New York City Faces Lawsuit Over Real Estate Broker Fee Law

The struggles of tenants in New York City are well known; there is a reason that the musical Rent was such a big hit even in parts of Middle America that generally have little sympathy for New York.  Of course, being a landlord is not exactly easy, either.  At least New York landlords do not have to deal with the constant struggle to recruit and retain tenants.  Apartments are in such high demand in New York City that, across the five boroughs, the vacancy rate for residential rental units is less than one percent.  The cost of everything in New York is astronomical, though, including maintaining apartment buildings in livable conditions.  If you make the necessary repairs, you barely break even after the tenants pay their rent, but if you do not, the tenants sue.  The last thing that you need is to pay the broker fees to real estate agents when showing an apartment to a prospective tenant.  The controversy over real estate broker fees continues in New York City, and a group that represents landlords has filed a lawsuit against the city over a recently enacted law.  For help acting in accordance with current laws regarding renting out real estate properties, contact a Bronx real estate attorney.

What’s Next for Real Estate Broker Fees in the Big Apple?

The average rent for an apartment in New York City is so high that it will make the people in the Midwest who are complaining about their rent stop in their tracks and count their blessings.  The average New Yorker pays $3,400 per month in rent.  Of course, the hurdles you must clear to enter a rental agreement in New York are nearly as high as the obstacles to buying a condo elsewhere.  Tenants must pay a security deposit, plus the first month’s rent upfront, and until recently, they were almost always responsible for the real estate broker fees.

In 2024, the City Council passed a law that requires landlords to pay the real estate broker fees; also, Mayor Adams did not sign the bill, it passed simply because 30 days went by after they received it, but he did not veto it.  This fall, the Real Estate Board of New York filed a lawsuit against the City Council, alleging that some provisions of the bill are unconstitutional.  They also argue that requiring landlords to pay real estate broker fees will make the cost of renting an apartment in New York less affordable instead of more affordable.  It could even lead to a higher rate of vacancies, which would put landlords in an even tighter spot financially, and tenants would suffer because of it.

Schedule a Confidential Consultation With a Bronx Real Estate Attorney

A real estate lawyer can help you cope with the changing rules related to real estate broker fees and other aspects of being a landlord.  Contact Cavallo & Cavallo in the Bronx, New York to set up a consultation.

Source:

nytimes.com/2024/12/16/nyregion/broker-fees-lawsuit-nyc.html