


In New York City’s highly competitive rental market, perhaps no ritual stokes greater ire for prospective tenants than paying the broker’s fee.
For decades, tenants were expected to pay the fee — a one-time payment that can cost as much as 15 percent of the annual lease amount — regardless of how closely they worked with the broker. New York City is one of only a few cities in the United States where tenants pay for a broker they do not hire themselves.
But that is likely to become a thing of the past: On Wednesday, the New York City Council voted to approve Intro 360, called the Fairness in Apartment Rentals Expenses act. The bill requires whoever hires a broker to pay their fee, meaning a landlord will foot the bill if a broker lists a home on their behalf.
Landlords and their agents would also be required to disclose all upfront fees in listings and rental agreements, or else risk a penalty, including fines of up to $2,000. The bill passed 42 to 8, which was enough for a veto-proof majority if Mayor Eric Adams attempts to stop it. (In a news conference last month, Mr. Adams expressed concern over how the legislation would affect “small mom and pop property owners.”)