbingly predictable. After a few cursory remarks about the décor, you can be sure that the host will launch into a long litany of complaints about the burdensome expenses of homeownership. First, you have to put together money for a down payment, and then there are the closing costs. After that, there is all the money the host spent renovating various parts of the house before moving it. “Things are so much simpler for you renters,” the host says, in the ultimate humblebrag. Are they, though? The cost of moving to a new apartment in New York City is prohibitively expensive for renters, too. Not even including the rent, it is common for tenants to spend upwards of $10,000, just on the move. A new law that goes into effect next month aims to ease some of the financial burdens on tenants, but not everyone is convinced that it will solve New York’s housing affordability problems. To find out more about the rights of tenants under the FARE Act, contact a Bronx real estate attorney.
What Do Real Estate Brokers Do?
Only the boldest or most stubborn among us would attempt to buy or sell a real estate property without hiring a real estate agent. The process of renting an apartment is theoretically simpler. It was less simple before the advent of rental property listing apps like StreetEasy and RentHop, prospective tenants had to look through classified ads in physical newspapers or on Craigslist, call the landlords, and ask them to email floor plans and other relevant paperwork. It was easier to find a suitable apartment by contacting a real estate broker, who was already in contact with landlords and had the information you needed at his or her fingertips, plus advice, based on the experiences of previous clients, about what to expect from the various properties where the tenant was considering renting. Today, though, most tenants rent without enlisting the services of brokers, much as most travelers book their airline tickets and hotel reservations without enlisting the help of travel agents. Instead, it is landlords who hire them to prepare listings on apps, but tenants continue to pay the broker fees as part of the lease agreement.
Does Eliminating Broker Fees Solve New York’s Housing Affordability Crisis?
Broker fees can be pricey, sometimes as much as one month’s rent; considering that tenants pay them at the same time as they hire movers and pay the security deposit, the costs can be burdensome. Beginning on June 11, the FARE Act will require that the party that requested the services of the broker is the one that must pay the broker fee. The Real Estate Board of New York objects vociferously to the new law, saying that it will only make rents more expensive because it adds to the financial burdens of landlords.
Schedule a Confidential Consultation With a Bronx Real Estate Attorney
A real estate lawyer can help you exercise your rights as a tenant when moving to a new apartment. Contact Cavallo & Cavallo in the Bronx, New York to set up a consultation.
Source:
nytimes.com/2025/04/21/nyregion/nyc-broker-fees-law.html
