NEW YORK — There’s a new push to reform broker fees in New York City.
Many New Yorkers know when you move into a new apartment, you need to pay the first month’s rent and security deposit, and then, quite often, you have to pay the broker fee for the landlord, resulting in a total of about three months’ rent.
There’s now a proposal to cut down those up-front costs.
What are broker fees?
A broker fee is a commission paid to an agent in return for assistance in the rental of a unit.
In New York City, landlords often hire a broker to fill a vacancy and pass the cost of the broker onto the new tenant.
Typically, a broker’s fee will be 12-15% of the annual rent, but the state of New York does not cap fees.
While the city does not officially track the number of no-fee listings, the Real Estate Board of New York (REBNY) says right now, more than half — 54% — include a broker fee.
“This percentage fluctuates up and down throughout the year but demonstrates there is choice in the market,” said a REBNY spokesman.