Rental Commission Fees Bill Amended
Intro. 1423, a bill to limit the amount a renter could pay a broker for its services, was initially introduced in February. Specifically, the bill mandates that residential brokers would be “prevented from collecting fees from prospective tenants that are above the value of one month’s rent.”
Since its introduction by its prime sponsor, Council Member Keith Powers, the bill has seen fierce backlash from real estate groups such as the Real Estate Board of New York and the New York Residential Agent Continuum. The pushback has led to three sponsors withdrawing support for the bill. Council Members Adrienne Adams, Justin Brannan, and Robert Holden were initially sponsors, but have since removed their names from the proposal.
Leading up to the public hearing, Council Member Powers has clarified that his intention was to shift the burden of paying for a landlord’s broker away from the renter, who traditionally foots the bill, and not limit brokers’ incomes. The bill was amended to reflect that position.
“The amendment explicitly clarifies that landlords should be paying for the hard-working brokers that hustle on their behalf and does nothing about capping broker compensation,” Powers wrote in a statement. “The legislation has been and remains about making it more affordable for New Yorkers to rent an apartment by protecting tenants in these costly transactions.”
The City Council has scheduled a public hearing on this bill for June 27 at 1 p.m.