New State Law Prohibits Realters From Charging A Brokers Fee, May Cause Real Estate Mayhem

by Monsey.info

The New York State real estate world has been thrown into chaos after New York States attempt to regulate the cost of renting an apartment may have killed an industry.

The new law enacted in 2019, the Statewide Housing Security & Tenant Protection Act, prohibits a landlord’s agents from charging a commission on rentals.

This would not completely destroy the real estate rental market, but would rather force the landlords to pay the fees associated with the rentals, making them agents of the landlords.

So, tenant would now only have to come up with two months rent rather than three, which before was first months rent, security, and one month broker fee.

The problem is, that landlords can’t ask for more than one month rent in advance, forcing landlords to up the rent to cover the cost.

And if you had a prior landlord tenant eviction because you did not pay, or were a horrible tenant, that information cannot be used to decide if you should be a renter, or the landlord can get sued.

This basically puts renters real estate brokers out of business and makes landlords pay landlord agents a smaller flat fee, with the landlord agents probably offering nothing to tenants agents.