NYC Just Raised Everyone’s Rent Permanently
In this 25 November 2024 video, New York City resident Cash Jordan focuses on NYC’s never ending quest to lower apartment prices without building new apartment buildings, which has led the city to create a law that sounds fair, but may actually raise everyone’s rent.
As of November 13, 2024, New York City’s broker fees are shifted from tenants to landlords under the Fairness in Apartment Rental Expenses (FARE) Act.
The FARE Act prevents landlords from collecting broker fees from tenants for agents they don’t hire. The landlord or whoever hires the broker is responsible for paying the fee. Landlords and their agents must disclose the fees in rental agreements and listings.
Broker fees in New York City are typically 12–15% of the annual rent, or about two months’ rent. For example, if an apartment costs $3,000 per month, the broker fee would be $5,400.
Some say the FARE Act is a good thing because it ends the system of forced broker fees. Others say the legislation could lead to higher rents because landlords will pass the cost of the fees on to tenants.
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