NEW YORK – Tenants in New York oppose the law steep broker fees Even if they don’t hire the broker, they have to pay.

StreetEasy data It reveals that the average upfront cost of broker-fee rentals in the city in 2024 is $12,951.

With fees of up to 15% of annual rent, many New Yorkers are saddled with additional expenses on top of moving costs.

The StreetEasy survey shows that 81 percent of renters believe landlords, not tenants, should pay these fees, and 78 percent think they have no choice but to pay broker fees to secure housing. About 76% say broker fees are a barrier to finding a rental, and 60% say these fees prevent them from relocating when necessary.

What is the NYC MOUSE Law?

NEW YORK, NY: Residential buildings Central Park Tower and 220 Central Park South rise above Columbus Circle in New York City. (Photo: Gary Hershorn/Getty Images)

The City Council is set to vote on the Apartment Rental Expense Fairness (FARE) Act, introduced by Councilwoman Chi Ossé, who represents Bedford-Stuyvesant and North Crown Heights. The legislation requires broker fees to be paid by the person who hired the broker (usually the landlord) rather than the incoming tenant. This year Ossé second try Reorganizing the wage system.

As of Tuesday night, the MOUSE Act had gained 33 sponsors; That’s just one short of a veto-proof majority on the 51-member City Council. A committee hearing on Wednesday will give tenants, agents and brokers a chance to share their perspectives on how the bill would affect them.

NYC Realtors

Jacqueline Kennedy Onassis water tank in Central Park, Manhattan in New York City. The Reservoir in New York covers 106 acres and holds over 1,000,000,000 US gallons (3,800,000 m3) of water. The lake is popular for running, jogging, cycling or strolling

Real estate agents argue that although these fees are burdensome for tenants, they are critical to their business. According to StreetEasy, 85% of rental agents say New York’s housing shortage is hurting their business, and 56% spend more than 10 hours marketing a single rental listing. Top pain points include the time (66%) and financial cost (60%) associated with ad units that do not guarantee payment.

Opponents of the bill

Looking east from the Hudson River in Riverside Park, crossing the West Side Highway, one can see the high-rise buildings on the upper west side of Manhattan. A train transfer bridge on the National Register of Historic Places stands over the water. (Photo: Deb Co

Mayor Eric Adams, a former real estate broker, warns that if the FARE Act passes, landlords could shift broker fees to monthly rent, potentially leading to higher base rents. This concern is also voiced by real estate agents who worry that homeowners will find ways to offset costs.

Councilman Ossé plans to hold a rally ahead of the vote Wednesday at 1:30 p.m. If passed, the FARE Act would represent a significant change in how broker fees are handled, but it would not eliminate them entirely. Instead, it aims to ensure that fees are paid by the person hiring the broker and provide much-needed transparency into the hiring process.