New York City‘s unique practice of having broker fees applied to tenants looking to rent apartments could be coming to an end, a move that would be an upheaval of New York‘s real estate market.

The FARE Act would make whoever hires a broker pay his or her fee, whether it is the landlord or the renter. Currently, prospective renters pay broker fees, even in situations in which they find their apartment on their own without the help of a real estate broker or agent. In New York, a broker’s fee is typically 15% of the annual rent, which is about two months’ worth of rent, that must be paid upfront.

The bill is one vote away from becoming veto-proof. Thirty-three council members have sponsored the bill in the 51-member council, according to the City.

Renters and those in the real estate industry stood on opposing sides of the argument at a city hall meeting on Wednesday in which 400 people signed up to testify, with some waiting up to two hours. Many testified that brokers did little more than open the door to the apartment or direct them to a lockbox for the key.

“In most businesses, the person who hires the person pays the person,” said Agustina Velez, a city resident who said she recently paid $6,000 to move apartments. “Enough with these injustices. Landlords have to pay for the services they use.”

The new bill is being spearheaded by Democratic Councilman Chi Osse, who recently shared his own experience finding a new apartment. 

“It’s an additional fee in an already expensive and competitive market,” Osse said. “It’s holding a lot of people back from finding new homes, and it’s pushing people out of the city.”

Some in the real estate industry believe the new rule could give landlords room to absorb the cost of the fee, effectively increasing rent prices. 

“Landlords in response will bake these fees into the monthly rent for the tenants to absorb and will therefore increase their rents not only the year they sign but each year they choose to renew,” Bess Freedman, CEO of the brokerage Brown Harris Stevens, told Politico. “Today, an upfront fee in writing is transparent and negotiable. This bill would make the fees hidden and progressive, predatory and incredibly misleading.”

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New York City Mayor Eric Adams, who had strong real estate backing in his campaign, also warned the bill could have unintended consequences, but he has not taken a position on it.

The average rent for an apartment in New York is $3,785 per month, which is 149% higher than the national average.