New York City Council Bans Broker Fees

The New York City Council has passed the Fairness in Apartment Rental Expenses (FARE) Act, which will eliminate broker fees for most renters, shifting the financial responsibility to property owners. The bill received a veto-proof majority of 42 to 8 and is aimed at alleviating the high costs associated with renting in the city, where average monthly rents reached $3,888. Councilmember Chi Ossé, who sponsored the legislation, argues that it will save renters thousands of dollars and make the rental process fairer, as it prevents tenants from being charged for brokers they did not hire. However, opponents warn that landlords may increase rents to offset these costs, raising concerns about potential long-term affordability issues. The bill will take effect 180 days after Mayor Eric Adams signs it into law, a decision he has yet to make. The legislation has faced significant resistance from the real estate lobby, which fears job losses for brokers and increased housing costs.