New York State eliminates broker fees for renters.steemCreated with Sketch.

in rent •  5 years ago 

Does anyone know more facts about this?

The rule change prohibits brokers from collecting fees from renters who were hired by landlords.

If a renter hires a broker, then the broker can charge the renter a fee.

Another new law is imposing a ceiling on the security deposit landlords can charge for a unit.

And all of this is praised in the name of "affordability."

My guess is that broker fees used to absorb the search costs previously incurred by landlords. It will now become more difficult to know which apartments are available for rent.

And/or brokers were providing kickbacks to landlords.

The high security deposit could have functioned like "key money" with the interest compensating the landlord for the difference between a market rent and the regulated rent.

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