Is a Law on Brokers' Fees Giving Renters a Break?

New York Times

5 days ago

Good morning. It's Tuesday. Today we'll look at whether a new local law has transformed the market for apartment rentals. We'll also get a look inside the newly renovated Waldorf Astoria hotel in Manhattan.
This was supposed to be the summer when a new law on broker fees would change the rental market in New York City. The law, called the FARE Act, all but ended a longstanding practice requiring apartment-hunting renters to pay thousands of dollars to brokers.
My colleague Mihir Zaveri says the premise of the FARE Act was simple but transformative: Whoever enlisted a broker's help would pay the broker's fee. If a landlord gave a listing to a broker, the landlord would pay. A broker can show someone an apartment, but it isn't the would-be renter's responsibility to pay the broker — unless they had agreed to a fee arrangement in advance. Some brokers are showing apartments and, afterward, claiming there was a de facto payment agreement.
The Fare ACT went into effect on June 11. I asked Mihir to discuss whether the law has made things better or worse for renters so far.
You write that the results have been mixed. How so?
The intention of the FARE Act was to lower the sometimes staggering upfront cost of moving and make it less confusing and more transparent. In many ways, it has done that. Most renters can avoid broker fees when searching for apartments through online platforms like StreetEasy.
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